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Volkswagen investigated for stock fraud, following last month’s name-change saga – report

Volkswagen stock spiked by more than 10 per cent following the false claim it was rebranding as 'Voltswagen' in the USA.


The United States Securities and Exchange Commission (SEC) is currently investigating Volkswagen for stock fraud following last month’s controversial name-change ‘prank,’ according to a new report from Reuters.

On 29 March 2021, the German automotive conglomerate announced via an official press release it was changing its name to Voltswagen in the US, as part of a wider bid highlighting the shift towards electrification.

Representatives confirmed the bizarre move and explicitly told media outlets (including Reuters, The Wall Street Journal, CNBC, The Independent and USA Today) the announcement was not a marketing stunt, going to far as to provide fake quotes from US CEO Scott Keogh.

A spokesperson for the brand in Australia repeatedly assured Drive – and other local publishers – the name-change was going ahead across the pond, but noted: “[The decision to rebrand] is purely a US gambit."

In the wake of the ‘news' Volkswagen’s stock price spiked more than 10 per cent, from €218.85 (AU$340) to €246.55 (AU$390). However, since the hoax was rumbled, shares have fallen back to €216.70 (AU$335).

Drive reached out to the US Security Exchange Commission for comment when the story broke last month. A spokesperson at the time said: “[We] do not have statements or comments at this time.”

The same spokesperson has been re-approached for further information. This story will be updated when more information becomes available.

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William Davis

William Davis has written for Drive since July 2020, covering news and current affairs in the automotive industry. He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy. As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic. Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.

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