2012 Volkswagen Jetta Gli Autobahn Pzev Automatic 4-door Sedan on 2040-cars

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EU formally questions French government assistance of Peugeot's finance arm

Recently, the finance arm of PSA/Peugeot-Citroën was in such debt trouble that it was pricing itself out of the car loan market. The rates it was paying to service its debt, which was rated one step above junk, were so high that it was forced to charge car-buying customers higher rates than they could find elsewhere. This was adding to Peugeot's already impressive woes by sending revenue out the door to competitors.
Two months ago a deal was worked out with the French government whereby the state would provide 7 billion euro ($9 billion USD) in bonds to guarantee the finance arm's loans. The French government could nominate someone to join the Peugeot board, Peugeot would guarantee more French jobs, and on top of that deal, other banks would provide non-guaranteed loans. The government would take no equity stake in the car company.
Although not yet finalized, the arrangement is meant to create some breathing room for Peugeot Finance to lower its interest rates for customers, and a government-nominated board member, Louis Gallois, was recently named to Peugeot's supervisory board. The arrangement was also openly questioned by at least three competitors: Ford, Renault - which is 15-percent owned by the French government after it received state aid - and the German state of Lower Saxony, itself a 15-percent shareholder in Volkswagen.

Volkswagen offers Beetle Classic, priced from $20,195*

The current Volkswagen Beetle already tries to be a fairly retro-looking ride by cribbing styling elements from the iconic original. However, for the new, limited-edition Classic model, VW is hopping into the time machine to grab even more vintage cues. The company is even cutting the price, perhaps in hopes of turning around flagging sales this year. You don't need to wait long for any of these upgrades either because the automaker says that the Classic goes on sale this week for $20,195, *excluding the $820 destination charge. That's $100 less than a bone-stock Beetle.
Starting as a standard Beetle with VW's 1.8-liter turbocharged four-cylinder with 170 horsepower and 177 pound-feet of torque, the Classic edition comes with a six-speed automatic and then adds some retro flair. It includes new vintage-look 17-inch wheels with simulated dog dish polished hubcaps over black spokes. It also comes with a rear spoiler, and the automaker is offering the model in Pure White, Black Uni, and Reflex Silver.
The interior mixes in a few more classic touches but includes modern amenities like a standard navigation system, satellite radio and multifunction steering wheel. However, the seats are finished in a two-tone design combining light brown leatherette on the sides and checked cloth centers, plus lumbar support for the driver's side. The shift knob and handbrake also get wrapped in leather.

Porsche 911 with VW turbodiesel prepares for LeMons assault

LeMons racing is a wonderful example that setting limits can actually breed creativity. The series mandates that all entries must cost $500, not counting safety equipment, and that cap forces teams to be ingenious in how they build a racecar. Take for example this diesel-powered Porsche 911, which its creators have dubbed Ferkel the Nein-11, that will be racing in the Sears Pointless race this weekend in Sonoma, California.
This Frankenstein combines a 911 chassis that was originally bought just for its European powertrain and a Volkswagen TDI diesel engine mounted in the rear. After deciding the shell could still be of some use, the team decided to go racing. "We began brainstorming what replacement drivetrain to use for maximum offense and there was really only one answer: a diesel," said Philipp von Weitershausen, one of the team captains, to Jalopnik. They bought a 1998 Jetta TDI on the cheap and started figuring out a way to hack the engine into the bay. To pay respect to the donor, the VW's trunk was highly modified (and drilled) and grafted onto the back of Ferkel.
This team isn't a newcomer to LeMons. Its last car was a classic VW Beetle with a Subaru engine and dual controls, named Ferdinand the Bug, which could be driven from the left or right side. It's quite a sight.