Formula One: Engine-regulation Talks Stall Abruptly

Talks over future engine regulations stalled dramatically yesterday, just when the major car manufacturers and motor racing's governing body believed they were close to resolving a three-year-old impasse.

The FIA and its president Max Mosley have insisted that formula one must use "fixed-specification engines" from all the competing manufacturers from 2008 to 2011, to rein in the manufacturers' multi-million-dollar budgets and give smaller independent teams a better chance to compete.

BMW, DaimlerChrysler, Honda, Renault and Toyota offered to create a €40m fund to help an independent engine builder fund a programme to provide subsidised engines to the smaller teams, but the proposal apparently contradicted a previous offer made at Indianapolis and did not have unanimous support. This effectively threatened the governing body with possible legal action.

"Due to the various inconsistencies, irregularities, breaches of agreements shown by the FIA over the engine issue, the GPMA manufacturers wish to reserve their position and refrain from any speculation," the manufacturers' statement read. The FIA responded: "The result of this is that the rules will stay as published and agreed."