Concorde Agreement extended to 2012

The FIA, Formula One Management (FOM) and Ferrari jointly announced on January 19th that they have decided to extend the Concorde Agreement from 2008 until 2012. Until now Ferrari, as part of the Grand Prix World Championship (GPWC) manufacturers group, seemed intent on developing the rival series set to breakaway from F1 in 2008. However, many people believed that it was only a matter of time before an agreement was reached to prevent the split.

"We are very pleased to have reached this agreement with Formula One's commercial rights holder and the oldest team in the Championship," said FIA President Max Mosley in a statement. "The agreement is significant because it will ensure the future development of the FIA's most important Championship."

Bernie Eccelstone, FOM President added: "Formula One Management are delighted that this agreement is in place and that the future of Formula One has now been stabilised."

President Luca di Montezemolo said the agreement was what Ferrari had been hoping for. "It is important and also pleasing that the FIA, which is the governing body and FOM, which represents those who have organised Formula One in these past years and Ferrari, which is the only team to have taken part in the World Championship, without a break, since its inception, have put out a strong message of stability for the future of Formula One. This agreement is in line with what Ferrari had hoped for, for a long time," he stated.

Ferrari deciding to stick with Formula One looks likely to put an end to GPWC, which consisted of Ferrari, Mercedes, Renault and BMW. Ford ceased its participation when Jaguar was withdrawn from F1. Ecclestone said the new Concorde Agreement resolved many of the issues that GPWC were unhappy about.

"The parts of the Concorde Agreement they were concerned with will be dealt with and they are going to get more money," he told the BBC. The sum is reported to be an extra $500m over the next three years. The other teams have not yet signed but Ecclestone said he had spoken to them and the reaction was "positive".