I have seen nothing tangible so far that shows that VW is backing off Diesel cars - perhaps they cancelled their marketing campaign in the US. I would very much like them to focus on EVs, but whether they do remains to be seen. (A very good indicator for that would be that they start building charging infrastructure and introduce some vehicles with more than 100 miles range...)

This article might give you more information: arstechnica.com/cars/2015/10/vw-responds-to-diesel-scandal-says-the-future-is-electric/

They’re focusing on EVs now a lot.

Being from Germany and a Volkswagen owner, I believe it, when they show some real actions, not only declare to focus on EVs. I would be very happy if they do - my next car is electric for sure - but they got to show first.