Volkswagen is getting crushed in China, and it's bad news for German manufacturing and Europe's economy.

• Volkswagen just cut its sales forecast after losing 37% of its China business in a single quarter.
• Chinese buyers now prefer local brands like BYD and Geely, which are cheaper and more advanced.
• BYD makes its own chips and batteries, so it builds EVs far cheaper than Volkswagen can.
• Volkswagen was too slow on electric cars and missed China's early EV subsidies.
• Up to 100,000 jobs are at risk at Germany's largest employer, hit at once by high energy costs, Chinese rivals, and Trump's tariffs.

Outlook: Without cheaper energy and faster innovation, German automakers will keep losing to China, with more layoffs likely.