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Crunch watch Jan 09: the auto industry in crisis

By Tim Pollard, Ben Pulman and Gareth Evans Motor Industry 30 January 2009 12:39 Friday 30 January 2009• Honda is about to close the Swindon factory for four months when Friday's shifts are finished; the shutdown will affect 2500 of the 3700 staff, who will receive full pay for two months and then 60% pay for the next eight weeks (BBC News)• Porsche has announced a sharp drop in sales and likely profits. It forecasts a 27% drop in 911, Boxster, Cayman and Cayenne sales to around 34,000 units in the six months to the end of January 2009 (Financial Times, subscription required)• Ford wants Washington to do more to stimulate car sales, after posting a record loss of nearly $14.6 billion earlier this week (Detroit News)• Honda's quarterly profit has crashed by 90% – forcing the Japanese car maker to halve its annual profit target (Detroit Free Press)Thursday 29 January 2009• Ford of Europe is a bright spot in the Blue Oval's quarterly results today, making $1.06 billion pre-tax profit in 2008 (up from $997m in 2007). It's the first profit of more than $1bn since 1989 (Automotive News Europe, subscription required)• Volvo suffered a 'disastrous 2008' with a pre-tax loss of $1.46bn.

Dodge Charger

The new Dodge Charger is longer, lower and wider than the model it replaces, but offers even more performance from its 5.7-liter Hemi V8, which now belts out 470bhp and the standard 2.7-liter Pentastar V6 also offers 292bhp and better economy. Although based on the previous models' platform, the car has been significantly reworked to enhance its driving dynamics with all-new suspension settings, but it also wears bolder sheet-metal. The interior, benchmarked against European models, features soft touch plastics, a single piece molding for the dash and better colors throughout the range.

Cautious welcome for fuel duty freeze

MOTORING groups have given a cautious welcome to Chancellor George Osborne's announcement of a freeze on fuel duty until May 2015. Both the AA and the RAC pointed out that Mr Osborne was already getting big sums from motorists in taxation. Professor Stephen Glaister, director of the RAC Foundation, said: "Transport is the single biggest area of household expenditure bar none and our own research shows that 800,000 of the poorest households are in transport poverty, spending a quarter or more of their income on running a car.