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Ford partnering with MIT, Stanford on autonomous vehicle research

Ask any car engineer what's the biggest variable in achieving fuel economy targets, and he'll tell you "the driver." If one human can't understand human driving behavior enough to be certain about an innocuous number like miles per gallon, how is an autonomous car supposed to figure out what hundreds of other drivers are going to do in the course of a day? Ford has enlisted the help of Stanford and the Massachusetts Institute of Technology to find out.
Starting with the automated Fusion Hybrid introduced in December, MIT will be developing algorithms that driverless cars can use to "predict actions of other vehicles and pedestrians" and objects within the three-dimensional map provided by its four LIDAR sensors.
The Stanford team will research how to extend the 'vision' of that LIDAR array beyond obstructions while driving, analogous to the way a driver uses the entire width of a lane to see what's ahead of a larger vehicle in front. Ford says it wants to "provide the vehicle with common sense" as part of its Blueprint for Mobility, preparing for an autonomous world from 2025 and beyond.

Ford Ka Concept shown in Brazil, could enter production by 2014

The Ford Ka (pronounce it like a Bostonian saying "car") is the Blue Oval's sub-Fiesta offering in a number of markets that aren't North America. It's been a staple in Europe since it launched in 1996 and in South America since 1997, where it's enjoyed quite a bit of popularity as an affordable, efficient city car.
The European and South American models grew apart over the years, until Europe ended up with a Fiesta-inspired car and Brazil retained a more evolved version of the original Ka's styling. With this Ka Concept, which is really a concept in name only, Ford is previewing a Ka not just for the European market, but as the brand's new, global small car. With city car sales expected to grow dramatically in coming years and the ever increasing price of fuel, Ford's move to get a new, competitive car into the market on a global level isn't surprising.
Wearing Ford's new, familial grille, the Ka Concept features the same crisp, sculpted sheetmetal that's adorned the Fusion and Fiesta. Developed in-house by Ford Brazil, a production version could launch by 2014, according to Ford's press release. It's unclear what engines will sit under this car's hood, although we'd bet the 1.0-liter, EcoBoost three-cylinder from the Fiesta will be available at some point.

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.