GPWC Unhappy with F1 Changes

GPWC Holdings, the company planning to set up a series to rival Formula One in 2008, said today they were dismayed by the FIA's attitude towards cost-cutting, claiming the governing body have disregarded earlier proposals from the carmakers.

The FIA plan to introduce a series of radical measures aimed at reducing costs and bringing the excitement back to the sport.

GPWC said they had discussed, at a meeting in Berlin, the announcement issued by Formula One's ruling on Wednesday on the subject of cost-cutting in Formula One, and were planning to advice Formula One teams to analyse the appropriate mechanisms available to ensure that the changes are not implemented.

While the group of carmakers said they are in favour of reducing costs, they claimed that "Formula One needs to keep its fundamental characteristic that it is showcase for the highest level of technology."

"It is also important that any change to the rules be established with sufficient advance notice knowing also that any change whatsoever inevitably increases cost, at least in the short term," said a statement by GPWC.

"Therefore GPWC is dismayed to note that the cost cutting measures already proposed by the teams in December last year and supported by the manufacturers have effectively been partially disregarded by the FIA.

"These measures were widely agreed to be reasonable and adequate and would without doubt have considerably reduced costs and fully enhanced the spectacle of Formula One. Whilst it does not believe that the content, and manner of implementation of Wednesday's proposed changes are consistent with the contractual framework under which Formula One operates, GPWC is committed to resolving matters in a manner that supports the sport.

"GPWC will therefore ask the teams affiliated to its members to analyse the appropriate mechanisms available to them, to ensure that changes are not implemented, or precedents set, that will cause problems for Formula One, the teams and the drivers in the future."

GPWC again confirmed their commitment to create "the premiere series in world motor sports in co-operation with the organisers and the teams that currently participate in Formula One." GPWC again confirmed their intention to have the new championship set up not later than 2008.

The board said they have appointed Goldman Sachs to begin discussions with representatives of the SLEC shareholders to determine as soon as possible whether a transaction with SLEC shareholders could achieve GPWC's objectives.

SLEC is the firm which holds the commercial rights to Formula One motor racing, with three banks formerly affiliated with the Kirch Group now controlling 58% of the shares of SLEC.

GPWC also announced that Ferrari Spa has replaced Fiat Spa as shareholder and partner with BMW, DaimlerChrysler, Ford and Renault and has signed, together with its partners, a Memorandum of Understanding for a close co-operation.

The five manufacturers said they had also discussed the possibility of supplying engines to more than one team to guarantee that there is no shortage of engines in Formula One.