> Is there something I am missing here?
Yes: the fact that many other automakers all over the world were caught as well, but you only remember VW. And my guess is that for the ones that weren't caught it was just that: they weren't caught.
Basically, European politicians had created every tighter fuel and emissions standards that really couldn't be met (the leaner you burn the more NOx and other nasties, if you want to burn cleaner, you need a richer mixture). So enforcement of those standards was "wink wink, nudge, nudge", and everyone was in on it.
Except the pesky Americans.
Buying gas from Russia is sensible, see "Ostpolitik".
https://en.wikipedia.org/wiki/Ostpolitik
Phasing out nuclear and increasing coal is just nuts. Nuclear should, if anything, be expanded, but it's the third rail of German politics. The populace has been so brainwashed on this topic that logic just doesn't apply. Kinda like guns in the US.
The financial class in most countries sees itself as above the law. Cumex was worse in many ways, but what the banks have been doing in the US, Japan or the UK is hardly better. In fact, the US legal system officially declined to pursue HSBC's brazen money laundering, because going after the bank might lead to financial instability. Carte Blanche. And don't get me started on Goldman Sachs.
Heck, the moneyed classes in the UK took the country out of the EU, never mind the enormous economic, social and political damage, in order to avoid EU transparency laws.