Yes you see this already for long time in forced induction cars. If you drive like in the cycle you will get good fuel economy, but it you drive like regular people and for example the turbo spools, fuel economy suffers at the expense of performance. What is particularly egregious here is that NOx levels were gamed to 10-40x, not fuel economy (and directly CO2) to something like just 5-10%. In my personal view it is not German government directly so much as for the tax incentives to keep the unrealistic cycles in place (which then the gov gets involved partly for votes and partly for large industry to be able to still easliy sell more reasonably priced cars).