Chrysler Offers to 'Refuel America'

4331 Views 60 Replies 45 Participants Last post by AndrewGS, May 8, 2008

Ming

Discussion Starter · May 6, 2008

Chrysler Offers to 'Refuel America'
May 06, 2008
By Steve Miller
www.brandweek.com

Chrysler is allowing consumers to play the futures game with a promotion that supplies buyers of some new vehicles with a card that lowers fuel costs to $2.99 a gallon for three years.

As part of the promotion, called "Let's refuel America," car buyers can register for the card via a Web site or a toll-free number. Once they receive the card, they'll be able to use it at any eligible gas station to get lower-priced gas by entering a PIN number. The offer, which starts Wednesday, applies to 87 octane unleaded, E85 or diesel fuel only.

In most cases, the fuel-price guarantee replaces rebates and other incentives. "We are proud to introduce 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," Chrysler president Jim Press said in a written statement. "The 'Let's Refuel America' price guarantee puts money in your pocket today, and allows our customers to better manage their fuel expenses."

Chrysler has fared the worst of the Detroit Three automakers, where sales are dropping. Chrysler, with sales down 17.6% through April, per Autodata, Woodcliff Lake, N.J., this year introduced a number of large vehicles like the Dodge Ram pickup, at a time when consumers are embracing smaller cars.

http://www.brandweek.com/bw/news/recent_display.jsp?vnu_content_id=1003799245

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1 - 20 of 61 Posts

t-rex

· #2 · May 6, 2008

(sniff sniff).........

Do I smell the distinct odor of desperation??

Jay_mac332

· #3 · May 6, 2008

t-rex said:
(sniff sniff).........

Do I smell the distinct odor of desperation??

Come on man, give em a break. Even though I am primarily a GM fan, I really do want Chrysler to succeed. I like a lot of their cars and dont want to see them go.

jkennedy293

· #4 · May 6, 2008

I did the math and it works about to be less than $1200 per vehicle if gas stays at $3.50/gal. Obviously that's not going to happen, but will only go up to about $3000 per vehicle if gas goes up to $5/gal.

They have basically spread the rebate out over three years instead of giving it to you all at once.

JSWZ28

· #5 · May 6, 2008

Great idea!! I can't wait to see if anyone else follows. That new Silverado might not be such a far fetched idea anymore....hmmmm....

Rocket 88

· #6 · May 6, 2008

This sounds too complicated to be a good promotion. Who is really going to want to start driving to "participating" gas stations to save 50 cents a gallon? If you care about the money and gas prices, you are probably inclined to buy vehicles more fuel efficient products then what Chrysler offers. Then after three years your stuck with a greatly depreciated gas guzzler with $4.50/gal or something gas prices. Not smart.

Still, I've gotta give Chrysler some kudos for thinking outside the box.

skylark68

· #7 · May 6, 2008

Interesting gimmick. It might be valuable in a year or so once gas hits $5.00+. Maybe not if you can get $5-8000 off a new Ram though. If it's either or, i'd opt for the $8000 off. Many of the dealers around town are offering that much off the Rams.

Sparky85

· #8 · May 6, 2008

I concure with T-rex. Chrystler is making thier last ditch effort to compete with everyone. cause they cant!!!

BGH

· #9 · May 6, 2008

So the card is limited by the number of years? If that's the case you could use it to refill all your cars, lawnmowers, boats. And maybe make some money selling to your neighbors.

Neanderthal

· #10 · May 6, 2008

Clever move.

While rebates are always nice to have, working off the massive free-publicity hysteria of increasing fuel prices is IMO smart marketing.

I can't believe the Mullet Jeanyis Mark Fields didn't think of this first...:think:

Clownzilla

· #11 · May 6, 2008

BGH said:
So the card is limited by the number of years? If that's the case you could use it to refill all your cars, lawnmowers, boats. And maybe make some money selling to your neighbors.

Wow, I didn't think of that. I wonder if they have any way of stopping that?

Neanderthal

· #12 · May 6, 2008 (Edited)

BGH said:
So the card is limited by the number of years? If that's the case you could use it to refill all your cars, lawnmowers, boats. And maybe make some money selling to your neighbors.

Not to mention that Chrysler is probably well aware of the fact that at least 10% of all gift cards are never redeemed, which amounts to billions of easy profits annually for US-American companies.

gardnet1

· #13 · May 6, 2008 (Edited)

Am I doing the math wrong? If gas is $3.50 a gallon so you save $0.50 per gallon and your Ram gets 15mpg combined and you drive a whopping 15,000 miles a year, then ... 15000/15 = 1000 gallons X $0.50 = $500 dollars per year or 3 years or $1500. Not exactly a deal maker for those who can crunch numbers. Even at $4 bucks a gallon your only saving $1000 year/$3000 total.

If you add in the time value of money, it's worth even less.

I don't suppose that this rebate is taxable though.

If gas gets back down below $3.00, "You got nuthin sucka!"

Whitesky

· #14 · May 6, 2008

LAMRONH said:
Clever move.

While rebates are always nice to have, working off the massive free-publicity hysteria of increasing fuel prices is IMO smart marketing.

I can't believe the Mullet Jeanyis Mark Fields didn't think of this first...:think:

Yep, they had free publicity on Fox news, Fox business, CNBC and the local radio station I listen to this morning from them talking about this.

knumknuts

· #15 · May 6, 2008

The card is probably limited to a certain number of gallons of fuel per week.

I recently purchased a new Ram 1500 and got a huge discount, about $10k. I do not think this gas card would have saved me more.

gardnet1

· #16 · May 6, 2008 (Edited)

I bet sierra club and envirowackos will stick another knife in Chryslers back for encouraging fuel consumption and adding incentives for buying trucks/suvs.

Does this card apply to diesels? Now that could save some [email protected] $4 bucks a gallon

johnny smallblock

· #17 · May 6, 2008

gardnet1 said:
If gas gets back down below $3.00, "You got nuthin sucka!"

Don't worry. That will never happen.

This promotion is great because what makes people nuts about gas prices is the volatility and the fact that absolutely no one can say what prices will be...except that they'll be higher. It's a great offer because it gives people piece of mind and it will make them feel smart for driving a Chrysler everytime they fill up. Also, they'll tell all their friends about it, and everyone who hears that Bob is paying a buck less per gallon feels like they should get in on the deal too. I'll tell you, if I were in the market for a new car, that would get me into a Chrysler dealership.

1487

· #18 · May 6, 2008

Rocket 88 said:
This sounds too complicated to be a good promotion. Who is really going to want to start driving to "participating" gas stations to save 50 cents a gallon? If you care about the money and gas prices, you are probably inclined to buy vehicles more fuel efficient products then what Chrysler offers. Then after three years your stuck with a greatly depreciated gas guzzler with $4.50/gal or something gas prices. Not smart.

Still, I've gotta give Chrysler some kudos for thinking outside the box.

there are tons of participating stations. Furthermore, Chrysler makes several vehicles like Caliber, Sebing/Avenger I-4 and Compass that get OK mileage. In my area gas is already $3.60 a gallon so you are saving 60 cents a gallon now with prices sure to head up this summer. Not bad at all. Especially when you consider this wont hurt resale value.

1487

· #19 · May 6, 2008

gardnet1 said:
Am I doing the math wrong? If gas is $3.50 a gallon so you save $0.50 per gallon and your Ram gets 15mpg combined and you drive a whopping 15,000 miles a year, then ... 15000/15 = 1000 gallons X $0.50 = $500 dollars per year or 3 years or $1500. Not exactly a deal maker for those who can crunch numbers. Even at $4 bucks a gallon your only saving $1000 year/$3000 total.

If you add in the time value of money, it's worth even less.

I don't suppose that this rebate is taxable though.

If gas gets back down below $3.00, "You got nuthin sucka!"

First of all a Ram isnt going to average 15mpg. Secondly, has is ALREADY higher than 3.50 a gallon. Its close to $3.70 in some places and its expected to go up as we enter the summer. You can combine this with other offers so its a good deal in my book. It not like you have to buy a vehicle at MSRP to get this.

chickenkicker

· #20 · May 6, 2008

This has been all over every news station (both local and national) and is receiving nothing but praise from the media as far as I have seen. In fact as I'm typing this it's on the news in the background again. They are getting a ton of free advertising value from this.

I think it's a really smart idea. Where I live driving just 10 miles away the cost of gas can be 20cents+ more per gallon then where I live. It will not only help increase the sales of Chrysler's less efficient models but I like the idea of knowing what gas will cost me regardless of where I am when I have to fill up.

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