Carmakers pull out of deal to buy into Formula One](http://uk.sports.yahoo.com/040423/3/3fcp.html)
IMOLA, Italy (AFP) - Five top Formula One manufacturers have cancelled negotiations to buy into the sport and recommenced plans to introduce a rival series, it was announced.
The GPWC - made up of Ford, Renault, Ferrari, BMW and DaimlerChrysler - had been holding discussions with SLEC, the holding company which owns Formula One, in a bid to gain more revenue from their participation.
GPWC had threatened to create a breakaway series in 2008, when the current Concorde Agreement that governs Formula One expires, if they were not allowed to buy a stake in the sport.
SLEC, owned by three German banks and Formula One ringmaster Bernie Ecclestone, had held talks with the GPWC and a memorandum of understanding was signed in December 2003.
But discussions have failed to progress since and they officially collapsed Friday when the GPWC issued a statement.
“Despite all reasonable efforts to implement the memorandum of understanding between the GPWC and the shareholders of SLEC…GPWC has decided to end negotiations on the future structure of Formula One,” a statement read.
GPWC added that its decision was due to “SLEC shareholders’ failure to comply with key points agreed in the MOU.”
The move releases GPWC from the standstill provision in the memorandum of understanding and allows them to go ahead with plans to introduce a rival series.
Jurgen Hubbert, chairman of the GPWC, said: “When we realised that our commitment to implement the MOU was not met by the other parties, we have to make a decision in the best interests of the sport and end negotiations.”