AGNY-COURS, France, July 16 - Formula One's governing body has dismissed as "wholly inadequate" an offer by car manufacturers to create a 40 million euro ($50.70 million) fund to help independent teams secure affordable engines.

At the same time, champions Renault disassociated themselves from the proposal.

A statement issued earlier by the Grand Prix Manufacturers' Association (GPMA) -- grouping BMW, Renault, DaimlerChrysler, Honda and Toyota -- said the fund would help cut costs considerably for smaller teams over the next four years.

"The engine fund provides the opportunity for an independent engine supplier to plan a structured development programme and ensure its engines remain competitive and affordable," the statement said.

"This initiative is without precedent in motor sport and represents a significant effort to reach out to all teams, in the best interest of the sport."

Renault said the GPMA statement was released without their agreement and they were not a party to it.

The manufacturers made the offer as part of attempts to stave off a total freeze on engine development from 2008, when the Concorde Agreement governing the sport expires.

The governing International Automobile Federation (FIA) has said that next season will start with engines returning to the developmental stage they were at in June this year.

Next year remains open however, and the competition between manufacturers threatens to see up to $1 billion spent on engine developments that will then have to be discarded.

The manufacturers sought a compromise at the U.S. Grand Prix at Indianapolis, suggesting bringing forward the engine 'homologation' by a year in exchange for being allowed to make one annual update on a limited range of components in future.

However there was no unanimous agreement of the 12 teams entered for 2008 by a Sunday deadline set by the FIA.

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