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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.

Aurora's Chris Urmson on autonomy — that's one way to avoid speeding tickets

Although this year's CES was full of companies announcing and exhibiting their real and conceivable self-driving car technologies, while actual self-driving cars from Aptiv-Lyft were giving conventioneers 400 rides around town, the biggest news came when Volkswagen Group — and recognize this is the entire group, not just the brand — and Hyundai announced that they'd both partnered with Aurora Innovation. While the VW announcement was vague — "The collaboration brings the two companies together to realize self-driving electric vehicles in cities as Mobility-as-a-Service (MaaS) fleets" — Hyundai provided a concrete goal: "a strategic partnership to bring self-driving Hyundai vehicles to market by 2021." You may not have heard of Aurora, which has been described in some news accounts as "mysterious." But Aurora Innovation has been in business since December 2016, and it is to autonomous technology what the 1927 Yankees are to baseball. The three leaders of the company are Chris Urmson, co-founder and CEO, who had previously been chief technology officer for Alphabet Self-Driving Cars; Sterling Anderson, co-founder and chief product officer, who had directed the development of Tesla Autopilot; and Drew Bagnell, co-founder and chief technical officer, who had been autonomy architect and perception lead at the Uber Advanced Technology Center. We had the chance to sit down with Chris Urmson after he appeared onstage at a Hyundai press conference. He shared his insights on Aurora's approach to automated driving. Initial deployment of self-driving cars? "We think the first place this technology comes to market in in the transportation services or ride-hailing applications, but that's for our partners to decide." (Ride-sharing is a strategy a lot of players in the field are shooting for, as round-the-clock use is one way for paying for what will initially be a technology too costly for private ownership.) Transporting goods or people? "I personally — and as a company — am more excited initially about moving people around. Urban mobility. That's where you see the largest social impact. And it provides better access to mobility for people." Can you create a car that doesn't crash? "It is a fundamentally hard problem because other operators on the road can behave erratically at any moment. For example, if you are in a two-lane, opposing-traffic road, if you want to be safe, you don't drive there, ever.

VW could look outside its own ranks for next CEO

Companies have two options when coming up with succession plans – hire within, or go outside its ranks. Either choice comes with advantages and disadvantages, to be sure. Hiring within means generally getting someone familiar with the company and its culture and traditions, while going outside is ideal if you're looking to shake things up and bring in fresh ideas. It's unclear which avenue the Volkswagen Group will go down when it comes time to replace its head man, Herr Professor Doctor Doctor Herr Martin Winterkorn, but he isn't ruling out a trip outside of Wolfsburg. Winterkorn has already given the reins of the VW brand to former BMW board member Herbert Diess, while Andreas Renschler, a former Daimler board member, is heading up VW's truck group. Now, Winterkorn has made some statements to a German weekly that indicate the most important thing about his successor isn't necessarily his (or her, though no women appear to be on the short-list) previous employer, Motoring.com.au is reporting, so much as his qualities as a leader and an engineering background. "A Volkswagen boss has to have a big affinity to our products. He needs to be close to customers and he needs to have a relationship with dealers," Winterkorn told Stern. "Like always, it depends on the personality and it also helps if the candidate is an engineer." Motoring throws out a couple of potential candidates from within, including Porsche boss Mathias Muller, Audi Chairman Rupert Stadler and engineering guru Ulrich Hackenberg, in addition to both Diess and Renschler. And while each candidate has a lot of potential, the only thing that's guaranteed right now is what Winterkorn has already said: "The decision about who will succeed me is not an easy one for the supervisory board."