No VW US name change as company says fake release was an April Fool's marketing stunt
At least one analyst wrote a research note praising the name change. VW’s preferred shares closed 4.7% higher. Ordinary shares closed up 10.3%
German automaker Volkswagen AG's US unit issued a false news release on Tuesday claiming it would rename its US operations as "Voltswagen of America" in a marketing stunt designed to call attention to its electric vehicle efforts, the company said on Tuesday.
VW came under criticism on social media for its misleading news release, some commenters recalling the company's diesel emissions scandal and years of misleading customers and regulators.
"Volkswagen of America will not be changing its name to Voltswagen. The renaming was designed to be an announcement in the spirit of April Fool's Day, highlighting the launch of the all-electric ID.4 SUV and signaling our commitment to bringing electric mobility to all," a VW US spokesman said in a statement.
The news release, posted on its website and accompanied by tweets, was reported by Reuters and other outlets globally and included a detailed description of its purported rebranding efforts and new logos. The company pulled it late Tuesday.
A Volkswagen spokesman in Germany called the rebranding a "nice idea" with a focus on marketing. Volkswagen Group of America CEO Scott Keogh did not respond to messages.
At least one analyst wrote a research note praising the name change. VW's preferred shares closed 4.7% higher. Ordinary shares closed up 10.3%.
The world's second-largest carmaker expects to double electric vehicle deliveries and boost profits for its core brand this year after stepping up its switch to fully electric vehicles.
Some VW officials have expressed frustration that its significant US EV efforts have not drawn as much attention as Tesla or General Motors.
The Volkswagen brand aims to invest 16 billion euros ($19 billion) in electrification and digitalization by 2025. It has committed to sell one million EVs worldwide by 2025.
Volkswagen in 2015 admitted to using illegal software to rig diesel engine tests in the United States, sparking Germany's biggest corporate crisis and costing the carmaker more than 32 billion euros ($38 billion) in fines, refits and legal costs.
In 2017, VW pleaded guilty to fraud, obstruction of justice and making false statements as part of a $4.3 billion settlement reached with the US Justice Department over the automaker's diesel emissions scandal.
