Audi must secure jobs and production in Germany before building a factory in the US over President Donald Trump’s tariffs, the carmaker’s top labor official said.
The Volkswagen AG-owned brand is reviewing several options for setting up its own manufacturing hub in the US, where VW already operates one plant and is building another for the Scout nameplate. Audi’s labor leaders are willing to back an expansion in the country only if management gives long-term guarantees for jobs and output at home, said Jörg Schlagbauer, the company’s works council chief.
“We are not refusing to discuss the matter, but for capacity reasons we do not see any need to build a plant in the US at present,” Schlagbauer, who also is Audi’s deputy board chairman, told Bloomberg in emailed comments. “If we need a plant in the US for political reasons, it cannot be at the expense of employees and capacity utilization in Germany.”
Trump’s trade moves and his push to curtail support for EVs are hitting Volkswagen’s premium brands at a difficult time. While Audi and Porsche AG are under pressure to move production to the US because they lack plants there, lower demand in China and muted sales in Europe mean their factories at home are running below capacity, and labor leaders are wary about giving up more output.
Audi reached an agreement with employee representatives in March to cut 7,500 German positions by 2029 via buyouts and early retirement — in exchange for extending job security guarantees for remaining workers until 2033. The company is in the process of informing employees about the offers, though so far “no significant staff reductions” have taken place, a labor spokesperson said.