Gentlemen

Formula One is becoming unsustainable. The major manufacturers are currently employing upto 1000 people to put two cars on the grid. This is clearly unacceptable at a time when allthese companies are facing difficult market conditions.

Also, with attention on energy problems world-wide, Formula One cannot afford to beprofligate in its use of fuel. Indeed, without the KERS initiative, some major sponsors mightalready have left.

The FIA is therefore inviting the teams to make proposals

• to reduce current levels of expenditure. New rules must ensure that the costs of themanufacturer teams come down by at least 50% and that the independent teamsbecome financially viable. Both must be done without affecting the spectacle in anyway;

• to extract more useful energy from less fuel. The target should be a (very challenging)50% reduction from today’s levels of fuel consumption by 2015, while maintainingcurrent speeds. The rules should encourage manufacturer teams to researchtechnologies which are road-relevant rather than Formula One-specific;

• to improve the racing, including rules to ensure that cars remain aerodynamicallyefficient when in close proximity to one another.

The matter is now urgent. We need proposals which we can turn into detailed rules. Thesemust be ready within three months and have the support of at least a majority of the teams,failing which the FIA will itself prepare new rules for 2011.

Please also see the attached note. Professor Goeschel has kindly agreed to hold meetings of FOMAC to discuss these issuesdirectly with the manufacturers.

Yours sincerely

Max Mosley