DETROIT – The credit union "Invest in America" automaker assistance program expanded to include yesterday to include Chrysler and is expected to name Ford Motor Co. to the list of participants in the coming days.
The program, which offers cut-rate loans to buyers of U.S.-made cars and trucks and discounted prices, was unveiled last week with an agreement for $10 billion of loans for buyers of General Motors products.
The program is being organized by the Michigan CU League, which serves auto manufacturing credit unions.
Yesterday’s agreement with Chrysler more than doubles the program to $22 billion in loans and 2,500 credit union participating in 12 states through the midwest and south. Chrysler executives cited the measure as it pushes Congress for a massive bailout of the ailing industry. "We are confident that the Invest in America program and credit union member cash will provide significant value for our customers and the economy as a whole during these challenging times," said Steven Landry, Chrysler executive vice president of North America sales.
The Chrysler deal differs slightly than the GM offer. Besides the 4.5% loan to be offered by credit union (compared to average new car loans of $6.9%), Chrysler will offer a larger amount of cash up front: $500 to $1,000 depending on the vehicle, layered on top of other incentives, to customers who use credit union financing. The discount will be applied at the time of sale by dealers who will have a list of eligible credit unions. The deal applies to all 2008 and 2009 vehicles in inventory, with the exception of the Dodge Sprinter commercial van and SRT performance vehicles.
GM's bonus cash offer is for $250.
Both car companies’ deal will run through June 2009.
At GM, the program applies in Michigan, Illinois, Indiana and Ohio. GM spokesman John McDonald said the automaker will monitor it before deciding whether to expand nationally. The eight states Chrysler has added include: Oklahoma, Texas, Kentucky, Arkansas, Tennessee, Louisiana, New Mexico and Mississippi.
