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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.

Former Audi chief designer Wolfgang Egger leaves Italdesign

The latest word from the international community of automotive designers has it that Wolfgang Egger is leaving Italdesign, but just where the accomplished designer will land next and who will take his place remain big question marks. Egger is a designer who has bounced back and forth between Italy and Germany over the course of his career. He was born in Germany but studied in Milan. He began his career at Alfa Romeo in 1989 and was named its chief designer by 1993 before being head-hunted by the Volkswagen Group in 1998 to head up the design department at Seat. A few years later he went returned to Italy to run the Lancia design department, and was subsequently renamed to the same post at Alfa Romeo. In 2007 he went back to his native Germany to head up the Audi design office, over which he assumed complete responsibility by 2012, but left Audi in 2013 to run Italdesign. For those unfamiliar, Italdesign is the studio founded by Giorgetto Giugiaro (pictured at left next to Egger) back in 1968 but which, along with many other Italian design houses, fell on hard times in recent years. The Volkswagen Group swooped in to rescue the troubled studio in 2010, turning it into something of an in-house advanced design department to provide an alternative perspective on the direction in which the group and its various brands could take their respective designs moving forward. With Egger now leaving its helm, Italdesign and its German parent company will need to find his replacement, and we're sure they'll announce one in due course. The bigger question on our minds, however, is where Egger himself will head next. Given the path his career has taken to date, we wouldn't be surprised to see him land elsewhere in the Volkswagen Group or find a new role in the expanding Fiat Chrysler Automobiles empire. Then again, Egger could find it time to open an entirely new chapter. Watch this space. News Source: Car Design NewsImage Credit: Newspress Design/Style Hirings/Firings/Layoffs Audi Volkswagen designer italdesign giugiaro wolfgang egger

VW chair says component cost decrease keeps him confident of EV success

Volkswagen AG is in the middle of implementing a comprehensive electric vehicle strategy, one that we've been documenting for a long time. The Group stands ready to offer dozens of plug-in vehicles in the coming years if it feels there is sufficient demand and believes that selling a million EVs in Germany by 2020 is reasonable. That would be a solid number, but remember that VW sold over 5,923,000 passenger cars around the world last year, and the group as a whole sold over 9.7 million. At the company's annual Media Conference and Investor Conference in Berlin recently, the chairman of the board of VW AG - surrounded by some decidedly non-green examples of the VW Group's vehicles (some absurd new Bugatti, for example) - took some time to put the company's EV plans into focus. The upshot is that Dr. Martin Winterkorn is still guiding his electromobility ship into new waters, saying that "many more [plug-in] models will follow." Winterkorn said there are three main reasons he is confident in the ability of VW (and Audi and Porsche, at the very least) to push EV sales upward. Batteries are getting better, he said, and if the ranges can be extended, then customers are happy. But the real secret lies in reducing component costs. He said (as translated): It is important to look at the cost of the components: the battery technology, the electric motor and the electric components. Whenever you go into volume production, you of course have economies of scale. In two to three years' time, if we are able to achieve the goals we are setting for ourselves with cost and reach sufficient volume, I do believe that we can achieve two to three percent [market share] within VW Group. So, hitting a million EVs by 2020 is reachable. With the e-Golf and the e-Up off to excellent sales starts, we're willing to be confident as well.