diff --git a/.github/dependabot.yml b/.github/dependabot.yml
index 1865d73..b199ec7 100644
--- a/.github/dependabot.yml
+++ b/.github/dependabot.yml
@@ -4,11 +4,26 @@ updates:
     directory: "/"
     schedule:
       interval: daily
-      time: "10:00"
+      time: "06:00"
       timezone: Etc/UCT
-    reviewers:
-      - "Johannes-Schneider"
     open-pull-requests-limit: 10
+    groups:
+      production-minor-patch:
+        dependency-type: "production"
+        update-types: [ "minor", "patch" ]
+        exclude-patterns:
+          - "*-plugin"
+      production-major:
+        dependency-type: "production"
+        update-types: [ "major" ]
+        exclude-patterns:
+          - "*-plugin"
+      plugins:
+        dependency-type: "production"
+        patterns:
+          - "*-plugin"
+      test:
+        dependency-type: "development"
     ignore:
       - dependency-name: "com.github.ekryd.sortpom:sortpom-maven-plugin" # newer versions require Java > 8
       - dependency-name: "net.revelc.code.formatter:formatter-maven-plugin" # newer versions require Java > 8
diff --git a/.github/workflows/dependabot-automerge.yml b/.github/workflows/dependabot-automerge.yml
index de319bb..c33aea8 100644
--- a/.github/workflows/dependabot-automerge.yml
+++ b/.github/workflows/dependabot-automerge.yml
@@ -1,41 +1,73 @@
 name: dependabot merger
 
 on:
-  pull_request:
-    branches: [ main ]
+  workflow_dispatch:
+  schedule:
+    - cron: '17 09 * * *' # trigger daily at 09:17 a.m., as dependabot will create new PRs daily at 6:00 a.m.
 
+env:
+  DEPENDABOT_GROUPS: |
+    production-minor-patch group
+    plugins group
+    test group
+    github-actions group
 jobs:
-  review-pr:
+  review-prs:
     runs-on: ubuntu-latest
-    if: ${{ github.actor == 'dependabot[bot]' &&
-      github.event_name == 'pull_request' }}
     permissions:
       pull-requests: write
       contents: write
     steps:
-      - name: dependabot metadata
-        id: metadata
-        uses: dependabot/fetch-metadata@v2.1.0
-        with:
-          github-token: '${{ secrets.GITHUB_TOKEN }}'
-      - name: setup git
-        run: |
-          git config --global user.email "cloudsdk@sap.com"
-          git config --global user.name "SAP Cloud SDK"
-      - name: comment major updates
-        if : ${{ steps.metadata.outputs.update-type == 'version-update:semver-major' }}
-        run: |
-          gh pr comment $PR_URL --body "PR **not approved** because it includes a major update of a dependency"
-          gh pr edit $PR_URL --add-label "please review"
-        env:
-          PR_URL: ${{ github.event.pull_request.html_url }}
-          GH_TOKEN: ${{ secrets.CLOUD_SDK_AT_SAP_ALL_ACCESS_PAT }}
-      - name: approve and merge
-        if: ${{ steps.metadata.outputs.update-type == 'version-update:semver-patch' ||
-          steps.metadata.outputs.update-type == 'version-update:semver-minor' }}
+      - name: Checkout
+        uses: actions/checkout@v4
+
+      - name: Approve and Merge PRs
         run: |
-          gh pr review --approve "$PR_URL"
-          gh pr merge --auto --squash "$PR_URL"
+          PRS=$(gh pr list --app "dependabot" --state "open" --json number,title,autoMergeRequest,reviewDecision,mergeable,mergeStateStatus)
+          PR_NUMBERS=
+          while IFS= read -r GROUP; do
+            if [[ -z "$GROUP" ]]; then
+              continue
+            fi
+          
+            MATCHES=$(jq -r --arg group "$GROUP" '.[] | select(.title | contains($group)) | .number' <<< "$PRS")
+            echo "[DEBUG] Found PRs for group '$GROUP': '$MATCHES'"
+          
+            PR_NUMBERS="$MATCHES"$'\n'"$PR_NUMBERS"
+          done <<< "${{ env.DEPENDABOT_GROUPS }}"
+          echo "[DEBUG] Approving and Merging following PRs: '$PR_NUMBERS'"
+          
+          while IFS= read -r PR_NUMBER; do
+            if [[ -z "$PR_NUMBER" ]]; then
+              continue
+            fi
+          
+            echo "[DEBUG] Approving and Merging PR #$PR_NUMBER"
+          
+            # check if PR is already approved
+            REVIEW_DECISION=$(jq -r --arg pr "$PR_NUMBER" '.[] | select(.number == ($pr | tonumber)) | .reviewDecision' <<< "$PRS")
+            if [[ "$REVIEW_DECISION" == "APPROVED" ]]; then
+              echo "[DEBUG] PR #$PR_NUMBER is already approved, skipping"
+            else
+              echo "[DEBUG] PR #$PR_NUMBER is not approved yet, approving"
+              gh pr review "$PR_NUMBER" --approve
+            fi
+          
+            # check if PR is already auto-mergeable
+            AUTO_MERGE_REQUEST=$(jq -r --arg pr "$PR_NUMBER" '.[] | select(.number == ($pr | tonumber)) | .autoMergeRequest' <<< "$PRS")
+            if [[ -n "$AUTO_MERGE_REQUEST" ]]; then
+              echo "[DEBUG] PR #$PR_NUMBER is already auto-mergeable, skipping"
+            else
+              echo "[DEBUG] PR #$PR_NUMBER is not auto-mergeable yet, enabling auto-merge"
+              gh pr merge "$PR_NUMBER" --auto --squash
+            fi
+          
+            # check if PR is behind, so we can instruct dependabot to rebase
+            MERGE_STATE_STATUS=$(jq -r --arg pr "$PR_NUMBER" '.[] | select(.number == ($pr | tonumber)) | .mergeStateStatus' <<< "$PRS")
+            if [[ "$MERGE_STATE_STATUS" == "BEHIND" ]]; then
+              echo "[DEBUG] PR #$PR_NUMBER is behind, instructing dependabot to rebase"
+              gh pr comment "$PR_NUMBER" --body "@dependabot rebase"
+            fi
+          done <<< "$PR_NUMBERS"
         env:
-          PR_URL: ${{ github.event.pull_request.html_url }}
           GH_TOKEN: ${{ secrets.CLOUD_SDK_AT_SAP_ALL_ACCESS_PAT }}