
PARIS (AP) — A breakaway Formula One series was averted  Wednesday when Max Mosley ceded to the rebel teams' demand that a planned budget  cap be scrapped and the FIA president said he won't seek re-election.
 
Mosley will immediately take a back-seat role until his  16-year reign ends in October — a move that will help to end the acrimonious  atmosphere that has blighted F1 in recent months.
 
 
  
"There will be no split. There will be one F1 championship  in 2010," Mosley said at FIA's Paris headquarters.
 
"They've got the rules they want and they've got the  stability. We've got the new teams and we've got the cost reduction."
 
 
Mosley backed down on the voluntary $65 million budget cap  at the World Motorsport Council. Instead, teams were given a watered-down order  to reduce costs to early 1990s levels.
 
But the Formula One Teams Association, which instigated the  breakaway, had already implemented a series of cost-cutting measures themselves  this season amid the global economic downturn, restricting on-track testing and  the use of wind tunnels for aerodynamic testing.
 
Further efforts to create savings on engines and gearboxes  in the next three years had already been announced by FOTA in May to help  attract new teams. Campos Meta, Manor and Team US F1 will make their debuts next  season. Additional cuts are expected to be agreed to Thursday at a FOTA meeting  in Bologna, Italy.
 
"I am pleased FOTA's proposals have been endorsed and  approved by the WMSC today," said John Howett, FOTA's vice chairman and Toyota  Motorsport president. "We look forward to working with the FIA Senate to achieve  a prosperous and exciting future for Formula One and its millions of fans around  the world."
 
FOTA's members — Ferrari, McLaren, BMW Sauber, Renault,  Toyota, Red Bull, Toro Rosso and Brawn GP — opposed the budget cap because it  would have given those who signed up greater technical freedom than those who  refused, creating a two-tier championship next season.
 
"We're very happy that common sense has prevailed as I  always believed it would because the alternative was not good at all," said  Bernie Ecclestone, F1's commercial rights holder. "Everything is in good  shape."
 
The FIA also expects the teams to sign on to a new Concorde  Agreement, the confidential commercial document governing the sport.
 
Last weekend's British Grand Prix had been overshadowed by  the split between the FIA and FOTA members, some of whom were branded "loonies"  by Mosley after their decision to form a rival series.
 
Mosley announced plans to sue FOTA on Friday, but backed  down 48 hours later when he insisted that a deal was close.
 
What will help heal the rifts is the departure of the often  divisive Mosley after four terms. His leadership style was criticized as too  autocratic and was blamed by many of the teams for precipitating the split  between FOTA and the FIA.
 
Even as the crisis intensified over the weekend, Mosley was  still planning to run for a fifth term.
 
But he said Wednesday: "The teams were always ... going to  get rid of me in October. Whether the person who succeeds me will be more to  their taste than I am remains to be seen."
 
Mosley has been the president of the FIA, the international  automobile federation that governs Formula One, since 1993. FIA Senate president  Michel Boeri will effectively be in charge until the election.
 
"It is a great relief and that is going to enable me to  take a step back for the summer," Mosley said. "I will be able to look at  Formula One knowing it's peaceful and stable, and I will be able to stop — as  was always my intention — in October of this year."
 
"This for me is an enormous relief," Mosley added,  referring to "personal difficulties" he has faced.
 
His son, Alexander Mosley, was found dead at his luxury  apartment May 5 after an accidental drug overdose.
 
The 69-year-old FIA president, the son of former British  fascist leader Oswald Mosley, was at the center of a media frenzy last year when  a tabloid newspaper reported he took part in a sadomasochistic orgy with five  prostitutes in London. A video of the incident was widely circulated on the  Internet.
 
Mosley successfully sued the News of the World for  invasion of privacy.
 
The episode brought calls for Mosley's ouster as FIA  president, but he won an overwhelming vote of confidence to stay on.