Hard Shoulder

GERMANS SEEK FREEZE: There's some serious belt tightening underway in the German car industry.

GERMANS SEEK FREEZE: There's some serious belt tightening underway in the German car industry.

Taking its cue from DaimlerChrysler's battle with the unions earlier this year, Volkswagen management has offered to freeze its own pay for two years in a bid to gain workers' support for an austerity drive. The unions have dismissed the move as a "distraction tactic." VW is seeking a wage freeze for the 103,000 workers at its six western German VW plants.

Meanwhile Opel wants to freeze workers' pay through 2009 and extend the work week to 40 hours from 35 without raising wages.

NEW RENAULT STAR: The Renault Modus - which goes on sale here in the next fortnight - is the first supermini to secure the maximum 5-star rating in Euro NCAP crash tests. It's also the first in its class to achieve a 4-star rating for child protection.

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CZECH MOVES: The Waterford-based Sheridan Motor Group is expanding its leasing operations into the Czech Republic.

Its Archer Sheridan subsidiary will trade as Hertz Lease, based in Prague. It already holds the Hertz Lease franchise for the island of Ireland.

Short-term, the company expects to register 1,000 cars in the Czech Republic. The Group claims the move will be "a springboard from which we may expand into other new eastern European states in future years."

TRAINING DAYS: Ford Ireland has opened a dedicated training academy outside Naas in Co Kildare for workshop staff from its dealerships. Aimed at improving the level of know-how in the service and repair of vehicles, it will also be shared by Ford's sister brands in Ireland - Volvo, Land Rover and Jaguar.

MERC HYBRID: Mercedes denies claims that a hybrid version of the next S-Class is in the pipeline. However, it has been confirmed that the new crossover GST, due in 2006, will come with a hybrid engine. Currently Toyota has taken the lead with hybrid, first with its Prius and now with a petrol-electric version of the Lexus RX SUV model. The Lexus RX400h will not be here until next year, but is likely to be the first mainstream luxury hybrid on offer in Europe.

WRITE-UPS: Kia is on a high, with its new Picanto doing surprisingly well in group tests by several European car magazines. According to the firm, eight out of nine supermini group tests recommended the little Kia over competitors. Among the tests was British magazine Autocar which put the Picanto ahead of 10 other superminis.

NICE WORK: Once in the car business, you never really leave, even if you ruffle a few feathers along the way. Take David Thursfield. He lost his job at Ford's HQ in April after a reshuffle by boss Bill Ford aimed at ending infighting among his lieutenants.

Thursfield, one of the most aggressive cost-cutters in the industry, didn't have the cuddliest management style in Detroit. Now Ford has offered him a consulting contract until 2006, essentially returning to his old job. He will collect a cool €748,000 for his efforts, along with an office in the Ford HQ and a car and driver. Nice work if you can get it.