Volkswagen's 5 billion euro ($6.
68 billion) cost-savings plan hit a major setback after labor leaders forced management to ax McKinsey, the consultants working out the cuts, three sources with knowledge of the matter said.
The move underlines how much relations between management and workers have soured at Europe's biggest carmaker, which is struggling to raise profits amid stagnating emerging markets and low growth at home.
The cost-cutting target itself still stands, however, the sources said. VW and McKinsey declined to comment.