The tight credit market has been the biggest cap on automakers’ sales as of late, but it looks as though at least some of the $700 billion released by the government will be going towards the unfreezing of the credit market and, hopefully, spurring new car sales.
According to Automotive News, credit unions from Michigan, Indiana, Illinois and Ohio have earmarked at least $10 billion for low-cost auto financing in a program dubbed ‘Invest in America’.
The credit unions in those four states – which happen to be heavily intertwined with the auto industry – will be offer financing for its 12 million members for the purchase of General Motors-branded vehicles. “This new arrangement with Midwest credit unions creates a tremendous value for GM and for thousands of credit union members,” Mark LaNeve, GM vice president of vehicle sales, service and marketing, said. “We appreciate the credit unions’ promotional support and are pleased to make this offer.”
The credit unions are exploring similar agreements with Ford and Chrysler .
It’s too early to tell if the new program will help to rally sales – Invest in America kicked off just yesterday – but it should not doubt help GM sell a few more cars.
