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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.

2015 Ford F-150 begins rolling off line at second factory

Ford needs more F-150s. Yeah, we just told you that a few days ago. The Blue Oval is reporting that its trucks are spending a mere 18 days on dealer lots, following a January that was the truck's best month in over a decade. Considering both of those facts, the timing is perfect for Ford to ramp up production of its all-aluminum truck by bringing its Kansas City, MO factory online. KC Assembly has been building F-150s for decades, and completed a $1.1-billion expansion to accommodate the all-aluminum 2015 truck (as well as for work on the Transit van). Similar to what was done at Ford's Dearborn, MI factory, the Blue Oval spent 13 weeks upgrading the plant's body shop, paint shop and a road-test course. Over 900 jobs were added as part of the update. Combined with the equally upgraded plant in metro Detroit, Ford can build 700,000 trucks per year. "The all-new F-150 has surpassed our expectations – setting new standards for fullsize truck capability, technology and efficiency," Joe Hinrichs, Ford's Americas president said in a statement. "With production starting at Kansas City Assembly, we are better poised to start meeting growing customer demand for our pickup." Scroll down for the official press blast from the Blue Oval. Related Video: KANSAS CITY ASSEMBLY PLANT COMES ON LINE AS SECOND U.S. FACTORY BUILDING ALL-NEW FORD F-150 2015 Ford F-150 starts production at Kansas City Assembly Plant; along with three shifts in operation at Dearborn Truck Plant, Ford is now producing even more units of the toughest, smartest, most capable F-150 ever All-new F-150 is turning more than four times faster than the overall full-size pickup truck segment; In addition to producing all F-150 models and cab configurations, Kansas City exclusively builds specialty F-150s with 8-foot cargo boxes and heavy payload packages to meet the needs of commercial fleet customers Kansas City Assembly Plant facilities transformed with the latest in manufacturing technology to build the first mass-produced truck in its class featuring a high-strength, military-grade, aluminum-alloy body and bed CLAYCOMO, Mo., March 13, 2015 – Ford today marks the official start of production of the all-new 2015 F-150 at Kansas City Assembly Plant, which joins Dearborn Truck Plant in building the toughest, smartest, most capable F-150 ever. This means Ford has expanded production of the first mass-produced light-duty pickup truck with a high-strength, military-grade, aluminum-alloy body.

Next Ford Mustang to drop 400 pounds

The Ford Mustang is already the lightest of the current crop of muscle cars, at around 3,600 pounds for a GT coupe with the six-speed manual transmission. That's almost 260 pounds less than a Chevrolet Camaro SS and about 450 pounds less than a Dodge Challenger R/T, which means the Mustang has a pretty big advantage when it comes to handling, braking, accelerating and economy. More good news: The next Mustang will be even lighter.
According to a report from Edmunds, the sixth-generation Mustang, which is set to debut at the 2014 North American International Auto Show, will shed an additional 400 pounds of body fat. That 11-percent weight reduction will be thanks to lightweight materials, with a particular focus on using stronger, but less material in construction. Aluminum will feature heavily, but Edmunds' inside source warns that there is "nothing terribly exotic" coming to the original pony car.
The other big news is that the new Mustang will be smaller overall. It's going to be 15-inches shorter than the 188.5-inch Mustang on sale today, while it'll also be 6.5 inches narrower. Shorter overhangs, both in the front and rear, are also good signs for those that want an agile Mustang.