Finland's Marcus Gronholm held on after an outstanding recovery by world champion Sebastien Loeb to clinch his first victory in the Monte Carlo rally.

The Ford driver took the lead on Friday when France's Loeb was handed a five-minute penalty after he failed to complete the last stage of the day following a crash in his Citroen.

Loeb won five stages on Saturday and chased hard, but Gronholm managed to hang on to finish one minute one second ahead in the season-opening event.

Read more about the 2006 Monte Carlo Rally at http://www.theage.com.au/news/Sport/Gronholm-wins-first-Monte-Carlo-rally/2006/01/23/1137864831443.html.