Honda, Toyota and Porsche have each suffered from sliding car sales as the auto industry downturn worsens.

Honda slashed its full-year forecast Friday after reporting a 90% drop in profit for the three months to Dec. 31, the third quarter of Japan's fiscal year.

Honda Motor issued its fourth profit warning in six months yesterday and said it expected slumping sales and a rise in the yen to push it into a Y333bn ($3.7bn) operating loss in the current quarter.

Honda Motor Co., the first major Japanese automaker to report quarterly earnings, slashed its full-year forecast Friday after reporting a 90 percent drop in profit for the three months to Dec. 31, the third quarter of Japan's fiscal year.

Workers at Honda's Swindon factory made the last cars on Friday before a four-month shutdown caused by a sharp fall in worldwide sales.

Some 4,200 auto workers at Honda's British plant worked their last shift on Friday before a four-month layoff as the Japanese carmaker seeks to cut costs.

Honda Motor Co. said Friday that its net profit dived 89 percent in the fiscal third quarter as demand for cars slumped.

Honda lowered its profit forecast for the fourth time this year, foreshadowing what is expected to be a dismal earnings season for Japanese automakers.

Honda Motor Co. slashed its annual profit target by over half Friday as profit tumbled 90 percent in the latest quarter, hit by rising costs, a stronger yen and falling sales in key markets.

Workers at Honda's Swindon factory made the last cars on Friday before a four-month shutdown caused by a sharp fall in worldwide sales.