1991 Volkswagen Jetta Gl Sedan 4-door 1.6l on 2040-cars

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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.

German prosecutors investigating Audi for emissions scandal

After weeks of investigation into Volkswagen by prosecutors in Braunschweig, Germany, attorneys in Ingolstadt will also begin an examination into Audi's potential role in the emissions scandal. They reportedly received multiple criminal complaints that requested an inquiry, including one from Audi, according to Bloomberg. The prosecutors in Ingolstadt want to focus on people within the automaker that are responsible for emissions. However, the investigation is still too early in the process to identify any specific suspects. The German lawyers might also eventually combine their cases, but they remain separate for now. "Braunschweig took those parts that are clearly located at Volkswagen and asked us to keep the elements limited to Audi," a spokesperson for the Ingolstadt attorneys told Bloomberg. Audi has 2.1 million vehicles worldwide with Volkswagen Group's emissions-cheating four-cylinder diesel, including an estimated 13,000-14,000 of them in the US. The Environmental Protection Agency also recently filed a second violation notice against the 3.0-liter TDI V6 that was used in several of the company's models here, and the automaker responded with a stop sale for them. VW Group's carbon-dioxide emissions cheating in Europe also reportedly involves some Audi models. In that case, engineers admitted to artificially improving test results to achieve the cuts that the automaker requested.

CEO says Volkswagen's buying spree is over

After adding Italian motorcycle icon Ducati to its stable and spending $5.6 billion on the rest of Porsche, Volkswagen CEO Martin Winterkorn says he's done shopping for a while.
"We have enough to do at the moment in taking our twelve brands to where we want to be," Winterkorn tells German newspaper Handelsblatt.