Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
IWSJI item on GMAC notes CUs market gain
NEW YORK (9/25/09)--A Wall Street Journal article about General Motors Co.'s (GM) former captive finance company, GMAC, notes that credit unions have gained a significant share of the auto loan financing market. Melinda Zabritski, a director with Experian Information Solutions, told the publication that a year ago, credit unions had less than 20% of the auto finance market. Now, "thanks to financial flexibility and a relative lack of exposure to mortgage risk--credit unions have stormed past 30%," she said (The Wall Street Journal Sept. 24). The article was about GMAC using its new access to low-cost capital and the rising prominence of its Ally bank to compete more directly with banks such as Wachovia Corp. and J.P. Morgan Chase. GMAC turned itself into a bank holding company after it the federal government rescued and separated it from GM. GMAC plans to begin offering new auto-related financial programs to card dealers called the Ally Dealer Rewards program, GMAC President Bill Muir told the Journal, to help blunt the gains major banks have made into auto financing. This year Chase and Wachovia became the top providers of loans for new and used vehicles, according to Experian. Chase has 6.7% of the auto loan market, and Wachovia has 4% share, while GMAC has 3% market share. Muir said GMAC is shifting from a culture of relying heavily on making GM happy to a culture that is aggressively looking to steal market share from banks, credit unions and captive lenders of other auto makers.
Other Resources

RSS





print
News Now LiveWire
Final field-of-membership rule tops April 30 NCUA agenda http://t.co/gFIhRhUCts
1 day ago
.@CUNA's @Nussle speaks to @VonnieQuinn about #StoptheDataBreaches and reg. relief. http://t.co/TMTubG9Afk
1 day ago
RT @NCUFoundation: .The Foundation's @hylandhighway with @NatlJumpStart President/CEO Laura Levine at #FLHillDay2015 today: http://t.co/ep5…
1 day ago
Seriously underwater homes rise, new-home sales tumble News Now: http://t.co/2LzWTkqnES
1 day ago
#NewsNow Cornerstone Foundation awards $71K in grants http://t.co/Y6D8K9rwWv
1 day ago