Chrysler offers gas for 2.99 a gallon for 3 years

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http://autos.yahoo.com/article....2FyZA--

Remember when the prospect of $3.00-gallon gasoline was supposed to cue the death knell for the domestic auto industry? Now the prospect of keeping $3.00 as a ceiling price is being used by Chrysler as in incentive to sell its cars.



Chrysler is hoping to jumpstart its faltering sales by guaranteeing customers they won't have to pay more than $2.99 per gallon for most of the gas they use in their new Dodge, Chrysler, or Jeep for the next three years in an innovative new program that starts May 7 and runs through June 2.



"We want to give our customers peace of mind,"￾ said Chrysler vice chairman Jim Press as he rolled out the new program during a conference call with reporters. "One of the things that is weighing on the minds of customers is the volatility of the price of gasoline."￾



With gasoline averaging more than $3.50 per gallon across the U.S. and touching $4 per gallon on the West Coast, the $2.99-per-gallon guarantee "takes some of the sting out of higher fuel prices,"￾ Press said. The rising price of fuel also has helped spur the sales of small cars, which have been the weakest part of American companies' model lines. Chrysler sales have dropped by more than 17 percent through the first four months of 2008 and its sales of trucks and SUVs have declined by nearly 27 percent.



Under the new gas-guarantee incentive plan, officially dubbed "Let's Refuel America,"￾ Chrysler will pay the difference between $2.99 and a higher pump price, Press said"â€￾if the price dips below $2.99, there is no need to use the gas card.



Gas Card Linked to Credit Card
Here's how it will work: The new-car buyer who chooses to take the gas offer instead of a straight cash rebate will register for a special gas card that is linked to their own Visa or MasterCard. They then pay at the pump and swipe their card. The total cost of the fill-up (it can be up to 87 octane regular unleaded gasoline, E85, or diesel) is sent to a third party that splits up the bill: $2.99 a gallon is charged to the customer, the additional 66 cents ($3.65 per gallon currently prevails in many large U.S. cities) is charged back to Chrysler, explains Steve Landry, Chrysler executive vice president of North American sales.



There are some provisos: mid-grade or premium unleaded costs the consumer 15 cents and 30 cents more, respectively; grades higher than 94 octane are not covered; and you cannot use a gasoline card for diesel and vice versa.



The program is limited to 12,000 miles of driving annually based on the EPA combined city and highway fuel economy rating (lead foots may find they don't get a full 12,000 miles in real-world driving) on the Chrysler vehicle purchased under the program, Landry said.. Thus, if the vehicle gets 28 miles per gallon, the customer will be able to purchase 428.5 gallons of gasoline at the program price, Chrysler said. Another unique wrinkle is that once the card is in the customer's hands, it can be used by other family members and to fill-up other vehicles.



Press said teams of Chrysler experts and outside consultants spent more than seven weeks evaluating the program. He said he does not know how much it ultimately will cost the automaker, given the inability to predict future gas prices, but the company is using a hedging strategy to help minimize the impact on the company's finances. In an industry where no good idea goes unmatched, other carmakers will be watching the program closely as everyone grapples with the negative effect of fuel costs on sales.



Chrysler isn't the first to give away gasoline. Over the years, carmakers have given away gas cards loaded with anywhere from $50 to $500 worth of fuel as an incentive to purchase. The Chrysler program, however, is unique because of its scope covering nearly every product in the company line. Only the performance SRT vehicles, the Dodge Viper, Dodge Challenger, Jeep Wrangler, and commercial vehicles such as the Dodge Sprinter are excluded from the program, Press explained, as they are known to be thirsty vehicles. The program is directed at volume vehicles designed to be more fuel-efficient.



On certain models, such as the Dodge Ram 1500, customers who opt for the gas card will also qualify for a small cash rebate, according to Landry. Buyers can choose from the current $5500 rebate or a gas card and $3000 cash back.
 
It's a neat idea, but I would probably take the full cash rebate. Even at $4/gal and 15miles/gal we would save about $800/yr provided we use the full 12000miles for the 3 years. It's really close tho...
 
I am disillusioned with everything in life at the moment lol.


Thought on the current subject? if Chrysler really wanted to help and increase sales they would have started building fuel efficient cars years ago.

These company's and their cars can burn in the fiery pits of he11 as far as I am concerned


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Correct me if I am wrong...but arent the hottest selling Dodges/Chrylers/Jeeps the least fuel efficient in their classes?
 
I love the irony in the fact that the program is called "Let's Refuel America."
 
so...my 1500 RAM w/HEMI sez to use 89 octane... they are going to penalize me for using what they themselves state?
hmmm
why should one engine be penalized compared to another, since we paid a premium already to get the "better" motor?
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Read the fine print! Like in my area tires for life for free. Sounds good but all your routine maintenance, oil changes etc have to be done at the dealer, this costs much more that free tires. The gas deal sounds good just read the fine print.
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