Italian team's threat sets battle lines

LONDON: Ferrari's threat to pull out of Formula One at the end of the year unless the governing body backs down on a planned budget cap sets the stage for what will be heated talks at the top of the sport over the coming weeks.

While the step appears dramatic, it is part of a war of wills between International Automobile Federation (FIA) president Max Mosley and the Formula One Teams Association (FOTA) led by Ferrari president Luca di Montezemolo.

Tuesday's development sets out the battle lines before a likely meeting between the two men ahead of next week's Monaco Grand Prix.