I don‘t think it‘s true that there is no competition in the example you give, rather competition simply happens along a differen axis.
In the open source space there are certain characteristics that make your project more likely to succeed. Being, well, open is obviously one of them, just like passing emission tests is a factor in cars. So, open source projects have to be competitive along the openness axis in order to succeed, just like VW needs to pass these tests, one way or the other. To me it seems like the same mechanism really, just fed with different incentives.
In the open source space there are certain characteristics that make your project more likely to succeed. Being, well, open is obviously one of them, just like passing emission tests is a factor in cars. So, open source projects have to be competitive along the openness axis in order to succeed, just like VW needs to pass these tests, one way or the other. To me it seems like the same mechanism really, just fed with different incentives.