Silverstone, Britain  - Formula One is facing a seismic change after FOTA decided Friday to begin its own series following failure to reach agreement with FIA in the dispute over the way forward for motor racing's premium product.

FIA: FIA is the Federation Internationale de l'Automobile, the umbrella organization for international motorsport and association bringing together the world's leading motorsport organizations.

FIA was established in 1904, originally as the Association Internationale des Automobile Clubs Reconnus (AIACR), with headquarters in Paris. Its president is Max Mosley.

According to the federation, FIA consists of 219 national organizations from 130 countries, representing around 100 million members.

FIA governs and regulates the various motorsport classes including Formula One, the World Rally Championships and the World Touring Car Championships.

FOTA: The Formula One Teams Association is the union of eight Formula One teams (BMW-Sauber, Brawn GP, Ferrari, McLaren-Mercedes, Red Bull, Renault, Toro Rosso and Toyota).

The association was formed in September 2008 in Monza, Italy. Its president is Fiat president and Ferrari chief Luca di Montezemolo.

The organization was set up to give the teams a united voice in discussions with FIA and Formula One's commercial rights holder Bernie Ecclestone on issues such as regulations, marketing and distribution of income.

"FOTA has the objective to promote the development of Formula One and enhance its worldwide image and reputation," the association says on its website.

Two teams, Williams and Force India, were recently suspended from the organization for entering for the 2010 Formula One championships without conditions in the row with FIA over rules and funding.