ChaseSS
05-06-2008, 11:19 PM
I think its a pretty smart idea, people won't pay attention if you cut prices by "x" amount but if you say anything about saving money on gas everyone pays attention. Basically they just hedged the gas prices at $2.99 so you won't ever pay over $2.99 for gas for 3 years... sounds good
Chrysler has a deal for buyers: $2.99-a-gallon gas cards
By Chris Woodyard, USA TODAY
As presidential candidates spar over how to roll back gasoline prices, Chrysler on Monday said that it has come up with its own plan to bring back $2.99 gas, which it hopes will spur lagging sales.
Chrysler announced a month-long "Let's Refuel America" program that will give buyers of most of its vehicles a card good for purchases of gasoline or diesel fuel that locks in the price at $2.99 a gallon for three years.
The total amount of fuel that can be bought at the locked-in price will be computed on the basis of the new vehicle's federal miles-per-gallon rating and 12,000 miles of driving a year. The card is good for purchases of 87-octane regular gasoline, E85 gas-ethanol blend or diesel fuel.
The promotion is intended "as an unprecedented program to help put customers' minds at ease and do something to help working people who are worried about the volatility of fuel prices and vehicle cost of ownership," said Chrysler President Jim Press.
Gas promos have accompanied many of the price spikes in the past, but Chrysler's deal goes well beyond them in its scope and length.
Detroit's third-largest automaker says its market research found that 76% of consumers surveyed say they are "very concerned" or "extremely concerned" about fuel prices, and 83% say the prices will affect their summer vacation plans.
Chrysler — known for big, powerful engines like its Hemi V-8s — has been hit hard by the gas price run-up. Sales plummeted 23.5% in April compared with April 2007, the worst drop for any of the six largest automakers, according to Autodata.
The gas deal signals that Detroit may be ready to start ramping up incentives after having tried to control inventory by reducing production. Chrysler's fixed fuel price also comes with up to $3,000 in "bonus cash" depending on the model.
That cash rebate could prove just as important as the gas price guarantee for financially strapped buyers, says Bob Cosmai, a consultant who is a former president of Hyundai Motor America.
The gas deal "sounds good to them. It's a nice little twist, but they still need a heavy discount. I think it will help you closing the deal," Cosmai said.
Chrysler could use the gas as an "X factor" that gains an advantage over other automakers in closing the transaction, he added. He predicts other automakers may feel compelled to launch fuel-oriented promotions of their own.
Chrysler's gas program is good for vehicles bought through June 2 at its 3,511 Jeep, Chrysler and Dodge dealerships in the USA.
It covers a wide variety of models, ranging from compacts such as the Dodge Caliber to large SUVs such as the Jeep Commander.
Excluded are the just-introduced Dodge Challenger, all SRT performance models, the Jeep Wrangler and a few other niche models.
Chrysler has a deal for buyers: $2.99-a-gallon gas cards
By Chris Woodyard, USA TODAY
As presidential candidates spar over how to roll back gasoline prices, Chrysler on Monday said that it has come up with its own plan to bring back $2.99 gas, which it hopes will spur lagging sales.
Chrysler announced a month-long "Let's Refuel America" program that will give buyers of most of its vehicles a card good for purchases of gasoline or diesel fuel that locks in the price at $2.99 a gallon for three years.
The total amount of fuel that can be bought at the locked-in price will be computed on the basis of the new vehicle's federal miles-per-gallon rating and 12,000 miles of driving a year. The card is good for purchases of 87-octane regular gasoline, E85 gas-ethanol blend or diesel fuel.
The promotion is intended "as an unprecedented program to help put customers' minds at ease and do something to help working people who are worried about the volatility of fuel prices and vehicle cost of ownership," said Chrysler President Jim Press.
Gas promos have accompanied many of the price spikes in the past, but Chrysler's deal goes well beyond them in its scope and length.
Detroit's third-largest automaker says its market research found that 76% of consumers surveyed say they are "very concerned" or "extremely concerned" about fuel prices, and 83% say the prices will affect their summer vacation plans.
Chrysler — known for big, powerful engines like its Hemi V-8s — has been hit hard by the gas price run-up. Sales plummeted 23.5% in April compared with April 2007, the worst drop for any of the six largest automakers, according to Autodata.
The gas deal signals that Detroit may be ready to start ramping up incentives after having tried to control inventory by reducing production. Chrysler's fixed fuel price also comes with up to $3,000 in "bonus cash" depending on the model.
That cash rebate could prove just as important as the gas price guarantee for financially strapped buyers, says Bob Cosmai, a consultant who is a former president of Hyundai Motor America.
The gas deal "sounds good to them. It's a nice little twist, but they still need a heavy discount. I think it will help you closing the deal," Cosmai said.
Chrysler could use the gas as an "X factor" that gains an advantage over other automakers in closing the transaction, he added. He predicts other automakers may feel compelled to launch fuel-oriented promotions of their own.
Chrysler's gas program is good for vehicles bought through June 2 at its 3,511 Jeep, Chrysler and Dodge dealerships in the USA.
It covers a wide variety of models, ranging from compacts such as the Dodge Caliber to large SUVs such as the Jeep Commander.
Excluded are the just-introduced Dodge Challenger, all SRT performance models, the Jeep Wrangler and a few other niche models.