AfD Threatens Fresh Blow to Merz: Two German States Hold Key Vote The Alternative for Germany (AfD) party's recent electoral success has sent shockwaves through Europe's automotive industry, and this weekend's vote in Berlin and Mecklenburg Western Pomerania may deal another blow to Chancellor Friedrich Merz.
The AfD's populist politics have capitalized on widespread discontent with the existing economic order, which could lead to a toxic mix of protectionism, increased regulatory scrutiny, and reduced investment in research and development for German carmakers.
Mercedes Benz, BMW, and Volkswagen rely heavily on a stable business environment to thrive.