U.S. SEC probes VW ‘Voltswagen’ advertising stunt -resource

A Volkswagen emblem is noticed as it launches its ID.6 and ID.6 CROZZ SUV at a globe premiere ahead of the Shanghai Auto Display, in Shanghai, China April 18, 2021. REUTERS/Aly Tune/File Photograph

(This April 29 tale has been refiled to correct typographical mistake in reporting credits)

The U.S. Securities and Trade Fee has opened an inquiry into the U.S. device of Volkswagen’s AG around a marketing stunt in which it falsely claimed it was modifying its title in the United States to “Voltswagen,” a individual briefed on the subject verified.

Spiegel first reported the inquiry and the SEC’s ask for for data about the situation created in early April and quoted VW as confirming the investigation.

Volkswagen declined to remark on the make any difference to Reuters. The SEC did not reply to a request for comment.

The enterprise in March apologized just after a false assertion it issued about a phony identify improve was broadly slammed on social media.

The stunt, which came just ahead of April Fool’s Day on the 1st of the month, when companies usually launch prank statements, was intended to connect with focus to its electrical auto endeavours, the carmaker explained.

The initial statement outlining the identify modify, posted on its website and accompanied by tweets, was documented by Reuters and other retailers globally and incorporated a in depth description of its purported rebranding attempts and new logos.

At the very least one particular analyst wrote a investigation observe praising the title modify. VW’s preferred shares, prevalent shares and ADRs rose on the working day of the phony title announcement.

Volkswagen Team of The usa CEO Scott Keogh explained to Reuters in an April 1 job interview that the phony identify announcement was a “gag” and an endeavor to “have some humor and “to celebrate our profound concentration on electrification.”

Volkswagen in 2015 admitted to working with illegal computer software to rig diesel engine exams in the United States, sparking Germany’s largest company disaster and costing the carmaker more than 32 billion euros in fines, refits and lawful prices.

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