Ecclestone's empire under threat

Bernie Ecclestone faces the collapse of his Formula One empire with the announcement by Europe's biggest car makers that they are about to set up their own race series.

Renault, BMW, Mercedes, Fiat and Ford have announced they are going their own way and taking the Grand Prix world's most important teams and drivers with them.

Between them they own or control all the top teams - including McLaren, Williams, Jaguar and Ferrari - and they are furious that they are not being allowed to buy a share of control in Formula One in which they have invested billions of pounds.

Instead, Ecclestone is preparing to allow the German pay-per-view TV company Kirch Group to take control of the sport in a deal worth £700 million to the family trust registered in the name of his Croatian-born wife.

If the car makers go their own way it will wipe out the business Ecclestone, Britain's sixth richest man, has built up over 30 years.

News that the Kirch deal had been waved through by the German authorities prompted the announcement by Paolo Cantarella, the chairman of the car makers group.

He said: "As a result of recent developments, and in the best interest of motor sport, it has been unanimously agreed to set up a joint company, the purpose of which will be to establish as soon as possible a new single-seat, open-wheel racing car series."

The sport's ruling body, the FIA, say the new championship will be given their blessing provided it meets all safety regulations.

The car makers believe that they are better off controlling their own future by ensuring races continue to be broadcast on terrestrial television.

Fortnightly audiences for Grand Prix are beaten only by the Olympics and the World Cup.