Volkswagen of America is changing its name to Volkswagen Group of America from 1 January.

The company said the new name better reflects the fact that the group in America includes five distinct brands - Audi, Bentley, Bugatti, Lamborghini, and Volkswagen - as well as the related financial services functions of Audi, Bentley and Volkswagen credit units.

"Our company, like the entire Volkswagen Group, has grown dramatically since our formation in the United States in 1955. Our new corporate name allows our individual brands to flourish, while recognising that we have a common support structure that gives us great strength as we face our competitors," said president and chief executive officer Stefan Jacoby.

"The new name… reflects the much wider array of goods and services we now offer, and prepares us for even more activities in the future."

Operating under the umbrella of Volkswagen Group of America, the Volkswagen and Audi brands will continue to provide sales and service under their names, Volkswagen of America and Audi of America.