The FIA believes that budgets have spiralled out of control in recent years and are unsustainable in the long-term. This is even the case for the major manufacturers competing in the sport.
 
As Mosley said: “Two, possibly three, manufacturers want to win by spending unlimited amounts of money. This approach has caused great damage to motor sport, most recently to IRL in America. We don't want it in F1. One manufacturer is spending a sum greater than half its total annual dividend. This is unsustainable and sooner or later the shareholders will notice."
 
As such, the new rules are designed to discourage financial profligacy and ensure than an independent team with ordinary commercial sponsorship (a budget of around $100 million) can compete with a car manufacturer prepared to spend in excess of $300 million.

Part of the attempt to reduce costs involves rules which allow independent suppliers to provide competitive engines to teams at a reasonable price. This is deemed necessary because the competing car manufacturers have failed to supply engines to independent teams despite promises to do so.
 
A number of other measures will also be introduced to reduce costs. New technologies which give a team an advantage for one season but which are then adopted by all teams for subsequent seasons at significant expense will be banned after the end of the first season. This will allow a team which discovers a new technology to benefit from it, but prevents the other teams then spending money on the same technology only to leave them all in exactly the same positions as before.
 
The minimum weight of each car will be reduced from 605 to 550kg, a move aimed to eliminate the cost of purchasing 55kg of very expensive high density ballast for each car and transporting it all over the world. Cars will also be safer without this extra weight.
 
Each engine will be subject to a rev limit of 19,000 rpm, with a possible increase to 20,000 rpm in consultation with the competing teams. A standard electronic control unit for engine and gearbox will be used at all times. Gear ratios will have a minimum thickness of 12mm to make the gearboxes more robust.
 
Other measures have been brought in to increase the potential for overtaking. The rear wing will be split in two. Research indicates that this will produce a wake in which the car behind will perform much better, thus facilitating overtaking.
 
Changes will be made to the bodywork regulations at the front of the car to make the car behave better in traffic. The maximum wheel diameter and width will be increased to provide more mechanical grip, which will compensate for reduced aerodynamic downforce and further facilitate overtaking.
 
Safety was also a major consideration when drafting the new rules. Changes to the bodywork regulations will reduce downforce while maintaining drag levels so as to avoid an increase in cornering speeds over 2006 levels. Tyre pressures may be adjusted by the driver while the car is moving, which will help problems related to tyres cooling down, especially during safety car periods.
 
In addition to the proposed Technical Regulations it is intended to make changes to the Sporting Regulations for 2008. These will be submitted to the World Motor Sport Council on March 22, 2006 and will include a single tyre supplier; three-event engines; four-event transmissions; weight penalties for early replacement of engine or gearbox; testing restrictions; and a limit of two cars per team at an Event.
 
Further changes will be introduced in 2009. In a cost cutting measure, each team will be allowed to make only two changes of bodywork after the start of the 2009 season. It is also intended to allow systems for energy storage and recovery (hybrid systems) from 2009, provided this can be done without causing budgetary difficulties for any of the competing teams.
 
All of the rules were put together following consultation with the sport’s stakeholders, including more than 90,000 fans from 180 countries worldwide.
 
 
The full 2008 Technical Regulations are available for download by clicking here.