22 May 2001: Fiat, BMW, DaimlerChrysler, Ford and Renault are to set up and operate an international car racing competition to rival Formula One.

This follows fears that the German broadcasting and multimedia giant Kirch Group AG will restrict television coverage of F1 races to subscription television.

Fiat's managing director Paolo Cantarella, president of the Association of European Carmakers (ACEA), will head the new company. Fiat says the car makers’ aim is to promote the interest of the sport, to make sure that the races are made freely available to the broadest possible public world-wide, and ensure that the income generated will benefit mainly those who invest in F1 in order to render the competition possible.

Races, using the same kind of cars as in Formula 1, are due to begin in 2008 at the latest, maybe even earlier. Motorsport regulator FIA says that it could approve the new series if it conforms to international regulations and safety requirements.

Kirch Group spokesman Hartmut Schultz said at the weekend that there will be more talks involving the owners of F1 broadcasting rights to evaluate this new development. German antitrust authorities have approved the group taking a controlling stake in Slavica Ecclestone Corporation (SLEC), founded by Ecclestone and which holds all Formula One commercial rights until 2010. TW