Volkswagen AG paring back production and Robert Bosch GmbH slashing 13,000 jobs shows how the German auto industry’s decline is rippling through Europe’s biggest economy.

Carmakers and their suppliers are struggling with waning demand, high labor and energy costs and intensifying competition from fast-moving Chinese manufacturers. They’ve poured billions of euros into battery technology only to find out that the shift to electric vehicles will be slower than expected.

The pressures are forcing manufacturers to make painful cutbacks. Bosch’s peers Continental, Schaeffler and ZF Friedrichshafen are also slashing jobs and expenses, while VW, Porsche AG and Ford Motor Co. are reducing staff and output to offset weak sales and President Donald Trump’s tariffs, which are intended to boost manu

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