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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.

Experts wonder if aluminum F-150 gives Ford a real advantage

There's no doubt that Ford is taking a risk in producing the body of its upcoming new F-150 pickup truck in aluminum. What is up for debate, however, is whether aluminum was a wise risk to take in the first place. Wards Auto took the opportunity to poll some experts on the subject of aluminum versus steel in the automotive sector, with somewhat unsurprising results.
Richard Schultz, a project consultant at Ducker Worldwide, which bills itself as "a leading aluminum industry consultant (though they also deal in steels), suggests that the potential drawbacks to aluminum - higher costs, lower supply - aren't really impediments to the auto industry's increased acceptance of the lightweight metal.
Similarly, Randall Scheps, global automotive marketing director for Alcoa, a massive aluminum producer, counters claims that aluminum is less safe for vehicle occupants, suggesting that the use of aluminum can actually increase safety as it could potentially allow for larger vehicles with more crush space than steel.

Find out if the Ford Fiesta ST can match Europe's latest hot hatches

The V8 grunt of the Mustang has defined Ford performance cars in the US for the last 50 years, but in Europe, the Blue Oval has nearly as a long history of building some of the best hot hatches on the market with the Fiesta, Escort and later the Focus. The latest Fiesta ST has just hit the roads on both sides of the pond and has been enthusiastically received thanks to its combination of a peppy, turbocharged engine and hatchback utility.
However, Europe is getting a bumper crop of hot hatches at the moment, including the forthcoming, third-generation Mini Cooper S. Should Ford have waited to launch the ST until it knew how the competition performed? That's the answer that Xcar is after in its latest video, and it took the Fiesta to the track and some very misty, Welsh roads to find out. Scroll down to find out whether the ST stacks up.