2014 Se Used Certified 2l I4 16v Automatic Fwd Hatchback 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.

Submit your questions for Autoblog Podcast #321 LIVE!

We're set to record Autoblog Podcast #321 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #321
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This Or That: Fiat 500 Abarth vs. Ford Fiesta ST [w/poll]

They're pretty darn similar. And yet our views are oh so different.
If you guys could read the transcripts of our editors' chat room, you'd know that we're a pretty argumentative bunch. It's always good-spirited stuff (well, usually), but when we're not obsessively covering this or that, we're usually fighting about one car being better than another. We're all enthusiasts here, and our automotive tastes run the gamut from the weird and unusual to the decidedly mainstream - we all feel strongly about specific cars in a given segment. While it usually makes for good conversation, if we're passionate enough, it can turn into a tomato-throwing showdown.