The Formula One Teams Association, after months of wrangling with the FIA, has announced that it plans to form a breakaway series for the 2010 season.

The decision by Brawn GP, Ferrari, McLaren, Renault, Toyota, BMW, Red Bull and Toro Rosso to leave the official Formula 1 World Championship follows the failure by the teams and the FIA to reach an agreement over the budget restrictions that had been proposed by the governing body.

Fota has said that the new series will, ‘have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders’, adding, ‘The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series.’

The rest of Fota’s statement:

‘Since the formation of Fota last September the teams have worked together and sought to engage the FIA and commercial rights holder (Bernie Ecclestone), to develop and improve the sport,”

‘Unprecedented worldwide financial turmoil has inevitably placed great challenges before the F1 community.

“Fota is proud that it has achieved the most substantial measures to reduce costs in the history of our sport.

‘In particular, the manufacturer teams have provided assistance to the independent teams, a number of which would probably not be in the sport today without the Fota initiatives.

‘The Fota teams have further agreed upon a substantial voluntary cost reduction that provides a sustainable model for the future.

‘Following these efforts, all the teams have confirmed to the FIA and the commercial rights holder that they are willing to commit until the end of 2012.

‘The FIA and the commercial rights holder have campaigned to divide Fota.

‘The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006.

‘Despite this, and the uncompromising environment, Fota has genuinely sought compromise.

‘It has become clear, however, the teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 world championship.”