Having got McLaren where he wants it, Max Mosley is continuing to turn the screws on the only serious other threat to his grand plan for F1, Ferrari, claiming that the sport can survive without the legendary Italian team.

Following the initial exchange of letters between Mosley and Ferrari (and FOTA) President Luca di Montezemolo, both subsequently leaked to the British media, the FIA President has raised the stakes by claiming that the sport doesn't the team which has contested all but 16 races since the Formula One World Championship began in 1950.

The two are at loggerheads over Mosley's determination to push through his plan for a budget-cap. While the Englishman appears hell-bent on ensuring that all teams accept his plan on his terms, di Montezemolo argues that such a plan would undermine the sport, and has therefore called for more time to discuss the numerous issues raised by such a proposal. As ever, Mosley is sticking to his guns, adopting a 'do as I say or get the hell out' attitude.

The sport could survive without Ferrari," Mosley told the Financial Times. "It would be very sad to lose Ferrari. It is the Italian national team. But the cost cap is here to stay.

"I hope, and think, that when a team goes to its board and says, 'I want to go to war with the FIA, because I want to be able to spend £100m more than the FIA want me to spend', the board will say 'Why can't you spend £40m if the other teams can do it?'"

The very fact that Mosley regards Ferrari's stance as "going to war with the FIA" gives some insight into the Englishman's thinking, while others will rightly claim that it is Ferrari's money to spend as it wishes.

Martin Whitmarsh and Frank Williams have already said that they agree with the need for a budget cap but fear the proposals will lead to a two tier F1, the capped teams free to virtually do as they wish in many respects, while the un-capped teams will be severely limited in almost every aspect.

At a time when many believe Mosley and Bernie Ecclestone are causing the first cracks to appear in the team's new alliance, FOTA will be meeting later this week to discuss the budget cap and other issues.