The Volkswagen team motorsport principal Jost Capito stated the following, "We talked about what is best for the future and what’s the best to keep the level of entries up in the championship, and we found that the best way is to stay with the cars we have for this year."
M-Sport responded back with, "We are very grateful for this. As you can imagine for the likes of myself and Yves (Matton, Citroen team principal), it’s a real positive move. We know we can still be competitive next year without having to spend millions on development."
Nice of VW to back off a bit to give others a chance? Absolutely. But just goes to show VW could crush the competition at any moment if they wanted to.