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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.

Volkswagen Golf Wagon leaked ahead of official unveiling

Wagons ho! These three images of the upcoming Volkswagen Golf Wagon have leaked online ahead of the car's official debut, which may very well be at the Geneva Motor Show. Looking over the photos doesn't really bring any surprises - after all, this is a VW Golf with a wagon rear end grafted on, or basically what we expect next Jetta SportWagen will be.
We can only share these three images at this time, but fret not, folks. There's little doubt that all the details and images will be flowing from Volkswagen in short order. In the meantime, click on the images above to view them in high resolution.

VW will reportedly offer cash to cheated diesel car drivers

If you're feeling burned by Volkswagen's decision to cheat on diesel emissions tests, you might get some compensation for your troubles. Sources for The Truth About Cars understand that VW will launch a "TDI Goodwill Program" that compensates diesel car drivers with cash in the form of prepaid cards. In the US, you'd get both a $500 universal card as well as a VW-only card worth $500 to $750. The automaker isn't confirming details just yet, but it tells the New York Times that it's planning an announcement on Monday. Dealers also tell the newspaper that they're aware of a program in the works, although they don't know the specifics. It may not include the expanded range of cars reportedly tainted by the scandal, though, since VW is denying claims that it cheated with some models. This isn't the only olive branch VW has been offering: it's been handing out deals to existing owners willing to hop into new vehicles, and there are more discounts than usual across the board. However, the goodwill effort would represent the first instance of VW directly compensating drivers who'd previously thought they were getting an eco-friendly machine. This isn't going to make up for years of unnecessary pollution, but it may represent the company's best hope of holding on to customers. This article by Jon Fingas originally ran on Engadget, the definitive guide to this connected life. ?> News Source: The Truth About Cars via The New York TimesImage Credit: Ralf Hirschberger/dpa via AP Earnings/Financials Green Audi Porsche Volkswagen Hatchback Wagon Diesel Vehicles Sedan vw diesel scandal compensation