The executive director of the American division of Volkswagen, Scott Keo, took responsibility for the joke with the renaming into Voltswagen, which many took to be true. However, according to analysts, it will not be so easy to hush up the situation: an unsuccessful rally may be considered for publishing deliberately false information in order to influence the stock price.
On March 30, Volkswagen published an official release, in which it announced a large-scale rebranding in the US market – the renaming of the entire division to Voltswagen of America. Thus, the concern wanted to highlight the transition to electricity and plans to produce 70 “green” cars under various nameplates by 2029.
A day after the publication of the release, Volkswagen said that it was timed to coincide with April 1, which the manufacturer allegedly sought to celebrate before anyone else. But the early joke has already gone too far.
“We couldn’t even imagine that the joke would be taken seriously. If I have at least some opportunity to regain your trust, I will do it, “The Wall Street Journal quotes Kio’s acquittal.
In addition to numerous publications in the media and social networks, drawing attention to the American debut of the VW ID.4 electric car, the result of the marketing move was a sharp rise in Volkswagen shares – by about five percent. After reports of a joke, they immediately dropped in price and have already returned to their previous values.
Even if the news of the renaming was conceived as a harmless marketing ploy, it can turn into serious trouble for the manufacturer, according to American analysts interviewed by CNN Business. In their opinion, the release can be interpreted as an illegal publication of knowingly false information designed to mislead investors and affect the price of securities. Violations of US law on public statements will inevitably draw the attention of the SEC, experts said.
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