The International Automobile Federation says Formula One is facing its biggest crisis in 40 years and must act quickly to cut costs further.
Japanese manufacturer Honda has already pulled out of the sport due to the global financial situation, and there are fears the situation could deteriorate further.
The FIA president Max Mosley says it's by far the biggest crisis since he's been involved in the late 1960s.
He says for 2010 the FIA want to see the budgets come right down, to the point where the FOM money (television revenues and prize money) plus very modest sponsorship equals the cost of going racing.
Mosley says the sport, with teams like Honda spending an estimated $300 million last year, had become unsustainable some time ago.