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After shooting themselves in the foot for cheating on emissions for a profit, now smooth brain CEOs think that threatening to take the work to a country without worker rights and with cheap child labor is a good idea to recover their image and reputation.
EU car sales are down in general. Nobody is making cheap cars anymore, so a lot of Europeans just can not afford them. Less cars sold -> less cars produced -> less factories
Also every car maker did cheat on emissions in the US. It is just that VW reputation got hit the hardest.
