VW's US brand name change an April Fool's prank

Volkswagen AG’s US unit issued a false news release 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 carmaker said.

Volkswagen came under criticism on social media for its misleading news release, with some commentators recalling the company’s diesel emissions scandal and years of misleading customers and regulators.

The initial news release, posted on its website and accompanied by tweets, was reported globally and included a detailed description of its purported rebranding efforts and new logos.

The firm pulled it late on Tuesday.

“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 United States spokesman said in a statement.

“We will provide additional updates on this matter soon,” he added.

Volkswagen was expected to issue a fresh statement on the matter yesterday, a person familiar with the matter said.

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.

“Apparently no one in the approval process at @VW said, hey maybe we shouldn’t lie to the press given the whole, you know, emissions lying thing,” Dawn Kopecki, senior editor for CNBC.com, said on Twitter.

At least one analyst wrote a research note praising the name change. VW’s preferred shares were flat yesterday after closing 4.7 percent higher on Tuesday.

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 (US$19 billion) in electrification and digitalization by 2025. It has committed to sell one million EVs worldwide by 2025.