GM, Chrysler, Credit Unions Expand Loan Programs

The program started in December as an deal between Detroit-based GM and about 1,200 credit unions in Michigan, Indiana, Illinois and Ohio. The credit unions in those states set aside $10 billion to finance auto purchases and partnered with GM to offer their members a "supplier discount" plus $250 off the purchase price of GM vehicles.

A supplier discount is about 5% off the manufacturer's suggested retail price of a vehicle and is in addition to any other discounts and incentives already offered.

Jim Bunnell, executive director of channel marketing for GM, said the automaker has been pleased with the response from its original program, noting that 30% of the people who requested an authorization code for the program ended up buying a new GM vehicle.

"We also got a lot of calls from our dealers, so it was an absolute natural for us to open this up to all 50 states," Bunnell said.

GM posted an overall sales drop of 31% for the month.

A week after GM's original announcement, a group of credit unions in the Midwest and South pledged another $12 billion in low-cost auto loans for member purchases of vehicles from Auburn Hills, Mich.-based Chrysler.

Chrysler offered members of the 2,500 credit unions in those 12 states rebates of $500 or $1,000 on nearly all Chrysler, Jeep and Dodge vehicles financed through the credit unions.

Ed Broadbear, Chrysler's director of incentives and programs, said the states involved in Chrysler's original program saw a "significant sales lift" compared with rest of the country in December. Overall, Chrysler posted a 53% drop for the month.

GM's expansion of the offers to all 50 states expires at the end of March, while its original agreement with credit unions in the four states runs until June 30. Both Chrysler's original and expanded programs run through June 30.

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