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Ford, Renault, VW shareholder oppose French aid for PSA/Peugeot-Citro"en

Pots and kettles, glass houses and stones - that's a little of what we appear to have going on in the European car market. New reports say that that three European automakers have registered their opposition to a loan deal that PSA/Peugeot-Citroën is working on with the French government. Peugeot's finance arm, Banque PSA Finance, is struggling with its debts and has been downgraded by Moody's to its lowest investment-grade classification, one step above junk. This makes it more expensive for a potential buyer to finance a car through Peugeot. The last thing Peugeot needs is more difficulty selling cars in the tough European market, and the situation will only worsen if the bank's credit worthiness takes another hit.
A deal being worked on would have the French government offer €7 billion ($9B U.S.) in bonds to guarantee the bank's loans, which would give the institution some breathing room to manage its debts and lower its interest rates. Outside of that, a group of banks would provide other, non-guaranteed loans to the bank to further help its position. In exchange for state help, though, the government wants seats on Peugeot's board for worker representatives and a government liaison, along with factory and worker guarantees. The Peugeot family would maintain control of the company.
So what we have is government assistance being provided to a car company's finance arm, akin to the way General Motors' GMAC (now Ally Financial) and Chrysler Financial got help in their time of need. What we also have is Ford and Renault, and Germany's State of Lower Saxony, the second-largest shareholder in Volkswagen, voicing their concern about the proposal, because they say it could create an unfair competitive advantage for Peugeot. Everyone in Europe's down market is fighting for every sale, and if Peugeot gets help to keep its auto loan costs down, it figures to help buyers choose Peugeot or Citroën.

Ford nets $5.7B in 2012, $1.6B in fourth quarter

Ford brought in $5.7 billion in net income during 2012, which is around $307 million less than one year prior. Even so, the automaker closed out 2012 with the highest pre-tax profit for a single quarter in nearly 10 years, earning $1.7 billion in the fourth quarter thanks largely to a higher-than-average truck mix in the US. That's a jump of $577 million over 2011. Likewise, that translated into fourth quarter income of $1.6 billion. All told, Ford set a full-year pre-tax profit record in 2012. But that doesn't necessarily mean everything is rosy in the land of the Blue Oval.
Like every other manufacturer, 2012 saw Ford get hammered in the European Union, where a deep economic recession continues to drive down consumer confidence. The automaker lost more than $700 million in Europe, and saw full revenue of $26.6 billion in 2012. That's a decline of $7.2 billion compared to last yea. Ford says the market for new vehicles in Europe has contracted to 13.5 million units, the lowest number in 17 years. You can read the full press release below for more information.

Lexus gets top brand marks from Consumer Reports; Ford, Jeep hit hard

Consumer Reports has released its 2014 Car Brand Report Cards, with Lexus again reigning at the top and doing so with the same industry-topping score of 79 that it registered in last year's Report Cards. This year, the institute credited its lineup for being "usually quiet, comfortable, and fuel-efficient," noting it's the only brand on the list "to achieve an excellent average overall reliability score." The Car Brand Report Cars list is meant to rank the best all-around vehicles based on CR testing and reliability results tallied by subscribers it surveyed. Each brand included must have sufficient test and reliability data for at least three models, a standard which left out 11 marques including Fiat, Jaguar, Land Rover and Porsche.
This 2014 Brand Report Cars edition is the first of a new format in which sub-brands have been broken out from their parent brands, with Acura using this year to move up the leaderboard into second place with a score of 75 for its "reliable, well-finished and somewhat sporty models." The top three was rounded out by Audi, climbing from eighth to third by scoring a 74 for "well-crafted interiors, nice handling and good gas mileage." Audi scored highest in the road-test portion, its improved reliability aiding its rise. The top nine was completed by Subaru, Toyota, Mazda, Honda, Infiniti and Mercedes-Benz.
Ford and Jeep weighed in at the other end of the rankings, Jeep taking the lowest overall score in the road tests and hampered by "a mix of spotty reliability." Ford was sunk by reliability issues with its MyFord Touch infotainment system which consumers found troublesome enough to negate its cars earning "solid test scores" for being "very nice to drive." Perhaps the rumored switch from Microsoft to Blackberry's QNX for the next generation SYNC will help them out. Cadillac's score also took a hit for infotainment reasons after it was the leading US brand last year, the CUE system in the XTS dragging Cadillac to the bottom of all General Motors brands.