Jeremy in track support sent me a text this morning and told me about this.
Cosworth has won the tender to supply a low-cost engine and transmission package in 2010 and beyond, Formula One’s governing body announced on Friday.
In the wake of Honda’s shock departure from the sport, the FIA said in a statement that the news confirmed its fears about the current financial format, and sent a letter to team bosses.
It is revealed that the cost to teams wanting to use the un-badged Cosworth engine option will be $2m euros, plus 5.5 million euros each season.
“The annual cost will reduce if more (than four) teams take up the option,” FIA President Max Mosley wrote.
Teams not wanting to use the standard engine have ‘the right to build an engine themselves’, or a de-tuned version of their current 2.4 litre V8s, but must use a standard transmission supplied by Ricardo Transmissions, a British company.
Mosley said the measures will help small teams survive, and also pave the way for the replacement of more outgoing manufacturers, ‘as seems likely’ to be necessary.
He wants four teams to sign up the scheme by next Thursday, or the price may go up.
FIA Press Release
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.
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 FIA President has today sent the attached letter to all of the Formula One teams:
Further to my letter of 18 November, we have completed the tendering process and are now in exclusive negotiations with Cosworth together with Xtrac and Ricardo Transmissions 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 €1.97 million Euros and then €6.42 million Euros per season for each of the three years of the supply contract.