The letter from Max Mosley

Following my letter of November 18, we have completed the tender process and are now in exclusive negotiations with Cosworth, Xtrac, and Ricardo Transmissions (XR) to provide a standard F1 engine starting in 2010. The future F1 engine will be a standard engine, while the transmission will be a joint effort by two companies that already supply transmissions to several teams.

The cost for each team will be £1.68M (€1.97M), 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 the signing of four existing teams and includes full technical support at all races and official tests, as well as 30,000 km for private testing sessions. The annual cost may decrease if multiple teams choose this option, for example to £4.99M (€5.84M) per team with eight teams. It will also allow further reduction of the 30,000 km of testing if necessary.

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

– Ci-dessus.

– Le droit de construire elles-mêmes un moteur, identique à ce qui précède, après avoir fournie toutes les informations techniques nécessaires.

– Le droit de continuer à utiliser leur moteur existant, avec l’interdiction actuelle sur le développement et l’exigence de parité pour les moteurs encore en place (en notant que le moteur fourni deviendra le moteur de référence pour la production et pour d’autres indicateurs de performance et aucun moteur sera autorisé à dépasser ces indicateurs).

Teams choosing one of these last two options will nevertheless be able to use the XR transmission.

In combination with the cost reduction program for the chassis, Grand Prix weekends, and team factories, as indicated in my letter of November 18, these provisions have a number of advantages.

This includes:

– Permettre l’indépendance des équipes de survivre dans le difficile climat économique, de faciliter le remplacement d’un fabricant si une écurie subie des pertes supplémentaires;

– Éviter toute modification apportée au spectacle de la F1 à la technologie actuelle.

These provisions exist based on the principle that at least four teams enter into these contracts for the use of the standard engine described above, no later than the close of business on December 11, 2008. In the event that fewer than four teams sign up, the FIA may still implement its provisions, but the offer price will vary. The supply contracts will be with Cosworth, but first and foremost, teams are requested to communicate their intentions to my office.

Sincerely

Max Mosley