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[McLaren Fan]

From autosport.com:

By Jonathan Noble Friday, December 5th 2008, 07:31 GMT

FIA president Max Mosley has moved in the wake of Honda's Formula One exit to lay out the terms for a drastically cheaper engine offer from Cosworth that will help reduce costs in the sport.

On the same day that F1 lost a major manufacturer, Mosley has written to teams explaining his vision for how a deal with the famed Northampton engine supplier can help bring budgets down substantially.

He has revealed that the FIA is now in exclusive talks with Cosworth about a deal for teams from 2010 that could result in an annual engine and transmission cost of less than £6 million.

Mosley says that as long as four teams sign up for a supply of engines from 2010, then the annual charge for a three-year deal will be just £5.49 million - with an upfront fee of £1.68 million. If more teams sign up, then the cost will be reduced further.

In a letter sent to F1 teams on Friday, just a few hours after Honda cited the worldwide financial downturn as forcing it to quit F1, Mosley outlined his plans for a standard engine - and made it clear that manufacturers would not be forced to run them.

The tender process for standard engines ended last month and after evaluating the options, the FIA has opted to press ahead with Cosworth.

Mosley wrote: "We have completed the tendering process and are now in exclusive negotiations with Cosworth together with Xtrac and Ricardo Transmissions (XR) to supply a complete Formula One power train starting in 2010.

"The engine will be a current Formula One engine while the transmission will be state-of-the-art Formula One and a joint effort by two companies which already supply transmissions to most of the grid.

"The cost to each team taking up this option will be an up-front payment of £1.68M (€1.97M) and then £5.49M (€6.42M) per season for each of the three years of the supply contract (2010, 2011, 2012). This price is based on four teams signing up and includes full technical support at all races and official tests, plus 30,000 km of testing.

"The annual cost will reduce if more teams take up the option, for example to £4.99M (€5.84M) per team with eight teams. It will further reduce if less than 30,000 km of testing is required. Neither engine nor transmission will be badged."

Although the idea of a standard engine had prompted quit threats from several manufacturers, Mosley has clarified that teams will not be forced to run the power units if they do not want to.

However, he has made it clear that any engine that car makers produce themselves will not be allowed to have better performance than the standard unit.

Teams will have the option of using the standard engine, building the unit themselves or, Mosley explains, "continue to use their existing engine, with the current ban on development and requirement for engine parity still in place (noting that the engine supplied will become the reference engine for output and other performance indicators and no engine will be permitted to exceed those indicators)."

Teams building the engine themselves or using their own power unit will, however, be required to use the XT transmission.

Mosley believes the engine move, allied to other cost cutting measures, will keep the independent teams alive and potentially find new manufacturers if more car makers pull out - which Mosley says 'seems likely.'

Teams have until next Thursday (December 11) to indicate their desire to run the standard engine. Even if fewer than four teams sign up, then the FIA may still proceed with the plans - although with slightly higher cost figures.

A statement on the FIA's website said that the governing body was focused on working with F1 supremo Bernie Ecclestone and the Formula One Teams' Association (FOTA) to secure the sport's future.

"The announcement of Honda's intended withdrawal from Formula One has confirmed the FIA's longstanding concern that the cost of competing in the World Championship is unsustainable," said the statement. "In the FIA's view, the global economic downturn has only exacerbated an already critical situation.

"As the guardians of the sport, the FIA is committed to working with the commercial rights holder and the remaining members of FOTA to ensure that Formula One becomes financially sustainable."

The letter to the teams from Max Mosley:

Further to my letter of 18 November (copy attached for convenience), we have completed the tendering process and are now in exclusive negotiations with Cosworth together with Xtrac and Ricardo Transmissions (XR) to supply a complete Formula One power train starting in 2010. The engine will be a current Formula One engine while the transmission will be state-of-the-art Formula One and a joint effort by two companies which already supply transmissions to most of the grid.

The cost to each team taking up this option will be an up-front payment of £1.68M (€1.97M) and then £5.49M (€6.42M) per season for each of the three years of the supply contract (2010, 2011, 2012). This price is based on four teams signing up and includes full technical support at all races and official tests, plus 30,000 km of testing. The annual cost will reduce if more teams take up the option, for example to £4.99M (€5.84M) per team with eight teams. It will further reduce if less than 30,000 km of testing is required. Neither engine nor transmission will be badged.

As suggested in my letter of 18 November, teams participating in the 2010 Championship would then have three options:

- the above;

- the right to build an engine themselves, identical to the above, having been supplied with all the necessary technical information;

- the right to continue to use their existing engine, with the current ban on development and requirement for engine parity still in place (noting that the engine supplied will become the reference engine for output and other performance indicators and no engine will be permitted to exceed those indicators).

Teams opting for one of the latter two options would nevertheless use the XR transmission.

In combination with the programme of cost reductions for the chassis, race weekend and team home base outlined in my letter of 18 November, these arrangements have a number of advantages. These include:

- enabling the independent teams to survive in the current difficult economic climate; facilitating the replacement of a manufacturer team if (as seems likely) we suffer additional losses;

- stabilising Formula One while new road-relevant technologies are introduced together with a state-of-the-art high tech engine, which could be in Formula One as early as 2013 should the car industry by then be in a position to fund its development;

- avoiding any change to the Formula One spectacle and keeping the technology at current levels.

These arrangements are on the basis that at least four teams enter into contracts to use the power train described above, and do so no later than close of business (5pm CET) on Thursday 11 December 2008. In the event of fewer than four teams signing up, the FIA may still proceed but the price on offer will vary. The supply contracts will be with Cosworth but in the first instance teams are requested to make their intentions known to my office.

Yours sincerely,

Max Mosley

[KyrosV]

Well thats a little better if they have the option of using them, I think the manufacturers will stick to their own engines but the other teams should go for it!

[8-ball]

This is Max's plan to sneak in his standard engine regs through the back door. Smaller teams will go for it but what is the point if the Ferrari, Mercedes, BMW, Renault engines are faster? The best they can hope for would be 7th place barring any unforeseen incidents.

Suppose all the smaller teams go for the Cosworth. Then we will hear whining in a couple of years about how the sport isn't exciting enough as only 2/3 teams win races and so we should make all teams run the Cosworth engine. Costs by that time would probably be through the roof and Max's Formula Ferrari/Cosworth dream would be realized. Max is 4 steps ahead of everybody else but luckily I am are 5 steps ahead and can see his devious plans well in advance

[FerrariFan63]

This is Max's plan to sneak in his standard engine regs through the back door. Smaller teams will go for it but what is the point if the Ferrari, Mercedes, BMW, Renault engines are faster? The best they can hope for would be 7th place barring any unforeseen incidents.

Suppose all the smaller teams go for the Cosworth. Then we will hear whining in a couple of years about how the sport isn't exciting enough as only 2/3 teams win races and so we should make all teams run the Cosworth engine. Costs by that time would probably be through the roof and Max's Formula Ferrari/Cosworth dream would be realized. Max is 4 steps ahead of everybody else but luckily I am are 5 steps ahead and can see his devious plans well in advance

I think something even more evil could happen. All Max has to do is get a few teams using the Cosworth engine. Then, Max freezes engine development even more firmly than before, with no allowed advances in engine, materials, lubricants, or fuels. But Max says that he'll allow Cosworth time to develop their engine to achieve "parity" with the works engines to allow a "level playing field". Cosworth, in the back of a few tail end teams such as Force India is allowed to develop the engine until the Force Indias will be matching McLaren and Ferrari. Which of course would mean that the Cosworth would be the dominant engine on the grid. After that, it becomes incredibly tempting for other teams to switch to the Cosworth engine, and teams that don't would be at a relative disadvantage. So the one engine rule comes in by an even more obscure back door.

[Matkins]

This is Max's plan to sneak in his standard engine regs through the back door. Smaller teams will go for it but what is the point if the Ferrari, Mercedes, BMW, Renault engines are faster? The best they can hope for would be 7th place barring any unforeseen incidents.

Suppose all the smaller teams go for the Cosworth. Then we will hear whining in a couple of years about how the sport isn't exciting enough as only 2/3 teams win races and so we should make all teams run the Cosworth engine. Costs by that time would probably be through the roof and Max's Formula Ferrari/Cosworth dream would be realized. Max is 4 steps ahead of everybody else but luckily I am are 5 steps ahead and can see his devious plans well in advance

Not quite, because...

Teams will have the option of using the standard engine, building the unit themselves or, Mosley explains, "continue to use their existing engine, with the current ban on development and requirement for engine parity still in place (noting that the engine supplied will become the reference engine for output and other performance indicators and no engine will be permitted to exceed those indicators)."

Meaning that the Cosworth will be the standard engine by which any other engines will have to meet up to, but not exceed its performance. So under these regs its pointless developing your own engine, every team may as well use the Cosworth unless they can do it themselves for cheaper.

It very sneeky how Mosely is making it seem flexible but actually its inevitable that most, if not the entire grid, will end up on this Cosworth engine because there is no advantage in developing their own. Also the old "buy now and get this great price" trick is being used to try get the ball rolling quickly.

Despite my resentment towards Mosely and his cunning political mind, I am still undecided weather a standard engine in F1 is a nightmare or acceptable and necessary. I know that's going to be controversial here.

[8-ball]

This is Max's plan to sneak in his standard engine regs through the back door. Smaller teams will go for it but what is the point if the Ferrari, Mercedes, BMW, Renault engines are faster? The best they can hope for would be 7th place barring any unforeseen incidents.

Suppose all the smaller teams go for the Cosworth. Then we will hear whining in a couple of years about how the sport isn't exciting enough as only 2/3 teams win races and so we should make all teams run the Cosworth engine. Costs by that time would probably be through the roof and Max's Formula Ferrari/Cosworth dream would be realized. Max is 4 steps ahead of everybody else but luckily I am are 5 steps ahead and can see his devious plans well in advance

Not quite, because...

Teams will have the option of using the standard engine, building the unit themselves or, Mosley explains, "continue to use their existing engine, with the current ban on development and requirement for engine parity still in place (noting that the engine supplied will become the reference engine for output and other performance indicators and no engine will be permitted to exceed those indicators)."

Meaning that the Cosworth will be the standard engine by which any other engines will have to meet up to, but not exceed its performance. So under these regs its pointless developing your own engine, every team may as well use the Cosworth unless they can do it themselves for cheaper.

It very sneeky how Mosely is making it seem flexible but actually its inevitable that most, if not the entire grid, will end up on this Cosworth engine because there is no advantage in developing their own. Also the old "buy now and get this great price" trick is being used to try get the ball rolling quickly.

Despite my resentment towards Mosely and his cunning political mind, I am still undecided weather a standard engine in F1 is a nightmare or acceptable and necessary. I know that's going to be controversial here.

That was my point expect that you phrased it better than me (articulation has never been my strong point). Max is sneaking in his engine standardization through the back door by making teams conform to the engine that he wants.

Standard engines will be a bad move imo. F1 is supposed to be the pinnacle of motorsport where teams pit their engineering knowledge and drivers against each other on the track. What is the point of turning it into a glorified A1 GP by making everyone run the same engine. Soon Max will start talk about teams having the same chassis!!

[Gaz]

Mosley is a f***ing muppet.

[tifosi]

I dont think anyone likes having a standard engine rule, but at the same time, I dont think people like seeing big teams, such as Honda, leave F1 because of what is happening with the world's economy. It is a fact that people dont like change, but at this time, a standard engine to reduce costs tremendously is the right move. I hope that this rule doesnt last too long though, and that it does not restrict the constructor competitiveness in F1. Furthermore, I hope that after the economic crisis, and/or after teams are again able to afford the expenses that they had in recent years, the standard engine rule will be removed. We'll see what happens.

[Gaz]

I dont think anyone likes having a standard engine rule, but at the same time, I dont think people like seeing big teams, such as Honda, leave F1 because of what is happening with the world's economy. It is a fact that people dont like change, but at this time, a standard engine to reduce costs tremendously is the right move. I hope that this rule doesnt last too long though, and that it does not restrict the constructor competitiveness in F1. Furthermore, I hope that after the economic crisis, and/or after teams are again able to afford the expenses that they had in recent years, the standard engine rule will be removed. We'll see what happens.

what would the point in a team like Honda competing if the engines were standerdized.

and even if they did take the cosworth engine it wouldn't reduce costs that much so they could still afford to compte.

its a stupid idea and mosley needs to stop getting involved.

[tifosi]

I dont think anyone likes having a standard engine rule, but at the same time, I dont think people like seeing big teams, such as Honda, leave F1 because of what is happening with the world's economy. It is a fact that people dont like change, but at this time, a standard engine to reduce costs tremendously is the right move. I hope that this rule doesnt last too long though, and that it does not restrict the constructor competitiveness in F1. Furthermore, I hope that after the economic crisis, and/or after teams are again able to afford the expenses that they had in recent years, the standard engine rule will be removed. We'll see what happens.

what would the point in a team like Honda competing if the engines were standerdized.

and even if they did take the cosworth engine it wouldn't reduce costs that much so they could still afford to compte.

its a stupid idea and mosley needs to stop getting involved.

How much does a team spend on developing an engine throughout a season?

[Gaz]

I dont think anyone likes having a standard engine rule, but at the same time, I dont think people like seeing big teams, such as Honda, leave F1 because of what is happening with the world's economy. It is a fact that people dont like change, but at this time, a standard engine to reduce costs tremendously is the right move. I hope that this rule doesnt last too long though, and that it does not restrict the constructor competitiveness in F1. Furthermore, I hope that after the economic crisis, and/or after teams are again able to afford the expenses that they had in recent years, the standard engine rule will be removed. We'll see what happens.

what would the point in a team like Honda competing if the engines were standerdized.

and even if they did take the cosworth engine it wouldn't reduce costs that much so they could still afford to compte.

its a stupid idea and mosley needs to stop getting involved.

How much does a team spend on developing an engine throughout a season?

not much considering their frozen at the moment.

[tifosi]

I dont think anyone likes having a standard engine rule, but at the same time, I dont think people like seeing big teams, such as Honda, leave F1 because of what is happening with the world's economy. It is a fact that people dont like change, but at this time, a standard engine to reduce costs tremendously is the right move. I hope that this rule doesnt last too long though, and that it does not restrict the constructor competitiveness in F1. Furthermore, I hope that after the economic crisis, and/or after teams are again able to afford the expenses that they had in recent years, the standard engine rule will be removed. We'll see what happens.

what would the point in a team like Honda competing if the engines were standerdized.

and even if they did take the cosworth engine it wouldn't reduce costs that much so they could still afford to compte.

its a stupid idea and mosley needs to stop getting involved.

How much does a team spend on developing an engine throughout a season?

not much considering their frozen at the moment.

I guess that is true. But, would standard engines introduce a significant cost cut compared to the way engines are now? By the way, I am definitely not for the idea, but at the same time, I wouldnt like to see more teams drop out. So I guess, what ever helps cutting cost at this time, is the right way to go.

[FerrariFan63]

I guess that is true. But, would standard engines introduce a significant cost cut compared to the way engines are now? By the way, I am definitely not for the idea, but at the same time, I wouldnt like to see more teams drop out. So I guess, what ever helps cutting cost at this time, is the right way to go.

I don't like to see engines or other components standardised. But I must admit that I can't see many other ways of truly cutting costs. It will always be impossible to cut costs by imposing budget constraints, as a lot of the cost goes on research, and a company could always sponsor a F1 team by providing them with products at production cost where the research is already paid for. So the only solution is to change F1 so that spending more money is no longer an advantage.

One way of doing this would be for all designs for parts used in F1 races to be made public knowledge within two weeks of their use. So that teams could piggy-back on the R&D of other teams, and still field good cars, even if they have very small R&D departments themselves. Teams would still be able to get a small advantage by developing something, which other teams would still need to learn to integrate into their own car or engine. But the advantage would be typically be small and last a short time.

[Matkins]

I dont think anyone likes having a standard engine rule, but at the same time, I dont think people like seeing big teams, such as Honda, leave F1 because of what is happening with the world's economy. It is a fact that people dont like change, but at this time, a standard engine to reduce costs tremendously is the right move. I hope that this rule doesnt last too long though, and that it does not restrict the constructor competitiveness in F1. Furthermore, I hope that after the economic crisis, and/or after teams are again able to afford the expenses that they had in recent years, the standard engine rule will be removed. We'll see what happens.

what would the point in a team like Honda competing if the engines were standerdized.

and even if they did take the cosworth engine it wouldn't reduce costs that much so they could still afford to compte.

its a stupid idea and mosley needs to stop getting involved.

How much does a team spend on developing an engine throughout a season?

not much considering their frozen at the moment.

I'm pretty sure that the vast majority of a teams budget is actually spent on the engines. I'm just trying to find the source to back this up.

[Matkins]

One way of doing this would be for all designs for parts used in F1 races to be made public knowledge within two weeks of their use. So that teams could piggy-back on the R&D of other teams, and still field good cars, even if they have very small R&D departments themselves. Teams would still be able to get a small advantage by developing something, which other teams would still need to learn to integrate into their own car or engine. But the advantage would be typically be small and last a short time.

I really like that idea. It would especially save McLaren costs as they wont have to fork out obscene fines for "spying".