Toyota F1 President John Howett has threatened not to lodge an entry for his team in the 2010 world championship unless significant changes are made to the regulations, following the approval of the controversial £40m budget cap by the FIA's World Motor Sport Council last week. Toyota is one of a number of teams that will be unable to run under the budget cap for 2010 due to the vast size of its workforce, and with the technical freedom offered to the budget capped teams likely to result in savings of four of fives seconds per lap, teams with unlimited expenditure will be unable to compete under the current rules.

Speaking to British website autosport.com, Howett said that his team will not be submitting an entry as the rules stand. “Under the rules as they are published, we cannot submit an entry,” he is quoted as saying. “There are concerns about the governance process within the sport, that there are clearly prescribed areas of discussion within the sporting and technical rules and we don't feel they are being complied with.

“From Toyota's perspective there are a number of concerns that really need clarifications before we commit to the future. We want to be here. We believe we have been a good corporate citizen within the F1 environment, but now we must reflect long and hard on what we do in the future.”

A moveable rear wing, four-wheel drive, more powerful KERS and no rev limit on engies are among the key advantages being offered to the capped teams for 2010, which, along with unlimited testing, engine and gearbox usage, will see the uncapped teams fall significantly behind in performance terms. The Formula One Teams' Association (FOTA) is currently preparing an official response to the FIA over the controversy, as they look to avoid the impending 'two-tier' championship, but with the FIA looking to grow the grid size to 26 cars for next year, compromise will be difficult to come by.

Teams wishing to compete in 2010 will have to submit their entry between May 22 and 29, although late entries are considered. When asked by autosport.com to clarify his team's stance, he said: “I would say it is very likely we won't enter unless something changes significantly.”

While Mercedes-Benz has committed to the sport for the future, other manufacturers such as Ferrari and BMW Sauber are understood to be considering their future in F1 as a result of the budget cap rules.