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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.

Ken Block walks you through his new 'Hoonigan Racing' HQ

Ken Block seems like one hell of a nice guy. I ran into him at CES this past January, and he dropped the video games he was playing to chat with me for a while. His crew also recently gave our Steve Ewing a tour of the offices you're about to see on this video. Good guy to know.
As it turns out, they're some fairly cool new digs. Dubbed 'Hoonigan Racing Division HQ,' the office is open to Ford Focus ST and Fiesta ST owners who attend the driving program offered out at Miller Motorsports Park. The very same program that Ewing reported on just recently.
Or, if you've no plans to buy an ST or travel to Utah any time soon, you can let Block show you around himself in this MTV Cribs-style video. With interior decorating that relies heavily on shipping containers and luxurious amenities like a ping pong table, 10 refrigerators and a bear(?), there's no lack of eye-candy in the driverly HQ. (Judging by Block's outfit, you'll probably not go thirsty if you're a Monster drinker, either.) Take the tour along with the Gymkhana master, below.

Mysterious small Ford spied in Germany

Our spy photographers have just popped off a few shots of something curious. This little runabout was spotted in Germany out testing with a current-generation Ford Fiesta. We're fairly confident the machine is a Ford, but exactly which Ford model is up for debate. The hatchback could be the next-generation Ka, but we've also heard that the Blue Oval supermini might not get a replacement. Our shooter says the five-door is a bit smaller than the current Fiesta, though there is a chance that this rig is just an engineering mule for drivetrain development. Then again, it could be a model built specifically for the South African market or China, or not a Ford at all.
Whatever it is and wherever it's headed, you can check out in the gallery for a closer look before heading into Comments to weigh in with your best guess.