The reduction of choice is because of manufacturing problems, not Motability, as you know.
While Motability recover the VAT charged on the car when new, whoever buys it next is charged VAT. The VAT concession doesn’t benefit Motability Operations, it allows them to charge you less. While I agree Motability Operations profits are excessive and lease prices could be lower, those profits aren’t distributed to shareholders as they would be in any other lease company. Motability the charity has responsibility for how the Company operates, and has in the past directed that surpluses are fed back to the charity for it to do its work helping disabled people.