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This software failure is particularly concerning given the increasing competition from companies like Tesla, which have prioritized software as a core competency from their inception. The fallout from VW's software struggles has further diminished consumer confidence, leaving VW in a precarious position.

A Strategic Pivot: Price Wars and New Ventures

In response to the dire situation, VW has pivoted its strategy, engaging in price wars with Chinese competitors as it seeks to regain market share in China. Despite previous resistance against entering a price war, VW's recognition of the need to compete on price reflects a significant shift in tactics as the company confronts its diminishing presence in the market.