Eight F1 teams announce breakaway series

"The teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 world championship," FOTA said after a meeting near Silverstone. "These teams, therefore, have no alternative other than to commence the preparation for a new championship which reflects the values of its participants and partners.

"This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders. The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series."

Fota said its efforts to remain part of Mosley's series had been hampered by the FIA's approach to negotiations.

"The FIA and the commercial rights holder have campaigned to divide Fota," the group said. "The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006.

"Despite this, and the uncompromising environment, Fota has genuinely sought compromise."

Amid the global economic downturn, Fota said it has already embarked on substantial cost-cutting.

The independent Brawn GP team only rose from the ashes of Honda after the Japanese automaker pulled out of F1 late last year as it was forced to focus on its core business. Yet now Button and Brawn teammate Rubens Barrichello occupy the top two spots in the drivers' standings going into Sunday's race.

"Fota is proud that it has achieved the most substantial measures to reduce costs in the history of our sport," the statement said. "In particular, the manufacturer teams have provided assistance to the independent teams, a number of which would probably not be in the sport today without the Fota initiatives. The Fota teams have further agreed upon a substantial voluntary cost reduction that provides a sustainable model for the future."

The drivers had already been preparing for radical developments to emerge from Thursday's Fota talks.

Two-time world champion Fernando Alonso made it clear in the paddock on Thursday that he would leave F1 if his Renault team pulled out of F1.

"For me the new Formula One would be unattractive, with the small teams and no drivers," Alonso said. "We want to compete with the best teams in the world, the maximum technology: We all want to compete with the best drivers.

"If this is not what Formula One is about next year, then it will be another category with that. I won't retire, I will drive for another championship."

AP