Gronholm takes early Portugal lead

The world championship leader had earlier moved 10 seconds clear of the field despite an error in SS2. Although his Ford Focus sustained a puncture and suspension damage, Gronholm was still second fastest through the stage and then won SS3.

However, his battered right-front shock absorber then gave way completely in S. Bras de Alportel, costing Gronholm 10 seconds and allowing Loeb to regain significant ground.

The world champion had struggled with understeer in the opening stages and ran only fourth initially before surging up the order in SS4.

"I was pushing really hard, perhaps taking too big risks sometimes, really at the limit in some places," Loeb said.

"They were really difficult stages this morning against Marcus. He was really fast, but now it's much better and we'll continue to fight."

Mikko Hirvonen had held second after SS2, but a slight mistake in SS3 dropped him behind Petter Solberg. Although he repassed the Subaru in SS4, he was jumped by Loeb in the same stage.

The Finn is still within 4.9 seconds of his rally-leading teammate, however, and remains very positive.

"It's good fight, there's still a long way to go," he said. "I'll catch them!"

Fourth-placed Solberg is only eight seconds behind Gronholm and is also confident of fighting for the lead this afternoon.

"It's been okay, the times are good," he said. "We can go a lot quicker actually. This is looking really good. We just have to wait and see."

The flying top four have left the rest of the field behind, with the consistent Dani Sordo currently holding fifth, 33.8 seconds adrift.

Subaru's Chris Atkinson is already over a minute off the pace. He was initially puzzled by his lack of speed, but felt he might have found the answer by SS4.

"I haven't been this slow for a long time, so it's quite strange," he said. "I think I know the reason, we just need some time to fix it."

Pos  Driver        Make        Time
 1.  Gronholm      Ford        44:19.9
 2.  Loeb          Citroen     + 2.6
 3.  Hirvonen      Ford        + 4.9
 4.  Solberg       Subaru      + 8.8
 5.  Sordo         Citroen     + 33.8
 6.  Stohl         Citroen     + 1:00.3
 7.  Carlsson      Citroen     + 1:02.0
 8.  Atkinson      Subaru      + 1:08.7
 9.  Latvala       Ford        + 1:11.5
10.  Gardemeister  Mitsubishi  + 1:20.5