Formula One plunged into its biggest crisis in 60 years on Friday with eight of the 10 teams announcing plans to set up their own championship.

The teams association FOTA said BMW-Sauber, Brawn, Ferrari, McLaren, Red Bull, Renault, Toro Rosso and Toyota were united in a decision that would split the sport in two if carried through.

"The teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 world championship," said a statement.

"These teams therefore have no alternative other than to commence the preparation for a new championship which reflects the values of its participants and partners."

The governing International Automobile Federation (FIA) had set a Friday deadline for teams to make their entries unconditional or risk exclusion in favour of would-be new competitors.

The eight FOTA teams had submitted entries conditional on the 2010 rules, which include a controversial budget cap, being rewritten and the signing of a new commercial agreement governing the sport.

Attempts by both sides to reach a compromise failed, with the FIA accusing teams earlier in the week of wanting to take over the sport.

LOWER PRICES

FOTA said their new series would encourage more entrants, listen to the wishes of fans and have transparent governance.

The teams, who are due to race in the British Grand Prix on Sunday, also promised "lower prices for spectators worldwide, partners and other important stakeholders.

"The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series," it added.

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