Subaru has postponed the launch of its diesel-engined Impreza indefinitely, due to massive fluctuations in exchange rates.
International Motors, Subaru's official UK importer, says it has no choice but to delay the diesel model until the Yen rate drops.
'At the current rate, we would have to charge vastly more than we can justify for the diesel Impreza if we were to make a profit,' said a spokesman.
Takeo Fukui, Honda's chief executive, has already called on the Japanese government to stabilise the Yen after the company announced that it could make a loss in the second half of 2008.
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