When approaching sharp curves at high speed, smart drivers ease off the gas. Faced with spiralling costs, Formula One teams are taking a similarly sensible approach. The teams’ agreement this week to trim costs up to 50 per cent by 2010 is a sign that they understand the extent of the crisis facing the world’s most prestigious racing circuit.

Three months after Honda pulled out of F1, other owners and manufacturers remain under pressure to justify the millions of dollars they spend each year to gain the tiniest edge over rivals. Their agreement this week to limit the use of new engines and curtail expensive aerodynamic testing represents a kind of détente in the counterproductive arms race. Cutting costs will reduce pressure on manufacturers and provide breathing room for independent teams. It is no coincidence that Ross Brawn, the former Honda team manager, announced a management buy-out of the former Honda team only on Friday, a day after the F1 teams agreed to supply independent teams with low-cost engines and gearboxes.