F1 manufacturers have agreed to supply power units to customer teams at a lower cost.
According to Autosport and Sky Sports, F1's four manufacturers -- Mercedes, Ferrari, Renault and Honda -- have agreed to reduce the supply cost of a 1.6 litre V6 power unit to €12 million per season. The new rules will ensure all teams are supplied with an engine and are expected to come into effect from the start of the 2018 season.
The amount of gearboxes permitted in one season will also be reduced to three. Once formalised, the regulations will remain stable until the end of 2020.
The news follows the two days of discussions in Geneva; the Strategy Group meeting on Monday and the F1 Commission on Tuesday. Manufacturers had until last Friday to put forward workable proposals to the FIA.
There has been an ongoing stand-off between the governing body and F1's manufacturers since Ferrari's decision to veto a cost cap on customer engines last year. That prompted FIA president Jean Todt and F1 boss Bernie Ecclestone to join forces to push for an alternative 'budget' engine aimed at alleviating costs for the smaller teams on the grid.
An engine and gearbox deal previously cost somewhere in the region of €20 million a year, with Todt's original cost cap proposal hoping to get that down to around the €12 million figure now agreed upon. The push for an alternative engine -- which even reached the tender stage -- saw F1's existing manufacturers agree to put forward an alternative proposal this month.
The reported agreement means Todt and Ecclestone will not need to force through changes, as they were given a mandate to do by the World Motor Sport Council in December.