Ferrari will not participate in Formula One after the 2009 season if the FIA go through with plans to impose a budget cap.
Italian team make decision in response to FIA's budget cap plans
Ferrari have announced that they will quit Formula One at the end of the 2009 season if a budget cap is introduced into the sport.
In an effort to cut costs, the International Automobile Federation (FIA) are planning to limit the amount teams can spend from 2010 onwards.
The proposal, which would see a ceiling set at £40 million, would mean those capped teams competing would be able to operate with far greater technical freedom than those with unlimited budgets.
Following a meeting of their board of directors in Maranello, Ferrari have reacted by stating they will not compete if a cap is in place.
Statement
"We confirm our opposition to the new technical regulations adopted by the FIA and do not intend entering our cars in the 2010 F1 Championship," a statement from Ferrari read.
The Italian team believe the plans put forward by the FIA, which is headed by president Max Mosley, would lead to a two-tier championship.
The statement released also criticised the FIA's decision-making process, claiming that teams have not been properly consulted.
"The rules of governance that have contributed to the development of Formula 1 over the last 25 years have been disregarded, as have the binding contractual obligations between Ferrari and the FIA itself regarding the stability of the regulations," the report said.
"The same rules for all teams, stability of regulations, the continuity of the FOTA's endeavours to methodically and progressively reduce costs, and governance of Formula 1 are the priorities for the future.
"If these indispensable principles are not respected and if the regulations adopted for 2010 will not change, then Ferrari do not intend to enter our cars in the next Formula 1 World Championship."
Ferrari are the only team to have contested every season of the world championship since the modern format was introduced in 1950.
They are not alone in being against the changes, though they are the first to make a statement of intent ahead of the May 29 deadline for 2010 entries.
