LIVONIA, Mich.-A "simple" concept hatched more than four years ago has grown into one of the largest and most successful state league initiatives in the country.
Invest in America, a national CU member discount program, is currently supported by more than 3,300 credit unions-including 419 of the top 500-and 46 state leagues, and reaches more than 80% of the total credit union membership.
That size, along with the program's success, has garnered Invest in America the 2012 Herb Wegner Memorial Award for Outstanding Program from the National Credit Union Foundation.
David Adams, CEO of the Michigan CU League and Affiliates, played a large role in getting Invest in America off the ground. "This was a simple idea borne out of the economic crisis," Adams told Credit Union Journal about the program that initially, in late 2008, was introduced with a focus on bringing business to the then struggling GM and Chrysler. It also sought to provide loan volume to credit unions struggling with auto lending. "Go back to fall of 2008 and early 2009 and it was not just the auto industry teetering on the verge of bankruptcy, it was the country's entire financial system," said Adams.
While the manufacturer deals for CU members have varied over the years, GM and Chrysler typically have given members a discount off the manufacturer's suggested retail selling price. MCUL created www.lovemycreditunion.org to promote the offer, and credit unions, to consumers nationwide. Invest in America is currently run by MCUL subsidiary CU Solutions Group, part of the league's CUcorp subsidiary.
An Idea That Resonated
The concept of Invest in America resonated with carmakers and Americans as the program took off quickly in 2009 and expanded. Through 2011, Invest in America was responsible for more than 500,000 cars sold through GM and Chrysler and $5.4 billion in credit union financing. Adams said it has been rewarding to see the program play a role in the nation's recovery.
"Between 2003 and 20010, millions of jobs were lost in Michigan alone-over 20% of the workforce as the domestic auto industry was crippled," said Adams. "We saw that every day for six or seven years in Michigan. For me and my team it was very satisfying to be part of a program that helped GM and Chrysler in a big way."
Invest in America has also been good for the credit union community, and not just for auto lending. Adams reminded that the program, which was named Credit Union Journal's Innovation of the Year in 2009, has always been more than car-buying discounts. Discounts on Sprint wireless services were being offered through an MCUL program before Invest in America began, and the Sprint offer was rolled under the Invest in America umbrella. The Sprint deal has saved credit union members more than $172 million through 2011.
As Invest in America has grown, the program has evolved. Chrysler, which after 2009 participated inconsistently, is currently not involved, leaving GM as the sole carmaker providing the CU discounts. Invest in America reached out to Ford regularly in the program's first two years, but the U.S. manufacturer never came on board.
Moving, Flowers, & Taxes
While the domestic auto program is what really gave Invest in America its initial brand, and provided the passion for supporting U.S.-based companies, Adams said the plan was always to expand. At the end of 2009, Membership Rewards were added to help increase credit union card transactions and balances. Here CUs couple savings from companies such as Allied Van Lines, FTD, DIRECTV, and TurboTax with their card programs.
Adams noted that at the beginning Invest in America got a big boost from a very good idea that was quickly embraced by credit unions, carmakers and Americans.
But as credit unions continued to struggle with the economy and assessments, keeping CUs highly interested in Invest in America became the bigger challenge than rallying carmakers behind the deal.
"There are a lot of things that can take credit unions' eyes off the program," said Adams. "Even now, with the economic recovery, as things improve, sometimes people have a tendency to move on."
Challenge For Sales Force
To keep Invest in America thriving, Adams said much the load fell on the shoulders of a seven-person national sales force that has done an "exceptional" job of working with leagues and credit unions to share the value of Invest in America. Adams looked back on the huge task of quickly assembling the national sales team in a very short time in early 2009.
"We had to move quickly, much faster than we were accustomed to moving. We knew how big of an undertaking this would be, not only from getting the program started but keeping the momentum going," said Adams, who credited the commitment from state leagues across the country.
Ramping Up Quickly
Early on the appeal was clear, particularly in how quickly GM and Chrysler expanded their support. Piloted in December of 2008 in four states with GM and 12 states with Chrysler-reaching about 1,300 CUs-the Invest in America tests were so successful and economic circumstances so dire that GM and Chrysler took both took their participation nationwide in January 2009.
"Chrysler Financial was going out of business," Adams reminded, "and they had no reliable sources of financing. In the early stage of the program, credit unions were accounting for 40% of the auto financing for Chrysler sales nationwide."
Only two weeks into its deal with Invest in America, Chrysler let CUcorp know they wanted to go nationwide, Adams said. "So I picked up the phone and let my contact at GM know what Chrysler was doing and very quickly GM went nationwide as well."
What's Ahead
Adams believes Invest in America's appeal will continue and said the program is committed to expansion. "We want the credit union community to have a long-term vision for this. This is a partnership that will help them over the long haul enhance membership, build loan volume, generate income and support the economy in the process."
The size and performance of Invest in America are what caught the attention of the National Credit Union Foundation awards and nominating committee, explained committee chair Bob Schumacher, recently retied CEO of MoutainCrest CU and senior consultant for the Paragon Consulting Group in Olympia, Wash. "Never before has the committee scored a program as high as we scored Invest in America."
Adams told Credit Union Journal that one of the biggest questions GM had before Invest in America ever started was, 'Who are you guys and what do you bring to the table?'" The CEO said that question has certainly been answered for all the U.S. automakers. "Mark LaNeve, the former VP of marketing and sales for GM, said to me as he was moving on, 'Thanks for believing in us when no one else would.' I won't forget that."
