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Volkswagen Golf Wagon caught completely uncovered

Without a lot of information to go with them, our camera-toting spies have captured some new images of a Volkswagen Golf wagon variant that is almost completely undisguised. In fact, the one piece of camouflage on the tidy wagon would probably have gone unnoticed to most casual viewers. Look closely at the rear three-quarter view of the car and you'll notice that the apparent taillight clusters are actually fakes - the outline of the real units is faintly visible behind the blue bodywork and the sticker-like fake taillights.
It's a good guess then, that this Golf wagon (called a Golf Kombi by our spy photographer) is a prototype that's pretty far along in the development cycle for Volkswagen. We can't be sure what impact this will have on the company's small wagon offering here in the US, but we'd be pretty surprised if something very like this didn't end up as the next Jetta SportWagen. We might well have more information on that front, after we visit Geneva next week.

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.

2014 Volkswagen GTI to start a new hot hatch era in Geneva

The upcoming Geneva Motor Show is going to be stocked with important new production models and sexy concept cars, but hot hatch enthusiasts will undoubtedly see it as the coming out party of the MkVII Volkswagen GTI. And while we've only got European specifications and pricing to go on for now, we can tell from the get-go that the new GTI will be a proper heir to VW's hot hatch legacy.
This seventh-generation GTI is powered by a turbocharged, direct-injection 2.0-liter four-cylinder engine, which makes 220 horsepower and 258 pound-feet of torque in base form. For the first time ever, Volkswagen is also offering a performance pack for the GTI as well, which ups the horsepower to 230 (torque remains unchanged). With a slightly lower curb weight to push around - the new base car weighs 2,978 pounds versus 3,034 for the current three-door GTI - 0-62 miles per hour is now achieved in 6.5 seconds, and top speed is 153 mph. (Cars with the performance pack offer 0-62 mph in 6.4 seconds, and a 155-mph top speed.) Buyers my choose between a six-speed manual transmission or an optional six-speed DSG unit.
Visually, the new GTI has obviously adopted the slant-nosed looks of the MkVII Golf, though with plenty of added drama. The exterior is dominated by the 17-inch "Brooklyn" wheels wearing 225-section rubber, and the aggressive front fascia gets black honeycombed inserts in the upper and lower grille sections. At launch, Volkswagen will offer the GTI in three colors: the Pure White seen here, Tornado Red and Black. Tartan patterned seats are of course still an option for the interior, while the GTI-specific steering wheel and shift knob are standard.