Learn how technology drives sales at booth 4655

NEW YORK (Jan. 24, 2017) – Automotive dealers compete to target the right customer at the right time with the right offer and message. Dealers have always found ways to accomplish this, but have not had the power of behavior prediction to help. automotiveMastermind (aM) is the leading predictive analytics and marketing automation technology for dealerships and manufacturers – and it’s transforming the sales process. The technology will be on display at the 2017 National Automobile Dealers Association Convention (NADA), taking place Jan. 27-29 at the New Orleans Ernest N. Morial Convention Center. aM is exhibiting at booth 4655.

“Dealers cannot rely on price alone to drive sales – for the first time, they can use a more sophisticated technology to tell them who is ready to buy and why,” said Marco Schnabl, CEO and founder of aM. “Our unique approach is highly successful because we reveal the motivating factors that pertain to each prospective customer. The moment a dealership goes live with our technology is the moment they start to see significant success.”

The aM technology empowers sales teams with key insights and valuable information on its top prospects. Its proprietary algorithm crunches thousands of data points, combining DMS (dealer management system) information with Big Data - including social media, financial, product and customer lifecycle information, to calculate how likely a consumer is to purchase a new vehicle now. The complex data is distilled into one simple number, the Behavior Prediction Score® (BPS), which is a ranking from 0-100. The higher the score, the more likely the customer is to buy. aM takes this information one step further by layering on micro-targeted email and direct mail campaigns. The simple, intuitive nature of the technology speaks for itself.

automotiveMastermind has a proven track record of transforming the dealership experience for consumers and revolutionizing the way automotive dealerships and manufacturers, find, engage and earn long-lasting customer relationships.

NADA attendees can demo the aM technology by submitting an RSVP via this link: https://www.automotivemastermind.com/nada, or visit booth 4655 at the show.

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About automotiveMastermind

Founded in 2012, automotiveMastermind is the leading provider of predictive analytics and marketing automation technology for the automotive industry. The company’s cloud-based platform helps dealers precisely predict automobile-buying behavior and automates the creation of micro-targeted consumer communications, leading to proven higher sales and more consistent customer retention. automotiveMastermind currently works with hundreds of dealerships from various automotive manufacturers, including Acura, Audi, BMW, Cadillac, Honda, Lexus, Mercedes-Benz, MINI and Toyota, and has plans to add more during 2017. automotiveMastermind is headquartered in New York City and San Francisco and has more than doubled its employee count in the last year. For more information, visit automotivemastermind.com or follow them on Twitter @autoMastermind.

Dominion Dealer Solutions’ Dealer Management System Now Integrated with Chrysler’s wiADVISORTM

Norfolk, VA – January 3, 2017- Dominion Dealer Solutions announced today that Dominion ACCESS®, a full-featured dealer management system, has integrated with FCA USA LLC’s wiADVISOR, powered by Dealer-FX. Through this integration, Dominion ACCESS provides wireless, factory-connected service advisor technology to its dealers, arming service advisors with real-time factory information and helping customers get through service lanes faster.

The wiADVISOR technology instantly provides vehicle service history, customer profile information and factory-required maintenance information for Chrysler, Jeep, Dodge, Ram, Fiat and SRT vehicles. Service advisors plug the small wireless device into the vehicle’s diagnostic port in the service lane to download vehicle data and transmit it to a tablet computer for a more accurate and seamless service write-up experience. Customers no longer need to fill out forms or remember license plate numbers when bringing in their vehicles for service at Chrysler dealerships.

Dominion ACCESS is a Windows-based dealer management system that includes document archiving, drill-down reporting and vehicle rental as part of its core suite of applications. Dominion ACCESS gives dealers a built-in prospecting tool, the ability to reference closed deals, personalized dashboards, award-winning customer service, and one customer and vehicle record for all dealership departments. The Dominion ACCESS software has flexible contract terms and no add-on fees for dealers.

“We are pleased to be the pilot DMS for Dealer-FX’s new API. It will give our Chrysler dealers the service write-up tools they need to maximize every opportunity on the drive,” noted Van Koppersmith, president of Dominion DMS for Dominion Dealer Solutions.  “This real-time interface is another technology Dominion has invested in as a commitment to support our valued customers.”

For more information on the Dominion ACCESS dealer management system, or the benefits of the wiADVISOR integration for your dealership, please call 877-421-1040.

Dominion Dealer Solutions Delivers Improved Shopper Engagement with ShopMyWay Website

Norfolk, VA – January 10, 2017- Dominion Dealer Solutions, premier provider of responsive websites for automotive dealers, announced today it has expanded its ShopMyWay website experience to include deeper reporting metrics and increased transparency, improving shopper engagement. With ShopMyWay’s conversion rates more than double the national industry average, today’s auto dealers can give their online shoppers the right information at the right time in the vehicle purchase cycle.

With ShopMyWay, dealers now have integrated website and conversion tools such as My Payment, My Car, and My Trade. Dealers using Dominion websites will see a deeper level of reporting because ShopMyWay integrates with other Dominion Digital Solutions such as Prime Response and VinVelocity. Dealers taking advantage of Dominion’s Prime Response reputation and social media management will have access to ROI reports on all MyPayment leads. The integration with VinVelocity enables dealers to identify the quality of traffic sources from various third-party channels.

“MyPayment, our shop-by-payment solution, has generated an average increase of 77% more highly qualified leads from our dealers’ websites,” noted Nicole Case, general manager for Dominion Digital Marketing.

Dealers using Dominion’s responsive websites are already familiar with its best-in-class performance including two-second page load time, complete integration with Dominion Dealer Specialties’ inventory, and the science-driven design behind its vehicle detail (VDPs) and search results pages (SRPs). Today’s automotive dealers also experience improved consumer engagement provided by ShopMyWay. Dealers using ShopMyWay through Dominion’s responsive websites have .123% higher organic traffic, 54% higher page views, and 63% more VDP views than dealers using other automotive website vendors.

"The best way to increase business today is to build trust with online shoppers. Dominion's ShopMyWay experience enables automotive dealers to strengthen the relationship with their online shoppers without having to depend on third-party leads," stated Sean Stansell, product manager for Dominion’s websites.

ShopMyWay gives dealers the information they need to assist online consumers in choosing the right vehicle with the best payment option and attaining the optimum valuation for their trade. For more information on the benefits of Dominion’s responsive websites and ShopMyWay for your automotive dealership, please call 877-421-1040.

Dominion Dealer Solutions Releases Additional Marketing Modules
 for its Digital Dashboard

Norfolk, VA – January 19, 2017 –Dominion Dealer Solutions has released new equity mining and dealership fixed operations advertising modules in its dealer-facing Dominion Dashboard®. Dominion is an award-winning industry leader in reputation management, social media marketing, responsive websites and equity mining.

Historically, the Dominion Dashboard has served Dominion’s U.S. automotive dealer customers with real-time reporting for digital marketing and advertising, using the automotive industry standard -- Google Analytics. This unique reporting solution provides a single access point for Dominion’s solutions that include inventory management and merchandising, responsive websites, reputation management, search, email marketing, and social media management. The digital dashboard functionality gives dealers the highest level of transparency in their marketing campaigns and results.

In advance of the 2017 National Auto Dealer Association convention and expo and in conjunction with Dominion’s focus on dealership fixed operations, dealers now receive real-time Google Analytics reporting on all equity mining and fixed operations campaigns. These additions have further defined the dashboard as a true marketing epicenter, with the clarity and visibility necessary for automotive dealers to build successful, evolving marketing strategies.

“The addition of these modules to the Dashboard solves the long-standing problem for automotive dealers of having to reach out to multiple vendors to consolidate their campaign results. Now, today’s dealers can go to one place to determine their ROI across all of their marketing channels -- the Dominion Dashboard,” stated Nicole Case, general manager for Dominion Digital Marketing.

With the addition of an equity mining widget integrated through DealActivator, dealers can measure the success of their equity mining campaigns in real time. Dominion’s omni-channel fixed operations module within the Dashboard adds transparent measurement to the digital marketing campaigns that drive both traffic and revenue for a dealer’s fixed operations. It enables dealers to reduce costs, enjoy higher traffic, drive additional revenue per RO, and build deeper customer loyalty.

Built on Dominion’s shopper-centric philosophy, this marketing hub provides a roll-up of key website, social media, equity mining, inventory merchandising, reputation management, SEM and fixed operations advertising metrics. It simplifies a dealer’s reporting tools by bringing together key consumer shopping behavior metrics in one user-friendly dashboard.

For more information on the benefits of the Dominion Dashboard for your automotive dealership or to schedule a demo, please call 877-421-1040.

Yes Lifecycle Marketing recently released a study about gaps in email marketing. Check out the other parts of the series here: Part 1, Part 2.  The third and final gap in email marketing referenced in the study is the gap among smartphone, desktop, and tablet purchases.

For the first time, mobile revenue is driving 1/3 of all email-generated revenue, that’s up 50% from 2014. Smartphone revenue is growing the most, driving 24% of all revenue, which is no surprise.

Smartphone revenue isn’t only accounting for more of total revenue, but smartphone orders have doubled since 2014. With so many people owning smartphones that make email access easy and constantly available, we can expect that smartphone and mobile revenue will only increase over time.

However, while mobile orders are accounting for nearly half of all orders, they are only accounting for 1/3 of the revenue. This tells us that consumers are still making more expensive purchases on desktops.

Smartphones drive 70% of mobile email revenue, leaving tablets the last 30%. But this doesn’t mean tablets are less important, they will just be used differently. Tablets should be considered their own channel, because unlike smartphones, tablet users don’t have their device with them all day long. They are considered ideal use for leisurely surfing, browsing, and shopping.

How can you close this gap?

Consumers are not only engaging with email on mobile, they’re converting. This means it’s very important to use marketing on websites as well as within emails to get the consumer to purchase. Things like location based notifications, coupons and incentives are valuable to help consumers convert.

Here are some interesting insights about remote employees vs. office employees. I know many positions within a dealership don't have the option of remote work, but I'm curious about those who do have the option to work from home. I personally feel I am more productive when I work from home, but there are often conflicting ideas of creating a fun office culture, working with teams and having in person meetings, etc. What are your thoughts?

Columbus, OH – Clarivoy today announced that with its Multi-Touch Sales Attribution solution, Apple Autos has been able to identify $2.2 million of previously unattributable monthly sales (117 vehicles) for their Ford store, providing a much more transparent view of which ads really contributed to sales, helping the dealership increase market share in a down market.

Apple Autos sells 450-500 vehicles per month at its flagship Ford store and spends about $90,000 monthly on marketing, 85 percent of which is digital.

Getting a complete picture of the exact marketing tactic that lead to the sale is a huge pain point for many auto dealers. Alan Krutsch, Director of Marketing with the Minnesota-based Apple Autos Group, became interested in Clarivoy while searching for a multi-touch attribution solution. He started using Clarivoy nine months ago at his Ford store and it has helped increase market share in a tough market by allowing him to finally see exactly where his sales are coming from and better target his marketing spend. He has since added the solution to all the stores throughout the group.

“Many dealers do not know what is actually driving their sales. To be completely dialed in and have full knowledge of that is priceless. Most of the available solutions from advertising vendors or software suppliers were either first touch or last touch models. We wanted to get a more complete picture of the path that customers take from shopping to purchase,” said Krutsch. “As dealers we spend a lot of money on marketing tactics and not enough energy and money on analysis and insight. We were looking for the combination of advertising tactics that most efficiently lead customers to purchase. Clarivoy’s multi-touch attribution solution provides us with a more sophisticated view of the purchase journey,” Krutsch added.

CarSoup, a dominant regional third party automotive site, and Apple Autos’ most prominent local classified site, was the first to accept Clarivoy tagging. As a result Krutsch discovered that view-though traffic from CarSoup to the dealer’s sites was in fact 12 times that of direct referral links. This was an eye-opening discovery for the dealership.

According to Krutsch, third party classified sites have long frustrated dealers. On the one hand they fear being absent when competitor’s vehicles are on a site and theirs are not. On the other, vendor metrics that focus on VDP views, and not leads or sales, make the significant investments that these sites require harder and harder to justify.

“Because of this data we are able to see that CarSoup has more influence on our new vehicle sales than any other site. In a meaningful number of cases, shoppers view a vehicle on CarSoup and then come to Apple Auto’s site to shop. We are also able to attribute sales directly to shoppers who visited CarSoup. However, this site does not do as well on used sales. This is invaluable data and we were able to make changes to our marketing accordingly, which will have quite an impact,” said Krutsch.

Paid search plays a significant role in helping shoppers find what they are looking for when searching for a vehicle. Apple Autos recently switched its paid search and landing page supplier to Dealer Teamwork (DT) and wanted to get a better picture of the effectiveness of its strategy.

Dealer Teamwork and Krutsch take full advantage of Clarivoy’s recent native integration of its Multi-Touch Sales Attribution solution into Google AdWords. The integration includes its proprietary Anonymous Attribution technology, which identifies the online and offline purchase paths of buyers who choose to remain anonymous, ensuring a large percentage of all sales are properly attributed to specific keyword, YouTube and display campaigns. This allows Krutsch to optimize AdWords campaigns based on actual sales data - not vanity metrics.

“Clarivoy’s native integration into Google AdWords allows us to see the keywords that are most often associated with a sale. We can do that for various models and also geographically. Now paid search is much more targeted and we don’t waste money on those terms that don’t work and have the courage to spend heavily on those that do,” Krutsch commented.

Because Dealer Teamwork accepts Clarivoy’s third party tagging, Krutsch can view how DT landing pages and specials work to convert shoppers to leads, as well as how important they have become as part of the purchase path. The new integration into Google AdWords collects and pairs all AdWords clicks and calls to the appropriate vehicle buyer while fractionalizing the credit within AdWords, ensuring no over-attribution to any one keyword, campaign or ad group.

The results have been impressive, including $2.2 million of previously unattributable monthly sales, $1.8 million of which came from branded search terms. “We looked at branded search with much suspicion, like any dealer, thinking that if we have good organic optimization we will get the customer anyway. But these branded terms are very important as the customer is lower in the funnel and closer to pulling the trigger. We rely on these ads to help them make the choice to shop at our store. Now we have the confidence to invest in branded terms and can really see sales directly attributable to those type of searches. In a down market, the ability to identify what is working and what is not, and adjusting our marketing spend accordingly, has at the very least prevented us from going down with it,” Krutsch said.

Other third party classified sites and vendors are now also installing Clarivoy tags. “It makes it so much easier to manage our budgets and hold our vendors accountable. It’s not just acting on hunches any more. We are able to make hard decisions with confidence. Many times if you see a competitor using a certain tactic you think ‘jeez I don’t want to be absent!’ This gives us the courage to make a right turn when everyone else makes a left – and it helps prove our decisions are correct. If more third party classified sites embrace collaborating with attribution providers, retailers will be in a much better position to justify their investment,” Krutsch added.

Using a robust attribution model allows Krutsch to perform experiments and measure the results by their effect on sales, not just clicks and visits. “By using a single platform from a neutral supplier to measure all marketing activities we receive more objective data rather than relying on vendor data which may or may not be biased. Creating a winning marketing strategy is like making soup. Sometimes adding a small amount of the right ingredient at the right time can make a significant difference. By using reliable multi-touch attribution modeling, we can adjust the ‘recipe’ and see the effect on sales,” Krutsch said.

For more information, or to sign up for a product demonstration, visit: http://www.clarivoy.com, or drop by booth # 3475, at NADA 100, January 27-29 in New Orleans, LA.

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About Clarivoy  

Clarivoy is the auto industry’s leading provider of multi-touch sales attribution and advanced digital targeting tools. Their solutions reveal more about their clients’ customers, their advertising and their path to success so they can drive more sales.  Clarivoy’s proprietary technology grants marketers incomparable visibility into their customers and campaigns – across all channels, all devices – online and offline.  Armed with this new information, marketers can stop guessing and start knowing what is working and what is not. http://www.clarivoy.com

Last month, the was our top blog. So we decided to interview Sales Humor creator Ken Kupchik to get learn more about his successful social media platforms, and laughter is the best medicine for us in the auto industry.

Desking tool upgrade makes desking deals more profitable for dealerships

MISSION, Kan. (January 12, 2016) —VinSolutions announced today the availability of Rates & Residuals, a new upgrade to its Connect Desking tool that integrates Dealertrack’s comprehensive lender data to help with more accurate, efficient and profitable deal making.

With the Rates & Residuals enhancement, dealerships now have the ability to structure deals for new and pre-owned vehicles by accessing incentives, rates and programs of both their captive and non-captive lenders, all within VinSolutions. VinSolutions’ Rates & Residuals portal, powered by Dealertrack, returns the top retail and/or lease programs based on consumer credit scores. Access to the portal allows dealership personnel to quickly compare, select and build multiple deal structures in VinSolutions’ desking product and optimize front- and back-end profits. The desking solution offers the opportunity to improve the customer experience with a more streamlined desking process that benefits both customers and dealers.

“At Cox Automotive, we’re always looking for ways to help dealers succeed with their customers. This new desking capability is something we’re pleased to offer and is the first of many exciting improvements in desking and deal management that will be coming in 2017,” said James Maynard, vice president of product for VinSolutions. “Rates& Residuals combines accurate lender data from Dealertrack and deep customer insights from our Connect CRM to help make desking — a critical step in the sales process — more accurate and more profitable than ever.”

To date, several dealerships have participated in a pilot program for Rates & Residuals, with the upgrade being made more widely available in 2017.

“Accuracy is paramount to our business model,” said David Greenly, e-commerce director at Dorschel Automotive Group, a pilot location for the new desking add-on. “The integration of Dealertrack data within VinSolutions is an immense advantage for us as we strive to be more efficient.”

Dealers interested in more information on the Rates & Residuals add-on to Connect Desking can visit VinSolutions at booth #1523 during the 2017 NADA Convention & Expo, January 26–29, at the Ernest N. Morial Convention Center in New Orleans.

About VinSolutions

VinSolutions helps make every customer connection count by providing individual dealers and dealer groups with sophisticated yet easy-to-use software solutions that span the scope of dealership operations. With its cloud-based system, VinSolutions’ all-in-one internal management, sales and service marketing solutions platform is accessible from anywhere an Internet connection is available, including mobile devices.

VinSolutions has been named to the Inc. 5000 every year since 2011 and has received numerous industry awards for its innovative products. VinSolutions is OEM certified by every major manufacturer and is Autosoft, CDK, Reynolds & Reynolds and Dealertrack DMS certified. Founded in 2006 and headquartered in Mission, Kansas, VinSolutions is a Cox Automotive™ brand. Visit VinSolutions online atvinsolutions.com

Toyota dealerships will now be able to increase vehicle sales with automotiveMastermind

NEW YORK (Jan. 12, 2017) – With so many brands and models for consumers to choose from, automotive dealerships and manufacturers find themselves in a steep competition to target the right customer at the right time with the right offer and message. automotiveMastermind, the leading predictive analytics and marketing automation technology for automotive dealerships, is transforming the sales process by empowering sales teams with key insights and valuable information on its top prospects. Today, the company announced that Toyota dealerships across the country will now be able to partner with automotiveMastermind.

“Toyota is always on the cutting edge of technology and innovation; designing and building vehicles that consistently exceed expectations. The reveal of the redesigned subcompact crossover SUV, the CH-R, is one example; with Toyota’s focus on a growing and competitive vehicle class, our technology can help dealers identify the rapidly changing consumer behavior toward crossover SUVs,” said Marco Schnabl, co-CEO and founder of automotiveMastermind. “We have experienced tremendous success with Toyota’s sister brand, Lexus, just one month after a successful pilot program, we secured about 20 percent of all Lexus dealerships. We are looking forward to providing the Toyota sales teams with relevant insights about their customers, helping transform their existing sales process and ultimately closing more sales.”

Toyota becomes the ninth automotive brand to the automotiveMastermind platform. The company is currently working with Acura, Audi, BMW, Cadillac, Honda, Lexus, Mercedes-Benz and MINI.

"This opens up a new opportunity for us to communicate with millions of existing Toyota customers to improve sales and retention for their brand," said Andrew Gillman, vice president of sales and marketing for automotiveMastermind. “Our behavior prediction technology shows dealers what customers they should be contacting and marketing to in order to increase sales in the fastest, most efficient way. We have seen our dealer partners experience significant increases in sales as well as growth in customer retention immediately upon implementing our technology.”

The technology leverages Big Data analytics. In addition to dealer management system (DMS) data, more than 1,000 data points from external sources are analyzed through the propriety algorithm to generate the Behavior Prediction Score ® or BPS. This information is fed directly into the salesperson’s desktop, providing customer specific talking points and behavior drivers, complemented with customized micro-targeted predictive marketing campaigns that are delivered directly to consumers.

automotiveMastermind has a proven track record of transforming the dealership experience for consumers and revolutionizing the way auto dealers and manufacturers, find, engage and earn longstanding customer relationships.

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About automotiveMastermind®

Founded in 2012, automotiveMastermind is the leading provider of predictive analytics and marketing automation software for the automotive industry. The company’s cloud-based technology helps dealers precisely predict automobile-buying behavior and automates the creation of micro-targeted consumer communications, leading to proven higher sales and more consistent customer retention. automotiveMastermind currently works with hundreds of dealerships from various automotive manufacturers, including Acura, Audi, BMW, Cadillac, Honda, Lexus, Mercedes-Benz and MINI and has plans to further expand its OEM partnerships in 2017. automotiveMastermind is headquartered in New York City and San Francisco and has more than doubled its employee count in the last year. For more information, visit automotivemastermind.com.

Originally Published By Bloomberg

Volkswagen AG’s supervisory board and U.S. officials are set to sign off on a $4.3 billion settlement of U.S. criminal and civil penalties for rigging diesel-powered cars to cheat on emissions tests, the latest step in the carmaker’s effort to resolve the scandal.

The agreement with the U.S. Department of Justice and customs authorities will include a guilty plea, VW said Tuesday. The board plans to meet Wednesday to review the agreement.

U.S. officials are holding a press conference Wednesday afternoon to announce the settlement. Attending the event will be Attorney General Loretta Lynch, EPA Administrator Gina McArthy, FBI Deputy Director Andrew McCabe, Acting Deputy Secretary Russell C. Deyo for the Department of Homeland Security and U.S. Attorney Barbara L. McQuade from the Eastern District of Michigan in Detroit. 

The accord raises the committed cost of settlements in the scandal so far to more than $23 billion in the U.S. and Canada, blowing through the $19.2 billion the carmaker had set aside to resolve the disputes. At the same time, it would remove one of the last big regulatory obstacles for Volkswagen before the Jan. 20 inauguration of Donald Trump as U.S. president, enabling the carmaker to begin rebuilding its reputation in the country and focus on plans for clean-energy vehicles.

“Although the settlement is higher than reports had indicated, we view the resolution as a positive catalyst for Volkswagen since it removes the final known major liability” from the diesel scandal, even with other legal issues pending, analysts at Goldman Sachs, including Stefan Burgstaller in London, said in a report to clients.

U.S. courts must still approve the settlement. VW also is involved in investor lawsuits in the U.S. and in Germany related to how the emissions-test rigging affected the stock price, as well as consumer lawsuits and a criminal probe in Germany.

Concluding those disputes will be important as CEO Matthias Mueller seeks financial resources to shift the carmaker -- which almost certainly overtook Toyota Motor Corp. as the world’s biggest last year -- to new technology including electric powering systems and automated driving. That strategy will cost more than $10.5 billion in investments by 2025, the company said in June.

At least one employee is facing charges in the U.S. and another has already pleaded guilty related to the scheme. U.S. prosecutors are planning to charge high-level VW executives based in Germany, a person familiar with the matter said.

The draft settlement calls for strengthening compliance systems and installing an independent monitor for three years, Volkswagen said in the statement. The company didn’t say in its statement whether additional individuals would be charged or plead guilty. The Justice Department declined to comment.

U.S. authorities uncovered the carmaker’s efforts to deliberately cheat on emissions tests on diesel vehicles in 2015. The rigged engines had been installed in 11 million vehicles worldwide, and cost former CEO Martin Winterkorn his job.

Bridge loan

The carmaker, which plans to post a provision in the fourth quarter of 2016, has the resources to absorb the costs. The company had net liquidity of $32.6 billion in the automotive division at the end of the third quarter, and extended a $21 billion bridge loan facility through mid-2017 to provide an additional financial cushion and protect its credit rating.

Volkswagen’s 2016 financial performance will be hurt by the settlement, Porsche Automobil Holding SE, the investment vehicle of the Porsche and Piech billionaire families that controls 52 percent of VW’s voting stock, said in a statement on Tuesday.

VW engineer James Liang pleaded guilty in September in U.S. federal court in Detroit to conspiring to defraud U.S. regulators and consumers. Liang, who was involved in creating a defeat device so cars with 2.0-liter diesel engine could pass emissions tests, is scheduled to be sentenced May 3 and faces as long as five years in prison. He’s cooperating with prosecutors.

Oliver Schmidt, the company’s liaison with U.S. environmental regulators, was arrested Saturday in Florida and is scheduled to appear in court there again Thursday.

Photo credit: Bloomberg

The 16-month saga could still have further to run, with U.S. authorities investigating who was individually responsible for the cheating and VW facing probes and lawsuits in Europe and elsewhere.

Partial victory

"This is a partial victory, but VW is by no means out of the woods yet," said Ingo Speich, a fund manager at Union Investment which holds about 0.6 percent of VW preference shares. "There are still considerable litigation risks."

"Facts need to be revealed now and, if necessary, further steps need to be taken regarding individuals to regain the trust of capital markets," Speich said.

Most analysts had expected the U.S. settlement, which VW has raced to conclude before the Obama administration bows out on Jan. 20, to cost the carmaker around 3 billion euros.

VW admitted in September 2015 to installing secret software in hundreds of thousands of U.S. diesel cars to cheat exhaust emissions tests and make them appear cleaner than they were on the road, and that as many as 11 million vehicles could have similar software installed worldwide.

Questions remain

Erik Bomans, a managing partner at Deminor which is working with some investors on a claim against VW, said those responsible for the scandal had to be brought to justice.

"What we hope is that there has not been a trade-off in the discussions between Volkswagen and the U.S. Department of Justice, a trade-off that could be 'we as a company plead guilty and we are willing to pay a big fine, but in exchange for that, you, Department of Justice, you allow us ... not to mention anything about the personal involvement of certain key, senior managers of the company'," he said.

Greg Archer, director of clean vehicles at green campaigners Transport and Environment, said VW's admission of criminal misconduct in the U.S. was unlikely to have implications for lawsuits in Europe, where a loophole in the regulations has effectively allowed automakers to routinely exceed official emissions limits.

The European Commission in December began legal action against Germany, Britain and five other EU member states for failing to police emissions test cheating.

"They are ineffective and they are in urgent need of reform," Archer said of the national regulators responsible for approving new vehicles in the EU.