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Noor Bazmi

Germany's Ifo index stalls at 87.6 as IG Metall threatens action against Volkswagen and Mercedes

On January 26 2026, data from the Ifo Institute showed Germany's business climate index stuck at 87.6 in January, unchanged from December and below the anticipated 88.0. At the same time, IG Metall signaled it could step up pressure on Volkswagen, Mercedes-Benz and other manufacturers over cost-cutting, relocations and planned job reductions that may reach nearly 100,000 positions by 2030. While some companies report stronger cash flow from delayed investments and restructuring, German car production remains about 11% under 2019 levels despite stimulus measures and signs of a broader economic recovery.
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