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The German auto giant’s US unit briefly released a statement on its website saying it would change its name to “ Voltswagen ” amid the electrification surge.
Volkswagen of America’s alleged name change to “Voltswagen” was an April Fool’s joke gone bad.
On Monday, the automaker briefly posted, and then deleted, a draft press release on its website supposedly announcing it was changing its name to promote electric vehicles. VW then issued a press release on Tuesday committing to rebrand itself as “Voltswagen” in the United States as “a public statement of the company’s future investment in electric mobility.”
Later Tuesday, the company confessed.
“The name change was designed to be an April Fools’ Day announcement,” VW said in a statement after removing the previous version from its US news site. “We will be providing additional updates on this shortly.” Earlier, a VW spokesperson at the German automaker’s headquarters in Wolfsburg called it an “interesting idea” from the marketing department.
VW may have gone too far in its efforts to create a buzz for its electrification push and the ID.4 electric crossover, which has just hit American showrooms. CEO Herbert Diess has taken a more active role in spreading the message that the company can challenge Tesla Inc. as an electric leader and distance itself from a disastrous diesel emissions scandal.
Not funny
These stakes are too high to joke, said Tom Morton, chief strategy officer for the United States at advertising firm R / GA in New York City.
“This is the auto industry’s most pressing challenge: ‘Can you go electric? Said Morton. “Choosing to joke about it undermines their engagement.”
VW has become a stock market darling of late with its announcements of rapid-fire electric vehicles. Its common stock has climbed about 80% this year, giving the company a market value of around 140 billion euros ($ 165 billion). Shares fell 3.2% at the start of intraday trading on Wednesday in Frankfurt.
Diess hosted a Tesla-esque “Power Day” presentation earlier this month in which he pledged to build six new battery factories in Europe. VW plans to deliver 1 million plug-in hybrid and fully electric vehicles this year, and Diess aims to outperform Tesla in electric vehicle sales by 2025. Some analysts predict that will happen much sooner.
It’s not uncommon for companies to use humor to publicize radical change, Morton said. IHOP renamed itself IHOB – the International House of Burgers – in a temporary strain to draw attention to its lunch menu.
“This is mostly done by the fast food brands, where the stakes are lower and they need a little bit of hype,” Morton said, drawing a distinction with the VW situation. “This is a fundamental change of direction for an industry that shapes the world and also an industry where there is a lot of baggage.”
Prior Gaffe
This is VW’s second big marketing blunder recently. The automaker sparked an uproar last year with a video clip showing a black man being controlled by a giant white hand.
The clip produced by the Berlin subsidiary of Omnicom Group Inc., sparked widespread criticism and tension within the company. Powerful union representatives for the automaker called it a “low point” and demanded an overhaul of social media marketing.
VW has vowed to tighten internal marketing controls, but has refrained from removing executives and severing ties with agencies.
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