US President Donald Trump’s efforts to pressure Germany’s leading carmakers into building plants in America have hit resistance from Audi’s workforce. Labour leaders at the Volkswagen-owned brand insist that the company must protect jobs and production in Germany before committing to a US manufacturing facility.
Audi is considering options for its own US plant, while Volkswagen already operates a facility there and is building another for its Scout brand. However, works council chief and deputy board chairman Jörg Schlagbauer said expansion would only be acceptable if management guarantees long-term employment and output levels in Germany. Currently, he sees “no need” to add US capacity unless political circumstances make it unavoidable, and only if German operations remain secure.
The pushback comes as Audi manages a planned reduction of 7,500 German jobs by 2029 through voluntary buyouts and early retirements, alongside job security guarantees for remaining staff until 2033. So far, there have been no significant departures.
The tension stems from Trump’s tariff policies. In April 2025, the US imposed a 25% duty on European car imports, threatening €56 billion in annual EU exports. German automakers — Volkswagen, BMW, and Mercedes-Benz — account for nearly three-quarters of the 820,000 EU cars sold in the US. Porsche, which relies entirely on imports, could face €3.4 billion in lost earnings by 2026, while Stellantis reported a €2.3 billion loss in the first half of this year.
A later trade deal lowered the tariff to 15%, still far above the pre-2024 rate of 2.5%. With weaker demand in China and costly EV transitions, automakers may need to pass higher costs to US consumers or move production stateside — a step Audi’s workforce is not ready to support without firm guarantees.
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