Formula One has come to an agreement on future power unit regulations in order to limit costs, ensure supply to all teams, encourage performance convergence and improve noise.
Power unit regulations have become a political battle ground in recent years as Mercedes has looked to protect its advantage while rivals have sought to catch up. Costs have also increased dramatically for smaller teams since the introduction of the V6 turbos in 2014, with the FIA keen to bring the price of engine contracts back down to manageable levels.
The latest breakthrough -- referred to as a "global agreement on power units" by the FIA -- will extend through to 2020 and comes just one day before the rules for 2017 needed to be finalised. The following agreements have passed through all the levels of the F1 governance structure and will be included in the 2017 and 2018 sporting and technical regulations.
Agreement has been reached on a significant reduction in the price of power unit supply to customer teams and a reduction in cost to manufacturers over the coming years.
In 2017 the power unit price for customer teams will be reduced by €1million per season compared to 2016.
From 2018, the annual supply price will be reduced by a further €3 million.
Cost reduction on power units will be driven by changes to the Sporting and Technical regulations in 2017 and 2018, with a progressive reduction of the number of power unit elements per driver per season.
Supply of power units to customer teams will be ensured, as the homologation procedure will include an "obligation to supply" that will be activated in the event of a team facing an absence of supply.
The new agreement includes a package of measures aimed at achieving performance convergence.
Additionally, constraints on power unit part weights, dimensions and materials, and on boost pressure will be introduced in 2017 and in 2018.
Manufacturers are currently conducting a promising research programme into further improving the sound of the current power units, with the aim of implementation by 2018 at the latest.