According to FIA President Max Mosley, Prodrive was selected as the 12th team because "Prodrive has the best combination of financial backing, technical capability and motorsport experience... Also, Prodrive's chief executive, David Richards has experience as a Formula One team principal."
In addition to the 11 existing teams, the FIA received applications from new teams vying for the 12th and final entry. Despite the heightened level of interest in Formula 1, Mosley indicated that the FIA were unlikely to increase the number of teams beyond the current limit of 12.
When asked about the newest team's plans, David Richards said, "An entry is just the beginning. We now have less than two years to build a team and put two competitive cars on the starting grid for the first race of the 2008 championship."
[Source: FIA, Prodrive]