Volkswagen will no longer pursue the “Gamechanger” manufacturing concept, which was intended to underpin future vehicle models at its main plant in Wolfsburg, Reuters reported.
The decision comes less than two weeks after reports that the carmaker would suspend development of the all-electric Golf (ID. Golf) at its Wolfsburg site.
Reports also said that a planned large-scale casting facility at the Wolfsburg plant has been axed under the latest changes.
Under 'Gamechanger' VW Group would effectively be investing at some scale to future-proof the company and underpin manufacturing at Wolfsburg. However, the latest developments appear to suggest that cost-savings for the shorter-term are now taking more precedence.
Other media reports suggest that VW will not scrap its Scalable Systems Platform (SSP) program, which aims to create a shared electric platform for future high volume models. The company will also reportedly continue to streamline production by simplifying its next generation of vehicles at all of its production facilities.
Under CEO Oliver Blume, the company plans to eliminate 100,000 jobs and close up to four plants in Germany as it contends with intense competition from Chinese manufacturers.
“The Volkswagen Group will not implement the ‘Gamechanger’ manufacturing concept in the form originally planned,” the company said in an emailed statement to the news agency.
Labour representatives have warned that the move risks escalating the dispute with the workforce, with management already facing the threat of strikes from 1 January.
“The burial of the Gamechanger project marks a dramatic break from our agreement of December 2024,” Works Council chief Daniela Cavallo was quoted as saying.
Cavallo was referring to a landmark agreement that paved the way for an initial wave of job cuts under Blume, made in exchange for investment and employment guarantees.
Labour representatives maintain that Volkswagen is now in danger of breaching those commitments.
Earlier this week, Hans Dieter Pötsch, chairman of Volkswagen's major shareholder Porsche SE, called on Volkswagen managers to speed up the group's overhaul after weaker earnings reduced the investment company's profit.
Porsche SE said lower earnings at Volkswagen and luxury carmaker Porsche AG weighed on its performance.
Last month, Volkswagen warned of an urgent need for action after disappointing results.
The company posted a widening operating loss of €5.8bn ($6.42bn) in the third quarter, adding to pressure on it to reduce its cost base.
Over the nine months to the end of September, Volkswagen posted an operating profit of €0.1bn, compared with €5.4bn in the same period of 2025.
