Germany news: Carmakers paint bleak picture on jobs

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AdvertisementSkip next section What you need to know

What you need to know

• Germany's auto industry is facing deeper job cuts than previously expected, according to the German Association of the Automotive Industry
• VDA President Hildegard Müller said up to 225,000 jobs could be lost by 2035 — around 35,000 more than earlier forecast
• Internal discussions over a possible return of Manuel Neuer to Germany's national team are reported to have intensified despite public denials

Here are the latest developments from and about Germany on Wednesday, May 13, 2026.  

Skip next section Coalition makes U-turn on €1,000 worker bonus plan05/13/2026May 13, 2026

Coalition makes U-turn on €1,000 worker bonus plan

Germany’s coalition has scrapped plans for a €1,000 ($1,170) tax-free bonus for workers after it failed in the upper house of parliament, the Bundesrat.

The plan had been put forward in response to soaring prices due to the war in Iran. It was faced with heavy opposition from employers and Germany’s states, which are represented in the Bundesrat.

The proposal will no longer be pursued further after a Tuesday coalition committee meeting.

The government now plans to shift focus to broader reforms, with Chancellor Friedrich Merz set to invite labor and business representatives for talks at the Chancellery in early June.

Coalition leaders aim to reach joint decisions on key reforms covering taxes, the labor market, pensions, and cutting bureaucracy before the summer break.

Separately, the coalition agreed to keep carbon pricing stable next year, maintaining a corridor of €55 to €65 per ton of CO2. Leaders also plan to finalize the 2027 budget without drawing on reserves.

https://p.dw.com/p/5DhPDSkip next section AfD leads poll ahead of September state vote05/13/2026May 13, 2026

AfD leads poll ahead of September state vote

The far-right Alternative for Germany (AfD) remains the strongest force in the northeastern state of Mecklenburg-Western Pomerania about four months before an election there.

A survey by Infratest dimap for the broadcaster NDR put the AfD at 36%, up one point since January, while the center-left Social Democrats (SPD) rose two points to 27%.

The socialist Left Party reached 13%, moving into third place ahead of the Christian Democrats, who dropped to 10%.

The populist-left Sahra Wagenknecht Alliance stood at 5%, hovering around the threshold for entering parliament. The Greens polled 4% and would miss out, along with the business-focused Free Democratic Party.

Satisfaction with the state government has fallen, with 38% saying they are satisfied and 58% dissatisfied.

The state election is scheduled for September 20. Since 2021. State premier Manuela Schwesig has led a coalition between the SPD and The Left and is seeking to remain in office.

Merz's first year marked by coalition tensions, AfD gains

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https://p.dw.com/p/5Dh5tSkip next section Court rules Milka shrinkflation unlawful05/13/2026May 13, 2026

Court rules Milka shrinkflation unlawful

A German court has ruled that smaller Milka chocolate bars violate competition law.

The Regional Court of Bremen sided with a lawsuit brought by the Consumer Advice Center Hamburg against manufacturer Mondelez International.

Judges found the company could not sell 90-gram (3.17-ounce) bars in unchanged packaging if 100-gram versions had been offered in the previous four months. Mondelez had reduced the weight of several Milka products from 100 to 90 grams while keeping packaging largely the same.

The ruling is not yet final and can still be appealed.

A court spokesperson said "that has no direct consequences" for products already on sale but added the decision is relevant for future cases due to the risk of repeat violations.

Mondelez said it takes the ruling seriously and is reviewing the court's reasoning.

Judges had earlier indicated consumers could be misled, with the presiding judge describing the product as a "relatively deceptive package" where "the consumer sees no difference."

Easter chocolate prices surge amid cocoa supply crunch

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https://p.dw.com/p/5DgeDSkip next section Debate grows over Neuer return for World Cup05/13/2026May 13, 2026

Debate grows over Neuer return for World Cup

Internal discussions over a possible return of Manuel Neuer to Germany’s national team are reported to have intensified despite public denials.

The Kicker football magazine reported that the issue is being debated more deeply and controversially than coach Julian Nagelsmann has indicated, with Bayern Munich also aware of the talks.

Neuer and Nagelsmann have both recently ruled out a comeback for the World Cup in the United States, Canada and Mexico.

"The World Cup will take place, but I'm not involved in it at all right now, and I'm not part of the whole thing, so I'm watching it calmly from the outside," Neuer recently said during the Sportstudio TV show.

Neuer retired from international football after Euro 2024 but has impressed for Bayern Munich this season, fueling speculation over a return for one final tournament.

A comeback would likely come at the expense of keeper Oliver Baumann, who had been in line to start, while Marc-Andre ter Stegen has struggled with long-term injuries.

Germany have been drawn in Group E alongside Curacao, Ivory Coast and Ecuador.

The irreplaceable Manuel Neuer?

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https://p.dw.com/p/5DgI4Skip next section Auto industry warns of 225,000 job losses05/13/2026May 13, 2026

Auto industry warns of 225,000 job losses

Germany's auto industry is facing deeper job cuts than previously expected, the German Association of the Automotive Industry (VDA) has warned.

VDA President Hildegard Müller told RND that up to 225,000 jobs could be lost by 2035, around 35,000 more than earlier forecasts.

The outlook depends heavily on future drivetrain policies, with the VDA saying greater technology openness could preserve up to 50,000 jobs in Germany.

Müller said the shift from combustion engines to electric vehicles is already hitting suppliers hardest.

The VDA warned that without changes to EU rules, a further 50,000 jobs could be at risk due to planned limits on combustion engine vehicles.

Müller also pointed to broader economic pressures and a "serious and persistent location crisis" in Germany and Europe as contributing to the negative trend.

Conditions are continuing to deteriorate, she said, pointing to high taxes and levies, expensive energy, high labor costs, and excessive bureaucracy.

Mercedes: Iconic german brand or fallen star?

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https://p.dw.com/p/5DgGbSkip next section Welcome to our coverage05/13/2026May 13, 2026

Welcome to our coverage

Richard Connor | Rana Taha Editor

Guten Tag from the DW newsroom in Bonn.

You join us as Germany’s powerful auto industry lobby says the sector's future doesn't look great in terms of jobs.

It warns that another 125,000 jobs could disappear by 2035 unless Europe changes course.

Stick with us for these and other stories that Germany is talking about.

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