I don't think VW, or any German Car brand for that matter, really wants to sell small (electric) vehicles anymore.

VW desperately wants to cancel the Up! in Europe in favour of SUVs, BMW cancelled the i3 a long time ago and only introduced either EV land yachts or giant EV SUVs since then. Mercedes just launched a new Smart EV (which is actually a Geely) but it's not exactly small.

They don’t make them, how can you seek what you don’t make? They purposefully made less of them and said no one bought them so we’ll keep making giant (expensive) SUVs instead, plus those are easier to make due to the more lenient rules on large “utility” vehicle emissions