The season-ending Rally of Wales is in danger after the Welsh Assembly Government withdrew a reported 2 million pounds ($3 million; 2.28 million) in funding.
International Motor Sports Limited, which organizes the Oct. 23-25 British leg of the World Rally Championship, said on Wednesday the Welsh Assembly had given no warning of its decision. The IMS said it planned to take legal action for breach of contract.
"Our preparations for October's Wales Rally GB are progressing well, with the event scheduled to be launched to the media and public by the end of April," said IMS chief executive Andrew Coe. "Therefore we are shocked and disappointed that the Welsh Assembly Government has taken this position, without even any prior notice or discussions between us, particularly as there is a firm and binding contract in place until 2011."
This year's Wales Rally will be the 77th Rally of Britain, which has been entirely based in Wales since 2000.
