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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.

Lexus GS 300h: Shanghai Motor Show

Offering much better economy than the GS 450h, it offers not only a viable alternative for private buyers looking for a bit of beautifully built Japanese luxury with lower running costs, but also makes the GS a much more appealing option for company car drivers – probably where most of the sales will be made. Lexus are aiming for Co2 emissions below 110g/km for the GS 300h (the IS 300h manages 99g/km) which will give headline economy around 60mpg – a third better than the GS 450h can manage. Power comes from the same hybrid drivetrain as the IS 300h, which means a 2.5 litre petrol mated to an electric motor and delivering 215bhp and o-62mph in around 8.5 seconds.

Video: Fiat creates café racer 500 for SEMA

Fiat is preparing a café racer-style 500 for this week's SEMA show by stripping down an Abarth version to take it "down to the essence of what you need to drive a car." The café racer philosophy of ‘more speed, less comfort' was born around the 1960s British 'biker scene and while initially focussed on increasing performance, quickly developed into a culture as concered with 'the show' as 'the go'. "It takes something like this to really get noticed at SEMA," says Craig Buoncompago, Project Manager at Fiat Product Design. "The Café Racer is really going to be one special car that you guys should really come and see." The 500's roof has been chopped, while also shorn of its door handles and being fitted with hot rod billet rims.