German Chancellor Merz's conservatives face unexpected setback in wealthy Baden-Wuerttemberg state election Sunday. The CDU, once dominant in this manufacturing powerhouse home to Mercedes-Benz and Porsche, has seen its poll lead nearly disappear against the Greens after 15 years out of power. Local missteps and Merz's declining national support have undermined their position. A loss would significantly damage the chancellor, whose approval has plummeted since taking office ten months ago. The region's economy, representing 11 million people, faces serious headwinds. Major employers are cutting thousands of jobs as industrial transformation accelerates. Robert Bosch plans to eliminate 10,000 positions while shifting production to China. Porsche is shedding nearly 4,000 roles as automotive sector layoffs dominate local news.