Ferrari's Board of Directors, chaired by Luca di Montezemolo, held a meeting on Tuesday at their Maranello headquarters to discuss business matters, but high on the order were the recent decisions taken by the FIA's World Motor Sport Council regarding the controversial budget cap option beginning next year.
Under the 2010 regulations, teams opting to limit their budgets to 45 million Euros ($60m US) would enjoy much greater technical freedom than other teams, effectively creating a 'two-tier' series within Formula One.
Many teams find the matter unacceptable as it currently stands, and the FIA's deadline of May 29th in order to file entries for the 2010 championship only added pressure to an already volatile situation with some teams speaking of boycotts.
Today Ferrari has boldly stated that, unless common ground can be found, it will retire from Formula One at the end of the current season.
Speaking of the WMSC decisions, a Ferrari statement indicated that "for the first time ever in Formula 1, the 2010 season will see the introduction of two different sets of regulations based on arbitrary technical rules and economic parameters."
"The Board considers that if this is the regulatory framework for Formula 1 in the future, then the reasons underlying Ferrari's uninterrupted participation in the World Championship over the last 60 years - the only constructor to have taken part ever since its inception in 1950 - would come to a close."
A long-standing point of conflict has been the FIA's tendency to move ahead with its plans without - from the teams' point of view - taking the considerations forwarded by the teams under serious review.
"The Board also expressed its disappointment about the methods adopted by the FIA in taking decisions of such a serious nature and its refusal to effectively reach an understanding with constructors and teams," the Ferrari press release continued.
"The rules of governance that have contributed to the development of Formula 1 over the last 25 years have been disregarded, as have the binding contractual obligations between Ferrari and the FIA itself regarding the stability of the regulations."
The Formula One Teams Association is not against the principle of budget capping but many teams have been lobbying against the 'two-tier' system on the basis that the sport, like any sport, should have identical regulations for everyone involved. Now Ferrari calls for a change in the way F1 is governed as well.
"The same rules for all teams, stability of regulations, the continuity of the FOTA's endeavours to methodically and progressively reduce costs, and governance of Formula 1 are the priorities for the future," Ferrari affirm.
"If these indispensable principles are not respected and if the regulations adopted for 2010 will not change, then Ferrari does not intend to enter its cars in the next Formula 1 World Championship."
"Ferrari trusts that its many fans worldwide will understand that this difficult decision is coherent with the Scuderia's approach to motor sport and to Formula 1 in particular, always seeking to promote its sporting and technical values. The Chairman of the Board of Directors was mandated to evaluate the most suitable ways and methods to protect the company's interests," the statement concludes.
Ferrari driver Kimi Raikkonen is set to contest yet another professional rally, his third of the year.
