Carmakers to set up rival F1 series

Europe's major carmakers said on Wednesday they would set up a rival Formula One motor racing championship after a long-running row over broadcasting rights in the sport.

The announcement was made in a statement by Paolo Cantarella, chairman of both the European Automobile Manufacturers Association (ACEA) and Fiat, which owns the Ferrari world championship-winning team.

"As a result of recent developments and in the best interests of motor sport, it has been unanimously agreed to set up a joint company, the purpose of which will be to establish, as soon as possible, a new open-wheels single-seat racing car series," Cantarella said.

ACEA's members include Fiat, Ford, BMW AG, Renault and DaimlerChrysler, all of which have interests in Formula One racing teams.

The association has been trying to block a bid by German media group Kirch and its partner EM.TV to gain a greater hold on the rights to broadcast Formula One races.