Freezing conditions overnight meant that there was ice again on the remaining stages at Rheola and Port Talbot.
This was not ideal for rally leader Latvala, who had hoped for warmer conditions overnight for a better chance of holding Loeb at bay.
Loeb had been told by Citroën boss Olivier Quesnel to push for the victory as a third place for Sordo would be enough to clinch the manufacturers title.
After the first loop of Sunday's stages the gap was down to 1.4 seconds and a victory for Loeb was looking inevitable.
Loeb was then initially handed a ten-second time penalty for a jump start at SS18  which meant that Latvala took a slender advantage of 2.2 seconds into the last stage.
However, Loeb's pace was too strong and a further stage win meant that he won the rally by 12.7 seconds after his earlier time penalty was rescinded.
Latvala finished a disappointed second but believed that the battle with Loeb would make him mentally stronger for next season.
Sordo followed team instructions to drive carefully and finished third.
Petter Solberg maintained his fourth place and the remaining points positions remained the same, except for a late retirement for Henning Solberg which meant that Hirvonen claimed eighth place.
Wilson took the position of highest Brit position, ahead of Barry Clark.
Rossi continued his progression and finished in twelfth position, earning praise from Ford team boss Malcolm Wilson.
Freezing conditions overnight meant that there was ice again on the remaining stages at Rheola and Port Talbot. This was not ideal for rally leader Latvala, who had hoped for warmer conditions overnight for a better chance of holding Loeb at bay. Loeb had been told by Citroën boss Olivier Quesnel to push for the victory as a third place for Sordo would be enough to clinch the manufacturers title. After the first loop of Sunday's stages the gap was down to 1.4 seconds and a victory for Loeb was looking inevitable. Loeb was then initially handed a ten-second time penalty for a jump start at SS18  which meant that Latvala took a slender advantage of 2.2 seconds into the last stage. However, Loeb's pace was too strong and a further stage win meant that he won the rally by 12.7 seconds after his earlier time penalty was rescinded. Latvala finished a disappointed second but believed that the battle with Loeb would make him mentally stronger for next season. Sordo followed team instructions to drive carefully and finished third. Petter Solberg maintained his fourth place and the remaining points positions remained the same, except for a late retirement for Henning Solberg which meant that Hirvonen claimed eighth place. Wilson took the position of highest Brit position, ahead of Barry Clark. Rossi continued his progression and finished in twelfth position, earning praise from Ford team boss Malcolm Wilson.
2008 Wales Rally GB