Volkswagen hoaxes media with fake statement on name change

FILE - In this Tuesday, Feb. 25, 2020 file photo, a worker completes an electric car ID.3 body at the assembly line during a press tour at the plant of the German manufacturer Volkswagen AG (VW) in Zwickau, eastern Germany. Volkswagen plans six large battery factories in Europe by 2030 so it sell more electric cars while driving down battery prices and making electric mobility more affordable, an effort that would reduce dependence on Asian suppliers and help the company compete with newcomer Tesla. (AP Photo/Jens Meyer, file)
FILE - In this Tuesday, Feb. 25, 2020 file photo, a worker completes an electric car ID.3 body at the assembly line during a press tour at the plant of the German manufacturer Volkswagen AG (VW) in Zwickau, eastern Germany. Volkswagen plans six large battery factories in Europe by 2030 so it sell more electric cars while driving down battery prices and making electric mobility more affordable, an effort that would reduce dependence on Asian suppliers and help the company compete with newcomer Tesla. (AP Photo/Jens Meyer, file) (Copyright 2020 The Associated Press. All rights reserved.)

DETROIT – Volkswagen of America issued false statements this week saying it would change its brand name to “Voltswagen,” to stress its commitment to electric vehicles, only to reverse course Tuesday and admit that the supposed name change was a joke.

Mark Gillies, a company spokesman, confirmed Tuesday that the statement had been a pre-April Fool’s Day joke after having insisted Monday that the release was legitimate and the name change accurate. The company’s false statement was distributed again Tuesday, saying the brand-name change reflected a shift to more battery-electric vehicles.

Volkswagen’s intentionally fake news release, highly unusual for a major public company, coincides with its efforts to repair its image as it tries to recover from a 2015 scandal in which it cheated on government emissions tests and allowed diesel-powered vehicles to illegally pollute the air.

In that scandal, Volkswagen admitted that about 11 million diesel vehicles worldwide were fitted with deceptive software. The software reduced nitrogen oxide emissions when the cars were placed on a test machine but allowed higher emissions and improved engine performance during normal driving. The scandal cost Volkswagen $35 billion (30 billion euros) in fines and civil settlements and led to the recall of millions of vehicles.

The company’s fake news release, leaked on Monday and then repeated in a mass e-mail to reporters Tuesday, resulted in articles about the name change in multiple media outlets, including The Associated Press.

In falsely announcing a name change, the company went beyond telling reporters that its news release was legitimate. On Tuesday, the company emailed to reporters a press release that quoted its CEO announcing the fake change:

“We might be changing out our K for a T, but what we aren’t changing is this brand’s commitment to making best-in-class vehicles for drivers and people everywhere,” Scott Keogh, president and CEO of Volkswagen of America, said in the release.

The fake release could land Volkswagen in trouble with U.S. securities regulators because its stock price rose nearly 5% on Tuesday, the day the bogus statement was officially issued. Investors of late have been responding positively to news of companies increasing electric vehicle production, swelling the value of shares of Tesla as well as of some EV startups.