VW drops 'Gamechanger' production at main plant, risking escalation with workers

BERLIN, Nov 11 (Reuters) - Volkswagen said on Wednesday it will no longer pursue a manufacturing concept designed to underpin future models at its main plant in Wolfsburg, in a move set to upset workers further in the German auto group's restructuring drama.

"The Volkswagen Group will not implement the "Gamechanger" manufacturing concept in the form originally planned," the company said in an emailed statement with Reuters.

The announcement comes less than two weeks after Volkswagen said it would suspend development work on the all-electric Golf in Wolfsburg, a sign of retrenchment reaching the group's headquarters.

Under CEO Oliver Blume, Europe's top automaker plans to cut 100,000 jobs and close up to four German plants as it battles stiff competition from China. Management faces strong opposition from Volkswagen's powerful labour forces, including the threat of strikes from January 1.

"The burial of the Gamechanger project marks a dramatic break from our agreement of December 2024," works council chief Daniela Cavallo said, referring to a landmark deal that ushered in the first wave of job cuts under Blume in return for investment and employment guarantees.

Labour representatives claim Volkswagen is now at risk of breaching those commitments.