Washington:
German automaker Volkswagen AG’s U.S. unit issued a false news release on Tuesday claiming it would rename its U.S. operations as “Voltswagen of America” in a advertising and marketing stunt created to contact consideration to its electric car efforts, the organization mentioned on Tuesday.
VW came beneath criticism on social media for its misleading news release, some commenters recalling the company’s diesel emissions scandal and years of misleading shoppers 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 U.S. spokesman mentioned in a statement.
The news release, posted on its web-site and accompanied by tweets, was reported by Reuters and other outlets globally and incorporated a detailed description of its purported rebranding efforts and new logos. The organization pulled it late Tuesday.
A Volkswagen spokesman in Germany known as the rebranding a “nice idea” with a concentrate on advertising and marketing. Volkswagen Group of America CEO Scott Keogh did not respond to messages.
At least one analyst wrote a analysis note praising the name alter. VW’s preferred shares closed 4.7% greater. Ordinary shares closed up 10.3%.
The world’s second-biggest carmaker expects to double electric car deliveries and increase earnings for its core brand this year immediately after stepping up its switch to completely electric automobiles.
Some VW officials have expressed aggravation that its considerable U.S. EV efforts have not drawn as significantly consideration 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 utilizing illegal software program to rig diesel engine tests in the United States, sparking Germany’s largest corporate crisis and costing the carmaker more than 32 billion euros ($38 billion) in fines, refits and legal expenses.
In 2017, VW pleaded guilty to fraud, obstruction of justice and creating false statements as portion of a $4.3 billion settlement reached with the U.S. Justice Department more than the automaker’s diesel emissions scandal.
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