Germany in March 2026: the most important developments in economy
In March 2026, Germany's economy news was dominated by the car industry. On 10 March, Volkswagen announced plans to cut up to 50,000 jobs in Germany by 2030, with chief executive Oliver Blume saying the company must save billions each year after its profit fell by nearly half. Volkswagen said US tariffs cost it $5.8 billion in 2025, and Hyundai passed it in annual profit for the first time. BMW reported an 11.5 percent profit drop and Daimler Truck a 34 percent fall. Volkswagen was also reported to be in talks to make parts for Israel's Iron Dome system at a German plant, while it ruled out weapons production at its Osnabrück site. At Tesla's plant near Berlin, the union-independent list won the works council election over IG Metall.
The war involving Iran pushed up energy costs. Fuel prices reached a two-year high, and diesel rose above 2.15 euros per litre. Chancellor Friedrich Merz delayed a decision on a fuel tax cut, and on 26 March parliament approved rules for filling stations, including a requirement to change prices only once a day. Germany, Austria and Japan partly released oil reserves. German inflation rebounded, the Ifo Institute warned that up to 90 percent of German industry could be affected, and Lufthansa halted its Middle East flights until October.
The defence sector grew. Rheinmetall reported a 45 percent rise in earnings and a higher dividend, and it announced a partnership with Boeing on large combat drones. A consortium of Airbus and Rheinmetall was selected to build a military satellite communications network. UniCredit made a takeover bid for Commerzbank on 16 March, aiming for more than 30 percent, and the SPD formally rejected it.
Other items included the sale of Delivery Hero's Taiwan business to Grab for between $600 million and $770 million. BASF opened a multi-billion-dollar production site in Zhanjiang, China, and Telekom and SAP announced new AI initiatives. A strike by ground staff grounded most flights at Berlin's airports.
by WorldBrief & Maksim Micheliov | AI-generated summary
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