floraneg

Just got this in my email...



Dear Credit Union Leader:

On behalf of CU Solutions Group, I want to thank you for your support of the General Motors Credit Union Member Discount program. The success of this partnership would not have been possible without the strong support of the credit union industry. Credit union associations promoted the program to their member credit unions. Credit unions marketed it directly to their members and CUSG promoted it to the public. Together, we have helped GM sell close to 1 million vehicles during these past six and a half years. The exact number was 856,638 with an anticipated additional 40,000 coming up in the months of August and September. This has translated into close to 400,000 auto loans for credit unions, saving these credit union members an average of $750 per vehicle purchase, in addition to the great value from lower rates on credit union loans.

However, due to the improved financial strength of General Motors and the strong demand for its products in the U.S. during our recovering economy, GM has now informed CUSG that the program will be suspended effective October 1st of this year. Of course we are disappointed by this news, but we are not completely surprised. Many within our industry were very happy when we negotiated this contract with GM during the worst economic recession our country has seen since the Great Depression. Within our industry some wondered if the program with GM would last even six months. Instead, working together, the partnership continued for almost seven years with great benefits for GM, the largest automaker in the U.S., for credit unions and their members.
The GM credit union member discount is not coming to an end due to lack of results driven by the credit union industry. Truth is, the program has grown with over 200,000 vehicles sold year-to-date through just seven months of this year. The reality is that GM’s sales are so strong that the cost of these incentives does not provide a good ROI for the company in the current strong sales environment. Additionally, there are rumors that GM may be returning to a position of relying more exclusively on its wholly-owned finance company, GM Financial, for financing vehicles at its dealerships. This is similar to how most larger automakers operate now and how GM had operated previously with GMAC as its captive finance company.

GM has also informed us, that starting September 1, 2015 (for the last month of the program), members will need to verify to the dealer that they have been a member of the credit union for at least 60 days in order to qualify for the CU Member Discount. This is to reduce the likelihood of buyers taking the discount unnecessarily when they are already likely to complete their purchase in a dealership. We wanted you to know this detail relating to September even though it becomes a moot point October 1, 2015.

Despite our obvious disappointment in GM’s decision to suspend the credit union member discount program, on a positive note, GM has expressed an interest in the first quarter of 2016, to engage in discussions with CUSG relating to the possibility of implementing private offers periodically. As always, we will share our progress on those discussions as they evolve.

On behalf of the CU Solutions Group team, I express my appreciation to you and your credit union for your support of this unique program that generated such strong results for credit unions and their members. And while this door closes, others will open as CUSG looks for other partnerships to complement its core Love My Credit Union Rewards programs with Sprint, Intuit (Turbotax) and CU Road Pal (formerly CU Auto Club). We are committed to providing excellent programs for enhancing the value of credit union membership for credit unions.
We apologize for the short notice of the suspension of the GM Discount program. General Motors and other automakers often move quickly and with little notice on these incentive programs.

If you have questions, please don’t hesitate to reach out to our SVP of Sales and Partner Relations, Lisa Rizk at Lisa.Rizk@CUSolutionsGroup.com.

Sincerely,


Dave Adams
CEO, CU Solutions Group

Rooster OG

Not a surprise. I'm glad I got to take advantage of at least the $750 discount, and I'm glad a bunch of people got much better deals through the program. It's all cyclical, when their sales start to slow and they need business, this is a proven program they know they can revisit.

HogwildC7

GM makes a little money now they will go back to being the GM that put them in BK.

jwt1603

This was a great program but as they said in the letter GM is trying to go back to in house financing. From a business perspective that makes sense of course. Just glad I was able to get in on it early this year.

John Ulrich

Thanks GM. It made my decision easy last year!

Casey VP26

Wow!! I just picked up my car on Tuesday and after fighting with the dealer I was able to get the $750 CU discount using a newly opened CU acct.


According to this letter newly opened accounts stops today. 8/31/15.

Red C8 of Jax

WOW, quick notice!!! GM is making the C-7 more expensive, no credit union discount, supplier discount cut several thousand dollars and raising prices the dealers have to pay for the car. Glad I got a 15.

Black 03 Z06

Does not surprise me at all. Some a..hole will ask again why a C5 owners dares to intrude in the C7 Forum.

OldJedi

I have to agree with you completely !! All the stars lined up for us perfectly last year for our 2015 Z51. I do find it interesting that now that GM is doing better and selling more cars, they are abandoning the ways and people that helped get them to this current level. So I assume that when sales start to dip again in the future, and they will, they will re-start this program to help boost sales. It is a shame that they are so focused on the bottom dollar they ignore the people that actually buy their products.

LIE2ME

I'm even happier I bought the 2014 model 16 months ago with the full credit union discount.

2014 Vert, 2LT, auto, performance exhaust, sueded seats, navigation, brand new off the showroom floor for $59.000.00. I'm pretty sure I could not duplicate that today and of course the car is simply magnificent...

Black&White

I'll drink to that!

Vetteman Jack

Too bad that program is ending, but I guess good things can't last forever. Hope GM continues to sell the cars as before.

phileaglesfan

I wouldn't say the economy improved as much as they think it did. Still very fragile.

I was just at the factory and they are working OT to keep up with the demand so this is one way to control demand. I'll be buying in a couple years hopefully, but if prices are higher than what I think it is worth then I will just look at a low mileage used C6 for about $30k less, or maybe even a ZR1 and still save a few $$$.

I already dumped GM otherwise for my daily drivers after around 15 years of owning their cars exclusively.

Maxie2U

I received my CU authorization number and an email from GM just after MacMulkin Chevrolet submitted my order to GM two weeks ago. The car wouldn't be delivered until the end of October.

So I'm not sure how they can just takeaway something they already authorized AFTER I placed my order. Guess I need to get on the phone with MacMulkin Chevrolet and GM Customer Service Team who administors this program.

BTW, the email states "Credit Union Member Program from GM Authorization To Redeem Enclosed".

nmvettec7

Thanks to the OP for posting the letter from the CU. This letter provides total transparentcy from the CU's and what their respective position is.

While we all know hindsight is 20/20, I am sure that many 2015 buyers who were thinking it might be wise to wait and order a 2016 are glad they decided to make their purchases when they did. 2014 C7 owners have to be even happier.

As for myself, I now know I got a super deal with 12.3% of MSRP, which most likely, will never happen again.

The sales at GM have been economy driven. With the world markets entering a slowdown (lead by China's economy) GM in the near future may struggle to meet past sales. While the wheel of any economy turns slowly, this recent downtrend in stock market equity values and slowdown in world economies will have an effect here in the USA. That in the end may slow GM sales. Time will tell, but for now anyone contemplating a new C7 best place their orders very soon, and make sure that any dealer they are dealing with honors at least the small $750 discount thru the CU. It will be quite interesting to see what the automobile markets will be like after this major incentive goes away.

News today that Fiat Chrysler wants to merge with GM already tells a story of future vision for automotive sales.

Let's wait and see how slow the wheel turns for a slowdown in the US economy and what any possible major correction in equity market prices might have an effect on the Americans pocket book and spending. Within the next 2 weeks investors will be receiving brokerage and 401k statements, and see declines in market values. Will they hold back on spending that drives economic activity to a slower pace that eventually effects GM. Time will tell.

Once again thanks for the information in post #1 above. It was quite eye opening.

kevincol

Man, I am so happy I got my C7 when I did (before the dealer invoice price and before the $750 was eliminated)! Maybe by the time it is to get my C8 these deals will be back...

Maxie2U

One thing can be said and that is; GM has certainly turned the screws on the consumer.

List of screw turns;

Reduced power train warranty from 10 years or 100k mile to 5 years or 100,000 miles, whichever comes first.

Reduced Dealer Discount from 10% to 9%

Reduced Supplier Member Discount

Raised Prices in July

Eliminated the CU $750 Discount

Wow!

phileaglesfan

GM needs to be careful with cutting back too much. I already crossed them off my list for daily drivers since they can't build affordable AWD V8 sedans/SUVs any more then have tons of nagging "normal operations" issues. Economy can decrease quickly and it really isn't strong now. The next thing you know 2 seater sports cars become less desirable. Eventually values stabilize no matter how much you paid for the car, just the guy that pays $5-10k more loses a lot more.

BlessedHellride

Yup, those of us with early 2016 orders had good timing!

alamo1974

Got mine just in time.