PARIS, June 24 (UPI) -- Teams that had threatened to break away from Formula One racing agreed to remain in the series Wednesday and claimed a victory in the showdown.
Max Mosley,president of Formula One's governing body (FIA), said he would immediately step away from the day-to-day operation of the series and would officially resign in October when his contract expires.
Eight of the teams involved in Formula One, including the powerhouse Ferrari organization, announced this month they would create their own racing series.
Their chief complaint was a proposed budget cap. The cap was thrown out in the agreement that was reached Wednesday, but Mosley said the teams had agreed to an unspecified reduction in costs.
"The basic news is that there will be no split," Mosley said. "We've reached agreement on a number of items. In particular, we've reached agreement on reduction of costs. We've had significant help from the teams. The objective is to get back to early 1990s levels within two years."
The agreement will keep the teams in Formula One through 2012.
Ferrari President Luca di Montezemolo said the would-be breakaway teams got all they wanted in the agreement.
"The FIA's council has today approved all our proposals," he said. "The objective is to avoid continuous changes decided by one person alone."
McLaren, BMW Sauber, Renault, Toyota, Red Bull, Toro Rosso and Brawn GP were also involved in the abbreviated split with Formula One.
