DETROIT – Beleaguered Chrysler LLC announced today it is joining "Invest In America," a program sponsored by 1,200 midwest credit unions to help U.S. automakers by providing cut-rate loans on American-manufactured cars and trucks.
In addition, the Michigan CU League, which is organizing the private-sector bailout of the automakers, said credit unions in another eight states-making a total of 12 states–will offer the low-rate loans, as well. The expanded participation is expected to raise the amount of loans available under the program to as much as $20 billion.
Participating credit unions are providing loans at 4.5%–as much as 150 basis points below market–and the automakers are offering their vehicles at as much as 5% below sticker price, as well as a $250 cash rebate.
Chrysler will offer a larger amount up front: a minimum of $500 to $1,000 depending on the vehicle, layered on top of other incentives. GM's bonus cash offer is for $250 in a deal good until Jan. 5.
The Michigan league is also taking with Ford to obtain its participation.
