Motor racing-F1 teams edge closer to crisis conclusion

By Alan Baldwin

MONACO, May 23 (Reuters) - Formula One teams are making headway but still have some fundamental differences to resolve with the governing body in a standoff over the 2010 rules, team principals said on Saturday.

The Formula One Teams Association (FOTA) met again at the Monaco Grand Prix after three hours of talks with International Automobile Federation (FIA) president Max Mosley on Friday. Further meetings were scheduled for Sunday.

The crisis has been hanging over the sport for weeks, with champions Ferrari and some other manufacturers threatening to walk away at the end of the year if the rules are not rewritten.

The FIA wants to introduce an optional 40 million pound budget cap, with those accepting it granted greater technical freedom. Ferrari say that would lead to a two-tier championship that is unacceptable. They want a gradual reduction in costs instead.

The teams have been set a May 29 deadline to sign up for the championship, with some would-be new teams already registering their interest.

"I think there's a general acceptance that Formula One should be played out to one set of regulations, but there are a lot of other issues," McLaren team boss Martin Whitmarsh told reporters.

"There were some constructive parts of the meeting yesterday, but not everything is agreed.

"There is a lot of pressure on all sides," he added. "We can't spend months negotiating and coming to a conclusion. We need to do it pretty damn quickly.