VW drops 'Gamechanger' production at main plant, risking escalation with workers

I understand a couple of things about VW: they are huge, partly state owned and have had historically strong commitments to workers. Today, they are facing strong competition from Chinese car makers selling boring cars at affordable prices.

Generally one could say the time of the car as a fetishized product is coming to an end. Car design will converge like phones and laptops. Some people will buy Apple, some will buy Framework. But VW is HP or Dell. They are only bought because they are useful and/or part of a large contract. Nobody rents a VW Passat for their rap video.

Now, someone with a better understanding than me please tell me: why in the world is VW not going all in on electric? They are even lobbying for an extension of the right to sell petrol cars. Are they so badly trapped that they have to stall change in the market in desperate hopes they can eventually catch up again?