GM enhances rewards on credit card

DETROIT -- General Motors has sweetened the deal on its Capital One rewards card, offering the most generous point system since the company began offering the card 21 years ago.

GM said today that the new GM Card from Capital One, available immediately, offers users 5 percent earnings toward the purchase or lease of a new GM vehicle, up to $5,000 in purchases annually. After that, users earn 2 percent on remaining purchases.

There is no point limit on the new card, unlike GM's existing Capital One card, which caps earnings at $500 a year. Also, points don't expire under the new card as they do on the current one.

Points are redeemed toward the purchase of a new vehicle and there is no redemption limit.

The existing GM Card from Capital One has about 4 million users. They will keep their current card but can apply for the new one, a GM spokeswoman said.

The move is the most recent in a series of new GM sales promotions.

This month, it expanded its employee-pricing program to include extended family members and sweetened discounts for members of the military.

Financial terms of the multiyear promotional partnership with Capital One were undisclosed.

In a statement, Bill Cilluffo, executive vice president for card partnerships at Capital One, called it "a new standard" in automotive reward cards.

GM has offered a credit card rewards program since 1992. At the time, the card was issued through a partnership with Household Finance Corp. Household Finance's parent company, Household International Inc., was acquired by HSBC Holdings in 2003.

Capital One Financial Corp. acquired HSBC's U.S. credit card business in 2012.

GM said earnings from the card have been redeemed toward the purchase of nearly 7 million vehicles since its introduction.