1965 Ford Ranchero Base 4.7l 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.

How Ford switched gears for the all-new F-150

Editor's Note: This story is authored by Julia Halewicz, a senior editor with AOL's Custom Solutions Group. She holds a Masters in Journalism from NYU and has spent her career as an editor of various newspapers, magazines and digital outlets. Last year on the Friday before Labor Day, the 2014 Ford F-150 pickup truck came off the Dearborn assembly line for the last time. After the last seam was welded, the F-150 that had been so beloved by American consumers would begin the transition from traditional steel manufacturing to an aluminum body, and the second phase of Ford's 2007 blueprint for sustainability would begin. Jobs would be created, and Ford would deliver a stronger product to its consumers. It was a moment Ford would call the biggest in the company's 111-year history. Breaking The Mold For some, the change was almost unfathomable. How could a truck be made with aluminum, and why change what clearly was working very well for the company? "We have a saying at Ford that leaders lead," said Doug Scott, the company's truck group marketing manager. "This was an ideal product to make with aluminum-alloy, because lightweighting made so much sense for a truck, because the extent to which you could take weight out of a truck, you could add more value to the customer in terms of more towing, more payload, more durability, more efficiency – so again all this required us to be out in front further out in front that we normally would be to make sure that we would deliver on all those expectations." Ford began the planning process about five years before the first aluminum F-150 would come to market. The company had a lot of questions. What was customer acceptance of aluminum, could they build the truck, and could the truck be repaired out in the field? Finally, Ford needed to determine if there were enough materials available to support the demand for the F-Series. Aluminum vehicles aren't unusual, but had never been built on the scale of the F-150 – approximately one every minute. Ford created two prototypes to determine if the product would meet and exceed consumer expectations. Any change to the vehicle had to be justified in performance, safety and economy. An aluminum truck needed to be safer, lighter, have increased payload, haul more, and have improved fuel efficiency. After driving the prototypes, Ford knew it was ready to move forward. Once the aluminum truck was ready to build, the next challenge was quickly transforming the plant.

Ford to hack $4k off price of Focus EV amid slow sales

Between slow sales and a hefty price drop for its nearest rival, the Ford Focus Electric may be looking at a pretty substantial price cut. The Detroit News is reporting that Ford will drop the price of the all-electric by about $4,000 to $35,200 to be more competitive with the Nissan Leaf, which received a big price cut for 2013 down to $28,800.
Ford has already admitted to having low expectations for the car's sales and massive rebates were reported earlier in the year, but there is still no official word from Ford on this matter. The company's consumer site still lists the 2014 model's starting price as $39,200. In addition to the Leaf, the Focus Electric will also have to deal with the lower prices of smaller EVs including the Honda Fit EV, Fiat 500e and the Chevrolet Spark EV.