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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.

1969 Ford GT40 Mk III found roaming the halls in Geneva

The halls of the 2015 Geneva Motor Show are filled with all manner of exotic racing machinery, from the likes Scuderia Cameron Glickenhaus to McLaren. But there's one peculiar bit of history tucked away that we thought you'd be equally interested to see: a 1969 Ford GT40 Mk III. One of only seven known to be built, this Mk III coupe was intended as a road-going alternative to earlier racing-bred GT40 models, like the original Mk I and 427-cubic-inch, Le Mans-dominating Mk II. Due to its street-legal intentions, the Ford GT40 Mk III boasted revised bodywork that allowed for some luggage and new headlights, along with a redesigned interior with left-hand-drive and a shifter in the normal, center position. The Mk III wasn't very popular when it was new in the 1960s, in part because it looked different from other GT40 models and because it was pretty expensive, but that just means it's an awfully rare gem today. Take a look at the piece of history in our high-res image gallery above. Related Video: Featured Gallery 1969 Ford GT40 Mk III: Geneva 2015 View 18 Photos Image Credit: Live photos copyright 2015 Drew Phillips / AOL Geneva Motor Show Ford Automotive History Coupe Racing Vehicles Special and Limited Editions Performance Classics 2015 Geneva Motor Show ford gt40 autoblog black

China takes lead as GM's No. 1 market

It's happened. General Motors' biggest vehicle market - at least in terms of new model sales - is China. According to TheDetroitBureau.com, GM and its various Chinese joint venture operations enjoyed a 10.6-percent sales increase in the first half of 2013, selling almost 1.6 million units in the market. That puts GM China about 200,000 units ahead of its US sales totals over the same period - this, despite indicators that the communist nation's economy is losing momentum.
TDB notes that like GM, rival Ford has also enjoyed a robust 2013 in China thus far, with its sales up a whopping 47 percent to 407,721 units sold - 75,254 of them in June alone. Between the two US automakers, passenger car sales for the first half of 2013 are up around 14 percent, well ahead of the rest of the industry's 10-percent growth estimates for the market. Some of the sales growth may come as a result of an overall anti-Japan sentiment in China, though the American brands have long outsold their Japanese counterparts in the country.
By The General's own predictions, China will only continue to grow in sales importance. The company has designs on selling over five million cars a year in the market before the end of the decade, a total that figures to dramatically widen the gap versus its US totals - even if America's auto market makes a full recovery to the the salad days of over 17-million units a year.