Volkswagen announced Thursday it would deny the UAW’s request to be the sole representative of the automaker’s Chattanooga, Tenn. plant.

Now that the United Auto Workers have won full access to Volkswagen’s Chattanooga, Tenn. factory under VW’s community engagement policy, what will it do with its newfound power? Propose a works council, of course.

Though the United Auto Workers recently backed down from challenging the results of the February 2014 organization election held at Volkwagen’s Chattanooga, Tenn. plant before the National Labor Relations Board, Volkswagen has opted to leave the door open for representation via a variation of the works council model used elsewhere.

While Volkswagen works to find a way to establish a works council at their Chattanooga, Tenn. plant in the wake of the failed United Auto Workers election and subsequent appeal to the National Labor Relations Board, German union IG Metall is warning against the establishment of what it calls a “yellow” union at the plant, or one that has been established by Volkswagen.

Though United States Senator Bob Corker of Tennessee claimed Volkswagen would announce an expansion of the plant in his native Chattanooga — slated to build a midsize SUV based on the CrossBlue Concept from this year’s Detroit Auto Show — if the workers rejected the United Auto Workers in last month’s attempt to organise the plant, the German automaker has remained silent as of this weekend.

While the United Auto Workers take their battle to bring their brand of organization to Volkswagen’s plant in Chattanooga, Tenn. before the National Labor Relations Board, VW’s labor leaders are regrouping in their fight to establish a works council in the U.S. plant.

Should Volkswagen’s workers in Chattanooga, Tenn. not be allowed to unionize — with or without the United Auto Workers — the automaker’s works council may veto any plan to expand VW’s presence in the Southeastern United States.

Following the 712 – 629 decision against representation by the United Auto Workers at the Volkswagen plant in Chattanooga, Tenn., the union may be forced to throw in the towel on foreign-owned auto factories as the automaker’s works council vow to press forward with plans to establish their brand of representation in the plant.