GM, Credit Unions and Invest in America

This past Monday, GM announced it was back in the black.  The company's $865 million first quarter profit marked its first three month period out of the red since a $891 million profit in the second quarter of 2007.  Additionally, revenue rose 40% in the first quarter of the year and the company announced they are adding more production lines in North America.

This news comes after last month's announcement from GM that they had paid back the $8.1 billion in TARP loans they received from the U.S. and Canadian governments - about 5 years earlier than they anticipated.  While the governments still have partial ownership of GM, paying back the loans before they are due is a good sign that the American auto industry is on its way to reducing government ownership and on the road to recovery.
Want even more good signs?

1. GM is considering a public stock offer at  the end of the year to replace the remaining money they owe taxpayers with money from private investors
2. GM regained its spot as the #1 automotive company in America in March
3. There has been an increase in American car makers' approval rankings.  "An Associated Press-Gfk survey found that 38% of Americans say that U.S.-made vehicles are the best, compared to 33% who preferred autos made by Asian companies,  In a December 2006 AP-AOL poll, 46% said Asians countries made superior cars, while just 29% preferred American vehicles"
4. As a whole, the American auto industry added 45,000 new jobs over the past 9 months - the biggest increase in nearly a decade

This isn't just good news for GM.  Auto suppliers have started to feel the effect as their stocks traded higher in an otherwise flat market.  And, as we've discussed in a prior Love My Credit Union blog, the Big Three ultimately account for up to 3 million U.S. jobs, so a speedy recovery of the American auto industry benefits us all. 


Credit unions can be proud of their part in GM's recovery.  Invest in America provides exclusive discounts on GM and other products and services to credit union members.  To date, over 270,000 vehicles have been sold through Invest in America and over 185,000 of those vehicles have been financed through credit unions.  That's $5.9 BILLION reinvested in the U.S. economy.  Thank you for supporting Invest in America, GM and the American auto industry.