Responding to the global economic crisis, Formula One's governing body said Friday it is

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preparing a series of ``radical proposals'' that

would slash racing costs and open the sport to smaller teams.

If adopted, the new rules would ``enable a team to compete for a fraction of current budgets but nevertheless field cars which can match those of the established teams,'' Paris-based FIA said in a statement. It did not elaborate on the measures or provide any details.

The proposals would not affect the established teams, the statement said, but would ``enable new teams to fill the existing vacancies on the grid for 2010.'' The proposals are also aimed at reducing the chances that teams would be forced to leave the championship.

The proposals are to be submitted to the FIA's World Council in March for approval.

The sport's automakers are reeling from the global financial crisis. Honda announced in December that it is pulling out of F1.

In January, Formula One teams unanimously agreed to a series of cost-cutting measures, including limits on expensive testing and a cheaper engine

for smaller teams starting in 2010.

The Formula One Teams Association agreed to the proposals, which were first announced by FIA in December.

FOTA also agreed to develop low-cost transmissions starting in 2010 that would be used for six races, and to supply low-cost engines to independent teams for less than $6.6 million per team per season.