Volkswagen’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, three people briefed on the matter told Reuters.
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 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.
“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. “We will provide additional updates on this matter soon,” he added.
Volkswagen is expected to issue a fresh statement on the matter on Wednesday, 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.
VW had said it mistakenly published a draft of the fake release on Monday and took it down after some reporters wrote stories about it. It then issued the “official” announcement on Tuesday, two days before April Fool’s Day.
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 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 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 U.S. Justice Department over the automaker’s diesel emissions scandal. – Reuters