LVMH's Texas Factory Faces Production Crisis, Waste Rates Near 40%

The Louis Vuitton factory in Texas, inaugurated in 2019 by CEO Bernard Arnault and former President Donald Trump, is struggling significantly, ranking among the worst-performing sites globally for the brand. Chronic issues stem from a lack of skilled labor, leading to production errors and waste rates as high as 40%, double the industry average. Former employees describe a high-pressure environment where defects were often concealed to meet production targets. LVMH's Industrial Director, Ludovic Pauchard, acknowledged the challenges but claimed past issues, including management practices, have been resolved. These struggles highlight broader concerns about U.S. manufacturing and the effectiveness of protectionist policies aimed at boosting American production. Despite the setbacks, Louis Vuitton remains committed to improving quality standards at the Texas facility.