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.
Posted by Michelle Krebs at 7:57 AM under Chrysler , Featured | Comments (7) | digg this | Seed Newsvine
This is absolutely insane. The American government already provides subsidies for gasolin whereas European governments, exhibiting global responsibility, use sales taxes to limit polution and CO2-emission. Now the car manufacturers want to provide further incentives to polute. I stand in disbelief and watch our planet deteriorate, while irresponsible people, governments and companies serve their selfinterest.
Posted by: Peter Schliemann | May 07, 2008 at 2:27 AM
So whats this website to sign up for this gas card?
Posted by: Cassie | May 07, 2008 at 4:32 AM
You receive the information for the web site along with other documentation when you buy an eligible Chrysler, Dodge or Jeep vehicle from today through June 2.
Posted by: Michelle Krebs | May 07, 2008 at 5:55 AM
I agree this is somewhat irresponsible, and silly. Americans sure are suckers for any advertising ploy dangled in front of them. Rebates aren't "sexy" enough any more so they have to come up with another shiny object for consumers to grunt and grab at; whereas it is the same thing - a rebate.
Posted by: rascal99 | May 08, 2008 at 11:49 AM
Relax!! The card is only good for 12,000 miles.. that means there is a limit to the usage of this gas card. It just another marketing strategy.. the value amount of this discount is almost the same as a regular rebate. Do the math: $1 less per gallon.. i.e. 20mpg = $600 you can save per year.. 3 yrs = $1800
Posted by: gtr4me | May 09, 2008 at 2:08 PM
Chrysler should start making reliable, modern, gas-saving vehicles, rather than trying to lure customers with this ridiculous offer. Make a quality product, stand by it, and you won't need incentives such as these. For several years in a row, they've been making cars and trucks that guzzle gas, break down regularly, deliver poor ride and poor performance, the interiors are downright awful, the reliability is dismal.
Posted by: rosomax | May 12, 2008 at 9:11 AM
So I got sucked into the Dodge Journey advertising - the price was right and I was ready to buy. I had my heart set on a crossover as my Yukon was eating my paycheck on a regular basis (public transit is NOT an option for me or else I would choose that route in order to save the environment). Unfortunately, I only test drove one crossover - the Journey. Not only am I completely dissatisfied with the quality of the vehicle (it's hard to get an exact idea of a vehicle after driving for 2 hours), but I purchased, and thus missed out on the best thing currently going for this lovely Dodge 2 weeks prior to the start date of the gas incentive deal - 2 WEEKS!!!! Chrysler, Dodge, Jeep must not have had a sales crisis when I purchased on 4/24/08 or else they would have likely offered to backdate the offer being that there was only a 2 week difference. Not only was the representative at Chrysler's "Customer Service" hotline unable to do anything about the fact that I was not eligible to refuel America, but she pretty much hung up on me. I keep trying to comfort myself with the fact that as gas prices stand right now in my area ($3.99) my incentive would be about $600 a year for 3 years and that I can live without the $600. What is so irritating though is that my new purchase (which almost cost as much as it would have cost to pay off my house), is not reaching anywhere near the mileage I was promised, is already making a "clunking" sound, and as of today the sunroof mysteriously won't open. While trying to provide the "Customer Service" representative my VIN number off of the window sticker I also learned that this vehicle was assembled in Mexico - I admit, not something I was interested in knowing when I was shopping, but a let down after the fact. As far as I'm concerned, Dodge can take this incentive and blow it out their non-functioning sunroofs. I vow to either total this vehicle or pay it off ASAP and sell it for all it's worth - which from my week 3 impressions of the Journey will not be much, but trust me my next car will not come from any of the Chrysler lines.
Posted by: boojourney | May 13, 2008 at 6:43 PM