Honda plant faces four-month layoff

There's no abating the credit crunch at the moment, and now it's hit the second biggest carmaker in Japan. Honda announced operating profits of £795m for October-December - yet that's down from a massive £2.14bn for the same period in 2007.

As such, the firm's Swindon plant will cease production for four months - to avoid stockpiling cars while buyers are staying away from forecourts - resuming on June 1st.

Honda is still looking to a rosy future, however, having just launched the Insight hybrid - which should hit UK showrooms in spring this year. But in the meantime, 4,200 staff will be affected - though it is understood none will be laid off, with all receiving full pay for the first two months, reduced to 60 percent until production resumes.

It is also reported that the Honda F1 racing team could get a Government bailout - after Honda controversially withdrew funding at the end of last season. Talks have already been held between team bosses and the Department for Business, Enterprise and Regulatory Reform. A cash injection could save hundreds of jobs.

It's not all doom and gloom in the market, though, as MINI has announced its 2008 sales were up by four percent despite the slump. The maker hopes to continue that pattern through 2009 with the release of the new MINI Convertible, which it expects will boost UK sales by 25 percent.

Mark Nichol