1992 Ford Escort Lx-e Sedan 4-door 1.8l on 2040-cars

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Ford, Renault, VW shareholder oppose French aid for PSA/Peugeot-Citro"en

Pots and kettles, glass houses and stones - that's a little of what we appear to have going on in the European car market. New reports say that that three European automakers have registered their opposition to a loan deal that PSA/Peugeot-Citroën is working on with the French government. Peugeot's finance arm, Banque PSA Finance, is struggling with its debts and has been downgraded by Moody's to its lowest investment-grade classification, one step above junk. This makes it more expensive for a potential buyer to finance a car through Peugeot. The last thing Peugeot needs is more difficulty selling cars in the tough European market, and the situation will only worsen if the bank's credit worthiness takes another hit.
A deal being worked on would have the French government offer €7 billion ($9B U.S.) in bonds to guarantee the bank's loans, which would give the institution some breathing room to manage its debts and lower its interest rates. Outside of that, a group of banks would provide other, non-guaranteed loans to the bank to further help its position. In exchange for state help, though, the government wants seats on Peugeot's board for worker representatives and a government liaison, along with factory and worker guarantees. The Peugeot family would maintain control of the company.
So what we have is government assistance being provided to a car company's finance arm, akin to the way General Motors' GMAC (now Ally Financial) and Chrysler Financial got help in their time of need. What we also have is Ford and Renault, and Germany's State of Lower Saxony, the second-largest shareholder in Volkswagen, voicing their concern about the proposal, because they say it could create an unfair competitive advantage for Peugeot. Everyone in Europe's down market is fighting for every sale, and if Peugeot gets help to keep its auto loan costs down, it figures to help buyers choose Peugeot or Citroën.

J Mays on the 2015 Ford Mustang

J Mays, head of design at Ford, may be retiring from the company after 16 years, but not before showing the world his swan song: the 2015 Mustang. Ford officially revealed its new coupe and convertible to the public at events around the world on Thursday, including a live unveiling on ABC's Good Morning America, and Mays was in attendance at the automaker's home event in Dearborn, MI, which is where we caught up with him for a few words about his new baby.
"It's a joy" to design the Mustang, Mays told Autoblog, adding that this sixth-generation coupe is his "favorite design so far." Of course, the 2015 model takes cues from all of the generations that came before it, but Mays said it was important to edit down the specific elements from previous models, leaving just enough off to let the customer "participate and fill in the blanks."
"If it doesn't sell itself, you probably aren't a Mustang fan."

Submit your questions for Autoblog Podcast #310 LIVE!

We record Autoblog Podcast #310 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #310
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