Formula One's future is finally secure after the five rebel manufacturers' signed up with Bernie Ecclestone in Barcelona today.
The Grand Prix Manufacturers' Association of Renault, Honda, Toyota, Mercedes and BMW had stalled on committing to Formula One from 2008 to 2012, demanding more money and a bigger say in how the sport is run.
They threatened to set up a rival series if those demands were not met but a compromise has slowly been agreed which will see the GPMA ditch those plans and stay in Formula One.
GPMA chairman Burkhard Goschel said: "Today's memorandum of understanding constitutes a comprehensive solution for the future of the sport. We can build on this result and look forward to jointly grow Formula One and make it an even bigger sporting spectacle than ever before."
Ecclestone added: "I've never been at war with anybody so it's no peace for me."
The 12 teams will now take their share of 50 per cent of Formula One's vast commercial income from 2008, when a new Concorde Agreement will come into force while talks over the sport's new rules continue.
The details of a new Concorde Agreement have yet to be agreed, with governing body the FIA pushing for massive cost cuts. Today's memorandum of understanding is the first step to finalising the future shape of Formula One and confirms all current teams, and new entrants Prodrive, will be on the grid.