Mosley to Cap Team Budgets

Formula one teams' individual operating budgets will be capped from the start of the 2009 season in an attempt to prevent the sport's costs spiraling out of control.

Max Mosley, the FIA president, has written to all the competing teams regarding planned cost reduction. It is believed that he envisages slashing the budgets of top spenders by 50% from their reputed current level of $550m (£280m). The FIA consultant Tony Purnell will chair a meeting in Paris on January 31 to put precise numbers to the planned reduction.

"These [cost-saving] objectives are likely to include low-cost, long-life, inexpensive running costs for independent teams and consistency with industry requirements for efficiency and low carbon emissions," said Mosley.

"Starting in 2009, there will be a cap on expenditure for all formula one costs other than engines, drivers and expenditure exclusively for promotion and marketing." He said team principals' remuneration would not be included in the cap.

Mosley's letter also plans for future engine regulations, with the teams having agreed on a five-year engine freeze from 2008 to 2012. No work on the current 2.4-litre V8 engines will be allowed in that period, although work on what power-unit will replace it from 2013 will begin within the next 12 months.

Meanwhile the former Toyota formula one driver Ralf Schumacher completed a promising test in a Mercedes CLK touring car at Estoril, raising speculation that he may drive in the German touring car series (DTM) in 2008. Norbert Haug, the Mercedes motor sport vice-president, said: "I have known Ralf since he was in formula three and for many years he said he'd like to try the DTM. I said he should wait until his current contract situation allowed it and this is the first opportunity."