AGP Executive Report

India Investment: German companies expect to double or triple their growth in India over the next three to five years, India’s commerce minister said after meetings with German business leaders. The discussions focused on manufacturing, research and development, technology and trade. Industrial Energy: Everllence will supply a 13.5-megawatt turbine-generator to Yara’s fertilizer plant near Rostock, allowing it to turn process steam into electricity and improve efficiency. Auto Industry: Germany and France are seeking to soften the EU’s planned 2035 combustion-car phaseout, proposing a 90% emissions cut instead of 100%; the change still needs EU approval. Investment and Jobs: Amazon plans to invest €16 billion in Germany in 2027, while insurer Generali plans to cut about 800 German jobs by 2030 as it restructures. Economic Outlook: German private-sector growth slowed in October, adding to concerns about the country’s industrial momentum.

Economic Outlook: German private-sector growth eased in October, while more than half of manufacturers have no plans to build new production facilities in the country for now. SMEs, however, reported higher profitability despite ongoing challenges. Business Restructuring: Bosch will separate its mobility operations into a subsidiary, Generali plans to cut 800 jobs and close three German offices, and solar-storage company Sonnen has filed for insolvency. Corporate Results: Adidas raised its full-year profit outlook after a record quarter, offering a brighter note amid broader pressures on industry. Trade and Investment: India’s commerce minister used talks in Berlin to promote closer German-Indian cooperation in research, technology and manufacturing, with the India-EU trade deal expected to widen market access and supply-chain links. Industry Risks: Germany’s pharmaceutical sector expects sales to fall amid US trade tensions, while Roche warned the country faces a “final opportunity” to restore its appeal as an investment location.

Markets and Outlook: Germany’s DAX fell 0.8% as oil surged to a four-year high and eurozone growth eased. Germany’s private-sector expansion also slowed in October, while manufacturers remain wary of new investment amid high costs. Chemicals: BASF has raised its offer for Evonik to about €24 a share, valuing the group at more than €11 billion. Industry and Jobs: Energy costs are pushing manufacturers to consider moving production abroad. Volkswagen workers are threatening strikes after the carmaker scrapped labour agreements, while Generali plans to cut 800 jobs in Germany. Technology: Siemens and Nvidia are deploying industrial AI at a German factory, targeting faster engineering and production. Business Conditions: German SMEs reported higher profitability in 2025 despite cost pressures, but the pharmaceutical industry expects output and sales to fall this year amid US trade uncertainty.

Automation: German distributor KOMSA and robotics maker KUKA are teaming up to bring autonomous mobile robots to more businesses, with a focus on making adoption easier for small and midsize firms. Industry: KBR will modernise AGF Nitrogen’s ammonia plant in Lutherstadt Wittenberg, aiming to cut gas use and emissions while improving efficiency. Property: German home prices barely rose in the third quarter as higher interest rates weighed on buyers, according to IW data. Corporate Restructuring: Bosch plans to place its German Mobility business and three service units in separate subsidiaries from 2027, transferring about 62,500 employees. Investment: Claas is investing €60.7 million at its Paderborn site, with more than 100 jobs expected; Amazon plans €16 billion of German investment in 2027. Trade: India’s commerce minister said India-Germany trade could reach €310 billion, while warning that the EU’s steel duties and carbon border tax risk raising costs for industry and consumers.

Economic Outlook: Germany’s economy likely stagnated in the third quarter as energy costs and inflation rose. Low water on the Rhine is also weighing on growth, while higher tax-revenue forecasts offer the government little extra fiscal room. Corporate Investment: Amazon plans to invest €16 billion in Germany in 2027. MTU is putting more than €100 million into its Hannover maintenance site, adding capacity and about 200 jobs. Technology: SAP reported quarterly revenue above €10 billion, driven by cloud growth, and raised its 2026 outlook. Infineon and Nvidia will develop power-conversion technology for high-voltage AI data centres. Industry: BASF confirmed interest in talks with Evonik, while BMW’s reported six-figure severance offers point to continued pressure to cut costs. Trade: India’s commerce minister urged German and Indian firms to prepare for an EU-India trade deal that could take effect within four to five months, and proposed lifting bilateral trade to €310 billion.

Investment: Amazon plans to invest €16 billion in Germany in 2027, including in data centres and AI. The commitment comes as Chancellor Friedrich Merz pitches Germany as a hub for technology, chips and defence. Business Results: SAP reported record quarterly revenue above €10 billion, with cloud growth of 26%, and maintained its annual operating-profit outlook. Economic Outlook: The Bundesbank expects Germany’s economy to have stagnated in the third quarter. Investor sentiment also weakened in October, while German industry has shed nearly half a million jobs since 2019, according to the Ifo Institute. Trade and Industry: Merz says the EU should protect its industries from unfair Chinese competition but avoid a trade war. India’s commerce minister is visiting Germany with more than 100 businesses to discuss investment and cooperation. Automotive: Audi named new China leaders as sales fall and German carmakers struggle to keep pace with local EV rivals.

Investment Drive: Amazon plans to invest more than €16 billion in Germany in 2027, including in data centres and AI. Berlin has also struck an AI partnership with Nvidia, as CEO Jensen Huang urges German industry to adopt the technology. Economic Strain: Investor sentiment weakened in October, while rising energy costs and the cost-of-living squeeze weigh on households and businesses. German industry has lost nearly half a million jobs since 2019, even as companies face a shortage of skilled workers. Workforce Cuts: BMW is targeting 8,000 job reductions by the end of 2027 and offering some employees severance packages exceeding €650,000.

Investment and AI: Amazon plans to invest more than €16 billion in Germany in 2027, including nearly €5 billion to expand AWS in the Frankfurt area. Berlin also struck an industrial AI partnership with Nvidia, as Chancellor Friedrich Merz urged manufacturers to adopt the technology. Economic Strains: German investor sentiment weakened more than expected in October, while a study found industry has shed nearly 500,000 jobs since 2019. Rising energy prices are squeezing households and businesses: producer prices climbed 6.7% year-on-year in September. Corporate News: Adidas raised its 2026 profit outlook after record third-quarter operating profit, helped by strong full-price sales and a US tariff refund. Merck agreed to buy Silence Therapeutics for $1.3 billion, while Roche has put new German investments on hold. Auto Industry: Volkswagen is recalling nearly 72,700 electric vehicles worldwide over faulty battery cells; about 10,000 are in Germany. Clean Energy: Research and patents for electrolysis are growing, but Fraunhofer says a broad green-hydrogen market remains uncertain.

Investment & AI: Amazon plans to invest more than €16 billion in Germany in 2027, including in data centres, cloud services and logistics. Berlin also struck a partnership with Nvidia to develop industrial AI, aiming to bring the technology into German factories. Industry: German industry has shed nearly 500,000 jobs since 2019, according to an Ifo study, while Roche has put future German investments on hold. Business Deals: Merck agreed to acquire Silence Therapeutics in a deal valued at about $1.3 billion, adding a late-stage rare-disease treatment to its pipeline. Finance: Sparkassen banks have begun offering customers crypto trading through their app, including Bitcoin and Ethereum. Economic Outlook: German investor sentiment weakened more than expected in October, and producer-price inflation hit its highest level since 2023 as energy costs climbed.

Industrial AI: Germany signed a partnership with Nvidia to accelerate AI for factories, robotics and other industrial uses. Nvidia chief Jensen Huang urged manufacturers to act quickly, while Siemens also agreed to work with the chipmaker on AI-operated factories. Industrial strain: Ifo says German industry has shed nearly 500,000 jobs since 2019. Separate research estimates crises have cost the country €420 billion in investment. Investment warning: Roche has put future investments in Germany on hold, adding to concerns about the country’s appeal as a business location. Biotech deal: Darmstadt-based Merck agreed to buy Silence Therapeutics for $1.3 billion, adding an RNA-drug candidate to its pipeline. The deal is expected to close in 2027. New manufacturing: UPM opened a €1.5 billion biorefinery in Germany to make renewable chemicals from wood, expanding the country’s push into fossil-free industrial production.

Industrial AI: Nvidia and Berlin unveiled a pact to bring chips, software and engineering expertise into German factories, with Siemens and Audi among the expected participants. CEO Jensen Huang urged manufacturers to make better use of industrial data, arguing AI can strengthen rather than replace heavy industry. Corporate Deals: Merck KGaA agreed to acquire Silence Therapeutics for $1.3 billion, adding a promising RNA treatment for a rare blood cancer to its pipeline. Investment Alarm: Roche has put future German investments on hold. Separate research says German industry has lost nearly 500,000 jobs in seven years, while crises have cost the economy €420 billion in investment. Automotive Pressure: Volkswagen is reportedly weighing a pay freeze through 2030 as job cuts loom. Markets: Unrest in France rattled European markets; Germany’s DAX fell 1.36% and French government borrowing costs jumped.

Investment Push: Berlin’s “Invest in Germany” summit is seeking private-sector backing, with Nvidia chief Jensen Huang among the guests. But investment in Germany fell 6.4% from 2019 to 2025, and business groups say high energy and labour costs and bureaucracy remain major barriers. Automotive Industry: France and Germany have agreed to ease EU emissions rules, allowing combustion-engine cars beyond 2035 while tightening “Made in Europe” requirements. Automakers warn that excluding partners such as Türkiye and Japan could raise costs and weaken supply chains. Industrial Expansion: Rheinmetall and MSC have acquired Romania’s Mangalia shipyard for €138 million, aiming to develop it for civilian and military shipbuilding. Banking: Deutsche Bank plans to launch crypto custody in Germany within weeks, subject to regulatory approval, and expand the service into Asia in 2027. China Competition: Nio reported more Q3 sales in China than BMW, Mercedes-Benz or Audi individually, underscoring the pressure on German premium carmakers in a key market.

Auto Industry: France and Germany agreed to loosen EU car-emissions rules and link the 2035 framework to “Made in Europe” sourcing, a bid to protect manufacturers that has drawn criticism from climate advocates and parts of the industry. AI and Industry: Berlin is preparing a partnership with Nvidia to expand AI use in German industry, while the government’s broader push for industrial AI aims to strengthen domestic competitiveness. Economic Outlook: Germany’s recovery slowed in the third quarter as energy costs and shipping disruptions added to inflation pressures; wholesale prices reached a more than three-year high. Banking: Italy’s UniCredit won ECB approval to take control of Commerzbank, intensifying scrutiny of foreign ownership of a major German lender. Trade and Energy: Germany’s trade surplus with China is set to shrink as its automotive advantage erodes, while the country added 12.63 GW of solar capacity in the first nine months of 2026. Corporate Risk: Moscow’s takeover of more European company assets is escalating the risks for businesses caught in retaliation over the Ukraine war.

Automotive Industry: Germany and France struck a deal to support Europe’s carmakers, linking more flexible 2035 emissions rules to a “Made in Europe” push. German car groups say the agreement is a step forward but want further changes. Trade with China: Brussels is preparing new powers to restrict Chinese access to the EU single market as the bloc’s trade deficit with China widens. Banking: UniCredit has won ECB approval to take control of Germany’s Commerzbank, sharpening the prospect of a major cross-border takeover. AI and Industry: Germany is preparing an expanded AI partnership with Nvidia to bring the technology into industry. Economic Outlook: Germany’s recovery slowed in the third quarter as energy costs, inflation and shipping disruptions weighed on activity. A separate warning over soaring energy prices highlights the pressure on European businesses and consumers. Volkswagen: The automaker has launched a recall affecting several thousand EVs after identifying a battery-cell flaw that could, in rare cases, cause a fire.

BMW Restructuring: BMW has set aside €1 billion for voluntary severance as it plans to cut up to 8,000 jobs, mainly in Germany. It expects annual savings of about €1 billion from 2028. Energy Security: EU purchases of Russian liquefied natural gas rose 9.5% in the first nine months of 2026, despite the bloc’s pledge to phase out Russian energy. Berlin Housing: Coalition talks have produced a plan to bring around 160,000 apartments into public ownership, affecting large property companies including Vonovia. Auto Industry: France and Germany agreed to ease proposed 2035 emissions rules while backing “Made in Europe” requirements, aiming to protect the region’s carmakers and jobs. Industrial Investment: UPM has opened a €1.37 billion biorefinery in Leuna, producing wood-based chemicals intended to replace fossil-based materials. Banking: Deutsche Bank expects to launch Bitcoin and Ether custody services for institutional clients in Germany within weeks.

Auto Industry: Germany and France agreed to ease EU car-emissions rules and link support to “Made in Europe” production, a bid to shore up the sector. The proposal could include the UK but excludes Türkiye, a major supplier, and still needs EU and parliamentary approval. Trade with China: EU leaders backed a new tool to restrict single-market access quickly in a trade conflict, as Brussels warns its trade deficit with China is worsening. Beijing rejected claims that EU pressure secured recent limits on Chinese hybrid-car imports. EU Budget: Chancellor Friedrich Merz called for cuts to the bloc’s next long-term budget, arguing funds should focus on defence and competitiveness. Industry and Investment: Germany is preparing an AI partnership with Nvidia to expand industrial use, while power-supply startups are exiting as wholesale prices soar. Separately, ECB approval gives Italy’s UniCredit a path to take control of Commerzbank, a major shift for German banking.