1961 Vw Bus 23 Window Deluxe Original Black Plate Calif Car Walk Thru Samba on 2040-cars

Auto blog

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.

2015 Volkswagen Golf R [w/video]

Volkswagen hired a photographer to come shoot the handful of journalists that it brought to drive the 2015 Golf R at Buttonwillow Raceway north of Los Angeles. This fact, though unremarkable in and of itself, was something I hadn't noticed until I was well into my track time – probably ten laps deep on a day that would see me run twice that number. In any event, I noticed the intrepid shooter as he was sprinting from one side of the track to the other somewhere before Turn 2, while I was barreling down the main straightaway, still looking through Turn 1. In the roughly two-mile configuration of the track that I drove, Buttonwillow is a big, wide-open circuit, largely flat and with excellent overall visibility. On that layout, and just hours into my Golf R experience, I'd already become confident in endeavoring to push the limits of VW's latest blistering hatch. In fact, the easy nature of driving the thing quickly had me overestimating my pace. So when I saw the photog sprint across the tarmac I instinctively slowed way too much, way too early for Turn 1. Looking back at the incident after I'd pitted for the session, I laughed at myself, knowing I'd have had to be driving almost double my actual speed to put the camera guy in any real danger of being hit. But the experience crystallized what my full test of the R bore out: this is a car that makes you feel much faster than you otherwise would, at least in a competition setting. The 2015 Golf R is an uber hatch that will flatter those hyper-enthusiasts passionate enough to splash out on its steep price tag, but without threatening sales of core models like the GTI and its ilk. That's a good thing for the VW fanboys, to be sure, and, I'd argue, a great thing for the strength of the German brand overall. {C} The R felt both placid and comfortable while I clicked off highway miles in search of the racetrack. My test in California had at least two things in common with the First Drive feature that Steve Ewing brought us with the Golf R in Sweden. First, we both drove European specification cars (though mine didn't suffer from the same sticker abuse that Steve's did). Second, we were both somewhat limited in terms of driving the car in varied, real-world situations. My street route consisted almost entirely of tracking California's I-5 north out of Los Angeles; which any Angelino will tell you is a less-than-riveting mode of travel.

Winterkorn receives support of VW board, leadership battle continues

Strange things have been happening - in public, that is - at Volkswagen over the past few weeks, kicked off when VW Group chairman Ferdinand Piech reportedly said he didn't want Group CEO Martin Winterkorn to be the next company chairman, and that he was keeping Winterkorn "at a distance." Winterkorn's ascension was widely believed to be a fait accompli. We were really just waiting for office furniture and desk plaques to be moved around. That led to a meeting of the six-member supervisory board's leadership committee in Piech's office in Salzburg, Austria, not at Group HQ in Wolfsburg, Germany, where the five other members of the committee came out in support of Winterkorn. They also suggested they might extend his contract when it ends in 2016, and then gave Piech an ultimatum to agree to public support of the CEO or they would demand Piech's resignation. At the same time, the company's labor reps and the German state of Lower Saxony issued statements supporting Winterkorn. It's said that the chairman has a number of gripes with the CEO, prime among them being the state of the company's US business for the core Volkswagen brand. Market share has dropped to two percent in the United States and Winterkorn admitted that his team hasn't been properly engaged with our market. Years of effort put into a budget car haven't resulted in much except the company saying it finally knew how to do one, and that was a year ago. It's losing share in Brazil, overall profit margins are down, BMW is taking possession of the green-car credentials among German brands, and it's said that Piech doesn't believe Winterkorn has the vision to do what's necessary. Having agreed to play along and now in "diplomacy phase," some say a little light has gone out of Piech's star inside the company, while others wonder if this battle is truly over. Related Video: News Source: Automotove News - sub. req.Image Credit: JOHANNES EISELE/AFP/Getty Images Hirings/Firings/Layoffs Volkswagen martin winterkorn volkswagen group