Germany’s once-mighty auto industry is trembling under pressure that strikes at the heart of that country’s national psyche.

Volkswagen, Mercedes-Benz and BMW, the industrial icons that helped define modern Germany’s former economic might, are reeling from a toxic mix of American tariffs, a botched electric vehicle transition and relentless competition from Chinese manufacturers.

Sales in China, long a key profit engine for these companies, have cratered. Volkswagen moved 26% fewer vehicles there in recent periods. Mercedes saw a 28% drop and BMW slumped 20%. (RELATED: China Picks Up Pace In Global Race To Unlock Limitless Energy)

Company executives are now considering factory closures, model cancellations and tens of thousands of job cuts. Such moves would slow the bleeding, but they’re akin to putting Band-Aids on a bullet wound.

Chinese rivals churn out new models in 18 months or less while Western firms lumber along on multi-year cycles. The result is cheaper, better-equipped EVs flooding markets and eroding the Germans’ once-dominant position. (RELATED: Project Vault Is Not About Mining. It Is About America’s Investment In The 21st Century)

As so often is the case when Western firms enter joint ventures with Chinese companies, what initially were........

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