FIA reveals Caterham, Marussia's financial struggles highlight needs to cut costs in F1

The FIA has revealed that Caterham and Marussia's financial problems highlight the need to cut costs in Formula One after the two teams went into administration this month and would not be taking par in Sunday's United States Grand Prix.

Earlier this year, the FIA abandoned plans for a budget cap after failing to get support from the teams, but in a statement, the sport's governing body said that it remains in favour of any initiative to help reduce costs.

However, the FIA did not expand on how it planned to do so, The BBC reported.

Marussia and Caterham's absence in Austin means only nine teams and 18 cars would be on the grid, the first time that has happened since Monaco in 2005. On Thursday, the FIA stewards that said the two teams were deemed to be in breach of the regulations, as they were not participating this weekend.

However, they added that in view of the teams' current financial circumstances no penalty would be imposed and have instead referred the matter to FIA president Jean Todt.

Former FIA president Max Mosley, whose own plans for a cost cap fell through when he was in office, said this week that the sport could lose more teams because of the high costs of competing.

Further plans to cut costs also failed to materialise earlier this year, but the governing body said that it remains committed to finding a solution, especially in light of Marussia's and Caterham's struggles.

The FIA added that these failings once again acutely raise the question of the economic balance of the Formula One championship.