2- VW faced wtih dilemma. Stop selling diesels altogether, or go rogue and yolo your way through emission tests.
3- Get caught and fined.
Well played, GM, Ford, and Chrysler. GM, Ford, and Chrysler were behind in Diesel tech, so this as a great defensive move to thwart Japanase and European automotive competition.
Moral of the story is: You need good lobbyists if you wanna be successful here.