DETROIT — Credit unions certainly fit into GM's future plans, the automaker recently told more than 100 CUs during a nationwide conference call.
While the meeting between GM senior leaders and credit unions may not signal that GM is ready to commit to a longer-term agreement with Invest in America-its current deal with the CU auto-buying discount program ends Dec. 31, 2009-it sends strong signs that the carmaker recognizes the ongoing value of credit union financing and the purchasing power of CU members, explained GM spokesman John. M. McDonald. "More than anything it emphasizes the shift in the way the automobile finance market is running now," he said, pointing to the pullback by the captive financing companies. "With the financial meltdown credit unions have provided a tremendous source of stability and a tremendous pool of potential customers."
McDonald added that GM senior leadership recognizes that in the future credit unions will play a much larger role in how autos are financed.
What continues to impress GM are Invest in America numbers. During the conference call, Mark LaNeve, VP-sales and marketing for GM North America, explained that 60% of credit union members requesting a GM authorization code for a discount are purchasing the vehicle, while the normal rate is about 15% to 20%. He also pointed out that 66% of credit union members buying a GM vehicle are either a new GM customer or are returning after using another company.
The latest numbers for "Invest in America" show more than 190,000 vehicles sold, with credit unions financing more than 150,000 of the sales, resulting in new credit union loans of about $3 billion.
CUcorp CEO David Adams noted that the success of Invest in America is "another positive example of how today's economic climate is creating unprecedented opportunities for credit unions and their members."
