LANSING, Mich.-Due to CU member response and sales increases in the original 12-state pilot, GM and Chrysler have expanded participation in the Invest in America auto discount program and are now taking it nationwide.
The move now makes available $80 billion in credit union financing to the two automakers, said Michigan CU League president David Adams, pointing to the program's success. "We've had 1.3-million hits to www.lovemycreditunion.org since the offer began Dec. 8. We normally get about 3,000 hits a week on the site," said Adams. "Some credit unions are reporting 20% to 80% increases in auto loans on an annualized basis. I know that's not all due to the pilot, as credit unions have ample liquidity."
GM's Jim Bunnell, executive director of channel marketing, said the decision to expand was prompted by the "high conversion rate" from CU members coming to car lots for the deal. "We've been seeing a 30% conversion rate, which is very big." While GM's original four-state pilot runs through June 30, 2009, the nationwide pilot is currently scheduled through March 31.
Chrysler has liked what its seen from Invest in America to commit to national participation through June 30. Ed Broadbear, director of incentives and programs for Chrysler, explained the decision was based on the "nice lift in sales we saw in the 12-state pilot, compared with the other 38 states."
Adams hopes the expansion signals a strong possibility that a long-term contract can eventually be reached between CUs and the automakers.
