25,000 Vehicles Financed by Credit Unions

Ray Birch, CU Journal
February 26, 2009 | COMMENTS

Invest in America keeps rolling along, generating 25,000 car and truck sales for GM and Chrysler in January.

Latest projections have the credit union auto discount program producing 300,000 to 1 million vehicle sales for GM and Chrysler through 2009, and potentially $10 billion in new credit union car loans. The estimates were arrived at, explained Michigan Credit Union League President David Adams, by factoring in the typically slow car buying month of January and the fact that credit union and car dealer involvement is still growing. More than 90% of the 25,000 vehicle sales were financed with auto loans from credit unions, generating an estimated $500 million in new credit union loans.

"GM and Chrysler see the value of Invest in America and we are confident they will want a long-term relationship," Adams said.

Anant Kamat, Chrysler senior manager of U.S. retail incentives, didn't downplay the idea of a program extension. "At this point we are happy with the results," he said. "So we will look at options in the next few months to see what we do beyond our current agreement."

Invest in America, which launched in December as a 12-state program, went nationwide in January. Both GM and Chrysler have agreements to participate in Invest in America through June 30, 2009.

Adams said talks with Ford continue, but is unsure of the automaker's plans. "I can't speak for Ford," he said. "But Ford's captive finance company is wholly owned by Ford, and that could have something to do with it. Perhaps GM and Chrysler have had a greater need to find alternative financing sources."

This article appeared at www.cujournal.com and is reprinted with permission.