Chrysler Unveils New Gas-Price Guarantee Incentive: "Let’s Refuel America"
May 06, 2008

By Michelle Krebs

DETROIT -- Chrysler announced Monday evening that it will launch a new incentive program, called “Let’s Refuel America,” that guarantees buyers of most of its vehicles can lock into $2.99 a gallon gasoline for the next three years. The program starts Wednesday and runs through June 2.

It comes as no surprise that Chrysler is offering a gas-related incentive: Chrysler’s sales were the worst of any automaker in April date. And even the current hefty cash incentives seem to be doing little to move the metal. Edmunds.com had predicted gas prices would be the next front for automaker incentives, as it has become in the presidential campaign.

It’ll also be no surprise that, as all politicians are getting into the act, other automakers surely will jump on this bandwagon.

“Much like GM’s Employee Pricing program spared like wildfire in the summer of 2005, it’s likely other manufacturers will follow Chrysler’s lead,” said Jessica Caldwell, manager of Edmunds.com’s pricing and industry analysis.

Peace of Mind

“Gas prices are having a profound effect on the psychology of car buyers, so we expected that automaker and dealer marketing tactics may include free gasoline programs this summer,” Jesse Toprak, executive director of Industry Analysis for Edmunds.com said last week.

It is the psyche of the potential car buyer Chrysler is aiming at with this incentive. “Our customer feedback shows that the price of gas and the volatility of fuel prices weigh heavily on the customers mind,” Jim Press, Chrysler vice chairman in charge of sales and marketing, said in a conference call with reporters Monday evening. “They don’t know what the price will be in the future and it keeps changing.”

Indeed, the price for a barrel of oil, setting records with every new day, slipped over the $120 mark Monday and are at more than $3.50 a gallon across the country.

Press said “Let’s Refuel America” is designed to give the customer peace of mind that they know how much they will pay for gas for the next three years.

How It Works

When a customer purchases almost any new Chrysler, Jeep or Dodge vehicle (with some exceptions) he or she can select the "Let's Fuel America" program instead of other available incentives. On some vehicles, a combination of the gas program and cash rebates apply.

The customer registers on a web site or via a toll-free phone number to receive a gas card, received within four to six weeks of application. At the gas station, the customer swipes the card at the pump, selects whatever fuel -- premium, regular, E85 or diesel -- enters their Personal Identification Number and fills up. The fuel card is tied into the customer's regular credit card, but the card is charged only $2.99 per gallon on the card instead of the full amount showing on the pump. Chrysler subsidizes the difference. The card is good for 12,000 miles a year of gas for three years, even if the customer sells the Chrysler vehicle.

What Vehicles

Vehicles eligible for Let's Refuel America are: Dodge Caliber, Avenger, Charger, Magnum, Journey, Grand Caravan, Durango, Nitro, Dakota, Ram and Ram HD; Chrysler PT Cruiser, PT Cruiser Convertible, Sebring, Sebring Convertible, 300, Town & Country and Aspen; and Jeep Patriot, Compass, Liberty, Grand Cherokee and Commander.

Some of the vehicles offer cash rebates instead of the fuel program or a combination of a rebate and the fuel program. For instance, the Dodge Caliber has a $750 cash rebate OR the $2.99 a gallon gas program with no incentive. But the Dodge Ram 1500 has a $2,000 cash rebate or the $2.99 a gallon gas program plus a $500 cash rebate that can be used toward the down payment.

Not eligible for the fuel program are: all SRT models; Dodge Viper, Challenger, Sprinter and Ram Chassis Cab; Chrysler Crossfire; and Jeep Wrangler.

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