LANSING, Mich. – Credit unions throughout the midwest, many of which are sponsored by automakers, will unveil a plan today to help General Motors by providing as much as $10 billion in low-rate loans to purchasers of GM brands.
The partnership with Michigan CU League, dubbed "Invest in America," offers new or current members of 1,200 credit unions in Michigan, Ohio, Illinois and Indiana access to lower loan rates, suggested at 5.4%, and about 4.5% off the manufacturer's suggested retail price. Organizers hope to expand the plan nationwide and to other U.S. car manufacturers. Ford and Chrysler have also been invited to join.
In Michigan, more than four million credit union members will be eligible for the discounted vehicle purchases.
The plan comes as Congress is poised to unveil today its own rescue of GM and the other two U.S. automakers, which is expected to include $15 billion in loans from the federal government.
"Credit unions, which have money and are willing to lend, will make billions available in loans on GM brands," a spokesman for the Michigan CU League, which is developing the plan, told The Credit Union Journal yesterday.
GM also will offer current and new credit union members in the four states supplier pricing plus $250 bonus cash. The deal, which can be combined in most cases with other incentives, runs through Jan. 5. For example, buyers would save more than $10,000 on some models of the 2008 Cadillac Escalade sport utility vehicle.
