According to [1] Volkswagen was the third largest producer of EVs in 2022, only behind BYD and Tesla. And BMW and Mercedes Benz both are in the top 10. It's not like German automakers have been sitting on their hands or would just die. The problem is not so much the automakers themselves but their suppliers. Those employ far more people, and EVs just don't need a lot of those parts.

1: https://www.ev-volumes.com/wp-content/uploads/2023/02/WW-S3-...