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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 iBeetle gets integrated iPhone dock, little else

Apple fans have been itching to see the tech giant flex the full muscle of its iOS operating system in an automotive infotainment system for years, which is why we turned all sorts of excited when we caught wind of the Volkswagen iBeetle. The machine is headed to the Shanghai Motor Show for a debut, and VW promised it would be one of the "first cars in the world to have a genuine integrative interface for the iPhone that was coordinated with Apple." Listen closely, and you can hear the contented sigh of a million wallets opening.
Go ahead and close those up, kids.
In reality, the iBeetle offers little more than a dash-mounted dock and a special app that shows a few vehicle functions, which is about as far from an infotainment revolution as you're likely to find. In fact, the setup is little more than a factory rehash of aftermarket items, and hardly worth a whole model debut at an international motor show. And that's to say nothing of the fact that Apple relishes in changing the shape and form of its darling handheld at every generation. Volkswagen better be prepared to keep pace with appropriate docking mechanisms for the upcoming iPhone 5S, 6, 6S, et al.

VW, Suzuki mulling rekindling relationship in face of legal battle

Volkswagen and Suzuki have been undergoing marriage counseling in a bid to avoid finalizing their nasty divorce. The blissful union has been troubled for some time, with Volkswagen claiming that it could affect operational decisions at Suzuki, and the Japanese brand's sniping and constant flirting with a certain Italian temptress causing rifts.
The matter first went to court in 2012, when Suzuki demanded VW get out, and leave its 19.9-percent stake in the Japanese brand in a box to the left. Now, Automotive News is reporting that the company will give the relationship one last shot, according to closed-door dealings between the two in London.
Still, it's understood that VW and Suzuki recognize the benefit of their alliance, and that it'd be in the best interests of the kids both parties to make things work. Spokespeople declined to comment to AN, but the newsmagazine spoke with Frank Biller, an analyst for LBBW in Stuttgart, who said, "Both companies stand to benefit if they can overcome the disagreements over leadership claims."