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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.

BMW to follow Honda back into F1?

The economic downturn wrought devastating effects on motor racing. Formula One alone lost half its engine suppliers when Honda left at the end of the 2008 season, and both BMW and Toyota followed at the end of 2009. But things are looking up again. Cosworth may have dropped out this season, reducing the engine suppliers to three: Ferrari, Renault and Mercedes, the latter of which admits that it may have left had the engine formula not changed. But Mercedes has stayed and is dominating the championship. Honda is coming back next season. And word around the paddock is it may not be the only one.
According to Giancarlo Minardi - founder of the team now known as Scuderia Toro Rosso - BMW engineers have been conspicuously spotted lately at F1 test sessions and grands prix, lending to speculation that the new engine regulations may entice the Bavarian automaker back into the series. According to Minardi, BMW's marketing division is pushing for the automaker's return to F1, with the board slated to make a decision in May. BMW would be more likely to consider an engine-supply deal rather than taking a team over like it had with Sauber, but with which team or teams it might collaborate remains a big question mark at this point.
As if that's not enough, Ford is said to be considering taking over Cosworth's aborted V6 turbo engine program to take both outfits back into the sport as well. Cosworth supplied F1 engines under the Ford banner for years, but returned under its own name for four seasons from 2010 through 2013 before shuttering its program to develop an engine to meet the new regulations adopted this season.

Ford opens the doors on its Swedish rally skunkworks

It's always amazing to see how different kinds of racecars are made. Formula One racers are often constructed in modern architectural marvels that hint at some of the cutting-edge technology going into the racing. Conversely, rallying is all about sliding around on a varied course as fast as possible, but it often leaves a vehicle caked in mud. So it makes some sense Olsbergs MSE, or simply (OMSE) rally car shop in Nynashamn, Sweden, shows technological sophistication in a more down-to-earth setting. It builds Ford Fiesta ST racers for Global Rallycross there, and this new video gives viewers a tour through the work.
Former rally driver Andreas Eriksson runs OMSE. These days instead of racing, he and the company's 46 employees are building Ford racers from scratch. A ton of work goes into constructing each one, and according to Eriksson, it takes 400 hours to complete each body. At times, things are so busy that some of the technicians live in the shop in apartments that are on premises. There's even a restaurant to keep them fed. Sadly the dyno room is empty during this visit, though.
By the time OMSE is done, a rallycross car might resemble a Fiesta ST on the outside, but as you see in the video, it's a completely different beast underneath. Check out the work it takes to build one of them, and scroll down to read more about it in the official release.