Technically, parody is using X's IP to comment on X; satire is using X's IP to comment on something else. So if this is parody, it would plausibly fall under America's fair use test.
Satirical software would be a cool new trend in Open Source.
I think about things like a library for leader election, where there is a "Russian hacker" service that manipulates the election result or maybe a logging framework that accumulates logs and occassionally emails them to journalists.
VW, presumably, has armies of software engineers/other technical people (That you might find on HN, etc) so I don't think it's unreasonable to assume someone will stumble across it.
It's also worth saying that even if they don't have a automated system to look for x-infringement, they have many employees who when bored could end up searching for (say) Volkswagen on github.
There is definitely a credible risk of consumer confusion here - when a consumer faces a need to cheat a test it is unclear which Volkswagen the consumer would have to use. I think the original auto Volkswagen has a strong case here (note - IANAL, just another confused consumer).