Fiat says carmakers are ready to set up F1 alternative

All of the major European car manufacturers say they're ready to set up their own championship to rival Formula One.

Fiat's chief executive Paolo Cantarella says all of the members of ACEA - the European Car Manufacturers' Association - who participate in Formula One want to run their own alternative.

His comments are the latest move in the row over broadcasting rights to the Formula One Grand Prix series.

The possiblity of a rival championship was first suggested when a large stake in SLEC was bought by the German pay-per-view broadcaster Kirch.

SLEC controls Formula One and is part-owned by Bernie Ecclestone, the founder of the championship.

In a statement released by Fiat, Cantarella says: "As a result of recent developments and in the best interests of motorsport, it has been 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 had previously warned that ACEA members involved in the Formula One championship would consider setting up an alternative series if Kirch acquired control of SLEC.

ACEA members include BMW, which supplies engines for the Williams team: DaimlerChrysler, the driving force behind MacLaren Mercedes; Jaguar's parent company Ford; and Renault, which powers the Benetton team.

Cantarella had said in the past that control of Formula One by a single broadcaster would jeopardise the fundamental principles of the sport, which he said called for live and free transmission of the championship to a worldwide audience.

Fiat controls the Ferrari Formula One team.