Automotive News reported today that GM's "Invest in America" program has been expanded to 8,000 credit unions nationwide.  GM's latest marketing initiative was first announced on this Blog (see GM Attempts Partnership with Credit Unions in Cynical Marketing Push).

What began as a test program in four Midwestern states with pricing discounts for customer who finance through credit unions, has expanded to encompass more than 90 million credit union members.

Chrysler, which launched a similar program in twelve states, announced Monday that incentives have now been extended to credit unions nationally.   GM continues to refer to it's program as a "pilot."

GM's program gives credit union members "supplier" discounts of roughly 5% plus $250 off the price of most GM vehicles. Chrysler is offering $500 and $1,000 discounts to credit union members. The automakers hope their credit union program will help them compete against overseas-based automakers that generally have healthier finance arms. GM, Ford and Chrysler are struggling amid auto sales that are at their lowest levels in a quarter-century. Tight credit markets have made the situation worse by hobbling "captive finance" companies such as GM's lending unit, GMAC, and Chrysler Financial, which for years have been the primary source of loans for buyers of the automakers' cars.

GM and Chrysler gained access to $17.4 billion in government loans last year to help the companies avoid bankruptcy protection. GMAC also received $6 billion to help jump start automotive lending. Chrysler's finance arm is still waiting to see whether it will receive any funding.  Ford declined to participate in the program, saying its Ford Motor Credit lending arm remains solid despite the tough environment.

Mark LaNeve, GM vice president of North America sales, service and marketing, said in a press release, "We've had very positive responses from our dealers to the four-state Midwest credit union pilot that is currently running. This national pilot really expands the benefits of a great GM supplier price to credit union members all around the country who also have access to affordable financing through their local credit union."

GM's program is slated to run through March 31 nationally, and in Michigan, Indiana, Illinois and Ohio through June.  "Invest in America" offers GM supplier price discounts on new Buick, Cadillac, Hummer, Saab, Chevrolet, GMC, Saturn and Pontiac vehicles.The program includes almost all 2008 and 2009 models, except for the Corvette and medium-duty trucks.

According to a Datatrac survey of more than 17,000 financial institutions, the average credit union loan rate is 5.4 percent, compared with 6.9 percent for the average bank rate the past two months, the Michigan Credit Union League said in a press statement.