Ferrari: F1 "slowly going to die" without ideas like cost cap

The cost cap will mostly cover the development of chassis but will crucially not affect things like power unit development or the salaries of drivers. Each team will have $175 million to play with, forcing top teams to continue their operations on a much smaller budget to create a more level playing field.

While the traditional top teams like Ferrari were initially much against the idea of a cost cap, Camilleri is now all for it, as he even says it should be encompassing more departments of teams in the future.

"I think we've reached a relatively good compromise in terms of the cost cap, which today applies to the chassis," he was quoted as saying by Autosport.

"We've been in favour of it because we think it's good for the economic sustainability of Formula 1."

It is worth noting that when the idea of capping each team's spending was initially introduced, Ferrari went as far as threatening to quit their F1 team. When Camilleri took over as CEO in the summer of 2018 after the sudden passing of Sergio Marchionne, however, the company's stance became much more relaxed.

"In time that budget cap should encompass more of the car, the power units, the drivers as well, various other things.

"Because ultimately if the sport is not economically viable, it's slowly going to die.

"So, we viewed it as our responsibility to ensure that it will be economically viable."

2021 will be the first time in F1 that spending will have a limit in the sport's history.