The problem is the Chinese market, which has been a huge market for VW. That’s where they failed to come up with a viable competitor to the cheap EVs that are selling like hotcakes in China. Yes, the U.S. sales have been lackluster but that’s not what is driving VW’s woes. The U.S. is a relatively small market for VW.
It’s in Likud’s founding charter, so yeah, pretty well telegraphed.