Honda saved as teams reveal budget cuts

Nick Fry has confirmed the team formerly known as Honda will be on the grid for the start of the new Formula One season at the end of the month in Australia.

As a raft of new proposals were announced by the Formula One Teams' Association (FOTA) to preserve the sport's future, Fry gave thanks to the organisation for their help in saving his team.

Confirmation of a management buy-out is imminently due in the wake of Honda withdrawing from F1 at the start of December due to the global economic crisis. But without the assistance of FOTA, and they confirmed on Thursday a 50% cut in budget is to be enforced by 2010 compared to last year, the team due to be led by Ross Brawn would not be poised for action.

Asked whether without FOTA and all their cost-cutting proposals there would be no team this season, Fry replied: "In short, the answer is yes. It's correct to say our team has, and will, benefit from FOTA in the future in two ways.

"The first one is clearly the cost reductions that will help us enormously in the challenges our team will face in the next two or three years.

"But as important as the cost reduction is the level of support we have enjoyed over the last three months from all the teams.

"In particular, I would like to say that on the day Honda announced their withdrawal from the sport, we received personal support from (FOTA president) Luca di Montezemolo, and also from Ron Dennis.

"There has been an enormous amount of activity behind the scenes. Everyone here (FOTA) has helped us preserve our team, and myself, Ross (Brawn) and our 700 employees all thank them for that."

Included in the cost-cutting measures, notably from 2010 onwards, are a reduction in engine availability at five million euro (£4.45million) per team per season, gearboxes at 1.5million euro (£1.33million) and a standardised KERS. Also incorporated is a further 50% reduction in the spend relating to aerodynamic development, along with standardised telemetry and radio systems.

FOTA president Di Montezemolo confirmed the 10 teams are also poised to sign a new Concorde Agreement by March 18, while he also pointedly stated all manufacturers currently involved will remain in F1 until 2012.