Key Points Summary: Louis Vuitton US Factory
- Factory Opened by Trump and Arnault: The Texas facility launched in 2019 with high hopes to avoid tariffs and boost local production.
- Underperformance: The site has ranked among the worst-performing Louis Vuitton factories globally.
- Quality Issues: A shortage of skilled leatherworkers led to high defect rates and up to 40% material waste.
- High Pressure Culture: Former workers reported supervisors encouraged covering up mistakes to meet quotas.
- Limited Production Scope: Texas site mostly handles simpler bags, not the high-end models made in Europe.
- Shredded Products: Defective bags are destroyed on-site and removed for incineration.
Six years ago, luxury giant LVMH and then-President Donald Trump cut the ribbon on a new Louis Vuitton US factory in Texas. The goal was to produce world-class handbags while dodging tariffs on European-made goods. But things haven’t gone as planned.
Texas Factory Ranked Among the Worst
The site in Alvarado, Texas, sits on a 250-acre ranch and was supposed to be a cornerstone of Louis Vuitton’s American ambitions. However, it has underperformed badly.
According to former employees and insiders, it ranked among the worst-performing factories worldwide. Internal reports reportedly showed it lagged behind others in both output and quality.
Lack of Skilled Workers Cripples Production
One key issue? A shortage of skilled leatherworkers. Several former employees said it took years to produce even the most basic parts of the popular Neverfull bag. The factory also wasted nearly 40% of leather hides due to production errors—double the industry standard.
One former worker told Reuters, “It was high pressure every day. Managers cared more about numbers than quality.”
Defects Hidden to Meet Quotas
To keep up with targets, supervisors allegedly turned a blind eye to flaws—or encouraged workers to hide them. Four employees claimed methods like melting leather to conceal defects were common practice.
Louis Vuitton’s industrial director Ludovic Pauchard admitted one manager promoted those tactics in 2018 but was later let go. “That issue has been addressed,” he said.
Poor-Quality Bags Destroyed on Site
Bags deemed unfit for sale were shredded and taken away for incineration. A production supervisor confirmed that only basic bag models were made in Texas. The high-end pieces? Still made in Europe.
Even so, Pauchard defended the Texas plant. “We are patient with this young factory. Every bag must meet our standards,” he said.
‘Made in USA’ With Caveats
Despite the struggles, the Louis Vuitton US factory stamps its bags with “Made in USA” tags. Items like the Carryall, Keepall, and Metis are reportedly among those produced in Texas.
The factory includes separate floors for cutting, assembly, and storage. Workers were originally paid $13 per hour. That has now increased to $17—still a far cry from wages in European ateliers.
Training Often Inadequate, Say Former Staff
Several ex-employees said they only received two to five weeks of training. But in France, workers are trained by experienced artisans on the floor. Louis Vuitton insists its Texas training mirrors global standards.
“Our new hires spend six weeks learning operations before joining the main line,” said Damien Verbrigghe, the brand’s international manufacturing director.
Still, many workers left. Some realized the attention to detail required wasn’t for them. “They preferred jobs in logistics,” Verbrigghe noted.
Big Promises, Small Results
In 2017, LVMH promised to hire 500 people in five years. At the 2019 launch, CEO Bernard Arnault upped that to 1,000 jobs. But by early 2025, only around 300 staff worked at the site.
That gap raises questions about the effectiveness of the project. Especially since Johnson County gave the factory major tax breaks—including a 10-year, 75% property tax cut worth $29 million.
More Jobs Shifting to Texas
Despite the setbacks, LVMH is expanding in Texas. It built a second facility for $23.5 million and has plans to consolidate operations from California.
At a recent town hall, workers from a California plant were told their site would close in 2028. They could either relocate to Texas or leave the company.
Pauchard admitted moving skilled workers from California hasn’t been easy. “We underestimated the distance and logistics,” he said.
Factory Still Has a Long Road Ahead
Although LVMH has defended the quality of its U.S.-made bags, the challenges are hard to ignore. The Louis Vuitton US factory hasn’t lived up to expectations. Quality issues, training gaps, and missed hiring targets all point to a rough start.
Still, executives remain hopeful. They insist that with more time, the Texas plant can deliver the excellence Louis Vuitton is known for worldwide.
