FOM Issues May Come Into Play
ELGIN, Ill. — If the credit union has to look well beyond its city's borders, that might present field of membership issues, suggested Dave Brooke, EVP of Lending Solutions, a direct lending partner for CUs nationally.
"It really depends on the relationships the credit union has in its marketplace and how deep Chrysler has cut in their area. It could be that the dealership that was not producing is in an area in which the next closest Chrysler dealer is 50 miles away."
The pinch, however, could be felt most by the local economies, added Brooke. "It's not just the employees of the car dealerships. It's the restaurant next door that won't serve as many lunches and the parts supplier who won't get as much business. It's going to run deeper, depending on how big the dealership is in their marketplace."
'People Still Have To Buy Cars'BAILYVILLE, Maine — "People still have to buy cars," reminded Dan Daggett, president of Consolidated Solutions here. "That will not change."
Consolidated Solutions provides indirect lending support to 16 credit unions across the Pine Tree State. Daggett said he has received calls from two of Maine's largest Chrysler dealerships — both awaiting Chrysler's decision — looking to his company as a potential outlet if they lose their franchises.
Minimal Effect In San AntonioSAN ANTONIO — The $5-billion Security Service FCU predicted it will not feel the pinch from closed auto dealers. "Indirect lending continues to be strong this month," shared SVP John Worthington, noting SSFCU posted $100 million in indirect auto loans through May 20. "We have a huge network and are well represented by dealerships in all our markets."
CUDL Outlines StrategiesONTARIO, Calif. — Credit Union Direct Lending (CUDL), the largest point-of-sale and indirect auto lending network for credit unions, is working to minimize the impact that the closing of many Chrysler dealerships nationwide will have on credit unions, explained CUDL's Bill Meyer.
CUDL is providing "strategies and steps" to its 700 participating CUs to mitigate any negative impact from the closings, said Meyer, who added that it's "important for credit unions to step forward and take advantage of the opportunity with independent dealers and also strengthen business with those that remain with Chrysler."
