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FCA to pay buyers $1,700 to swap out of scandal-mired VWs

FCA is trying to gain some sales from arch-rival VW in the competitive European market by offering potential buyers in Italy up to $1,700 to swap into an FCA group car. While the promotion isn't specifically targeted at TDI owners affected by the emissions scandal, it is clearly intended to turn dissatisfaction with VW's defeat device cheat into additional sales, Bloomberg reports. The 500-1,500 euro incentive (roughly $560-1,700, depending on vehicle) stacks on top of any other rebates or deals applicable, and applies if a buyer brings in any of Volkswagen Group's cars – including Audi, Skoda, and SEAT, among (many) others. As Bloomberg notes, it's normal for automakers to offer "conquest" deals – giving a buyer cash for trading in a competitor's vehicle. Those deals aren't usually limited to one company's products, however; FCA's program looks specifically to take advantage of VW's legal and public relations nightmare. FCA isn't the only automaker trying this trick in Italy. Automotive News Europe also reported that Ford is offering approximately $840 in incentives across its entire range to owners of VW vehicles seeking to trade in for a Ford. No word of yet as to whether these incentives will spread beyond Italy or to other automakers.Related Video:

Tesla tires turning on Stretchla Vanagon EV conversion project

It is one thing to say you are going to Frankenstein a Tesla Model S with a pair of Siamese-twinned Volkswagen Vanagons and quite another to actually start taking your newly-acquired, smashed-up electric sedan apart in an effort to bring it back to life. Otmar Ebenhoech is doing just that, and having no small successes along the way. The Stretchla project, as it is being called, has officially started and our protagonist has put together another bit of video to document his progress and let us know about some of the different challenges he's encountered and conquered. While our original post about this endeavor featured video of the stretched Vanagon's drivetrain removal, this latest installment focuses on the Model S. Otmar received the Tesla in less-than-operable condition. Otmar received the Tesla in less-than-operable condition and has been tackling some of the basic problems one might expect to encounter: lots of error messages and an electrically disconnected battery pack. Without the aid of a manual or technical diagrams, he's removed the battery pack and discovered why it wasn't sending power to the car. Scroll below to watch the ten-minute presentation and celebrate some initial victories. You can also check out the official Stretchla blog for more photos and updates, including the most recent one that discusses how he talked himself into paying (*spoiler alert) $42,000 for a wrecked, non-functional electric car, along with more recent struggles with the steering rack. Hit us up in the comments to let us know what kind of trouble you would get into with a Model S drivetrain of your own. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

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.