Ferrari feels Formula 1 needs to develop a stricter budget cap over time to reinforce the championship’s economic viability. Else, it is “slowly going to die”, reported autosport.com.

A budget cap of $175million will be implemented from 2021, but will not apply to engine development or driver salaries, while other exemptions such as the company’s top three earners will also be allowed.

On top of the new financial regulations and sweeping new technical and sporting rules for 2021, F1 owners have to strike new commercial deals with the existing teams as the current agreements are set to expire in 2020.

Ferrari CEO Louis Camilleri said before Christmas that its “credibility” meant wanting to ensure the ability to “innovate” remained while still being aware that costs needed to be reduced.

He said that eventually, even greater financial changes would be needed. “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.

“We’ve been in favour of it because we think it’s good for the economic sustainability of Formula 1. In time that budget cap should encompass more of the car, the power units, the drivers as well and various other things. Because, ultimately if the sport is not economically viable, it’s slowly going to die.”