The Formula One Teams Association (FOTA) issued the following this afternoon:

The FOTA Executive Committee met today in Heathrow to further progress the cost reducing initiatives already developed. All the Members unanimously agreed a number of important principles and supported the process now established within FOTA.

The teams detailed and signed a comprehensive Aerodynamic Test Restrictions Agreement, effective in 2009.

Furthermore, the Teams agreed that they would develop and freeze low cost transmissions for the 2010/12 seasons which would have a six race life, priced at €1.5 million per season per team.

FOTA also reaffirmed its commitment to a €5 million engine supply from 2010 for independent teams, who have expressed their agreement with and support for this arrangement.

The FOTA Technical Regulations Working Group will now conclude the elimination of expensive materials and identify further opportunities to reduce the cost of components and systems which do not deliver performance differentiation. All of the Teams present wished to express their support for the entrant currently known as Honda and they will agree to any name change registered.

All of the Teams are committed to working together in a rational and systematic manner, within the framework of FOTA to effectively reduce the costs inherent to Formula One. The same approach will now be used to improve the spectacle of the sport, following the outcome of the FOTA commissioned market research.