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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.

Former Porsche CEO Wiedeking indicted over VW takeover bid

Do you recall the failed efforts by Porsche to take over Volkswagen? According to a Bloomberg report, former Porsche CEO Wendelin Wiedeking (above) and ex-CFO Holger Haerter have finally been charged with market manipulation over the exercising of options as part of the German sportscar manufacturer's ill-fated attempt to take over the much larger VW. That failed bid eventually resulted in the reverse coming true - VW swallowing Porsche.
The charges leveled by Stuttgart prosecutors come after a three-year investigation centered around allegations that Porsche execs made a concerted effort to increase the company's share in VW to 75 percent in preparation for a hostile takeover. Porsche had previously told its investors on at least five occasions that it had no intention to buy VW.
Portions of the investigation have subsided, according to prosecutors, citing an inability to prove certain improprieties with a "necessary degree of certainty." The number of charges is down to 5 from a previous 14 counts regarding "information-based market manipulation."

Next Volkswagen Golf R to get 286 horsepower?

The seventh-generation Volkswagen Golf hasn't launched in the United States just yet, but we're already setting our sights on the range-topping R model. According to Autocar, the next Golf R will be more powerful than the current version, producing 268 horsepower and 280 pound-feet of torque, making it the most powerful production Golf ever.
Powering the new Golf R will be a further evolution of Volkswagen's well-liked 2.0-liter turbocharged inline-four, and when mated to a six-speed dual-clutch transmission, the hotter hatch will reportedly be able to sprint to 62 miles per hour in five seconds flat. That's over half a second quicker than the current US-spec model.
Other updates for the new Golf R include the addition of VW's Haldex 5 all-wheel-drive system found in the latest iteration of 4Motion. Furthermore, thanks to the use of lightweight materials, the new R is expected to weigh in around 2,650 pounds - that's a massive 675 pounds less than the current US-spec car. The exhaust has reportedly been reworked to provide more aural delight, as well.