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Chrysler Works Green Angle With Cheap Gas
May 20 2008 by Emily Hansen
5/20/08
Pandering Incentives Not What Customers Need
Chrysler has been a bit slower to jump on the eco bandwagon than other American carmakers. Last year it announced it would partner with GM and BMW to bring hybrid versions of its big SUVs to market in 2008; two 2009 models — a Dodge Durango Hybrid and Chrysler Aspen Hybrid — are slated to be available this fall.
Now, though, it’s offering a fuel-savings card with most new vehicles it sells. The program, called “Let’s Refuel America,” locks the price of gas for purchasers at $2.99 per gallon for the next three years. Chrysler will pony up the difference between $2.99 and whatever gas costs, though there is a 12,000-gallon limit.
While this sounds like a decent deal when gas is sure to hit $4 per gallon or more in the near future — and already has in some areas — I was struck by its shortsighted nature. Instead of promoting the fact that it has several models whose EPA-estimated gas mileage is more than 28 mpg on the highway, or that it’s a leader in bringing clean diesel vehicles to market in the U.S., or even that it’s produced E85-capable vehicles since 1998, Chrysler has given us a gimmick. I feel a little pandered to.
Rather than focusing steady marketing efforts on fuel efficiency and alternative fuels, Chrysler has, in my opinion, tried to instantly grab the spotlight with attention-getting cheap gas. I for one would much rather hear the company announce cleaner, more efficient products that consumers could drive for years to come and reap savings on over a longer period of time.
The high price of gas has been the catalyst for consumers to rethink their car-buying choices. Other manufacturers have been more aggressive in promoting alternative products for several years, but instead of promoting the good products it already has, Chrysler seems to be saying, “Don’t feel the pain at the pump! Drive like you’ve always driven; we’ve got your back at $2.99 a gallon.” In the long run, is this really the best solution for anybody?
Chrysler’s fishing for takers on this; are you going to bite?
User Comments
Regardless of our impression of it, it is working for them and getting bodies into the dealerships. Given the very short span of this incentive program (expires June 7), it was obviously a bit of an experiment. I give ‘em a bit of credit for being creative. But I have to say it was kind of baffling because it isn’t much use for the big guzzlers like the Aspen, Grand Cherokee, and Commander as those require midgrade when equipped with the Hemi 8 cylinder. There’s an extra per fill fee and a higher per gallon price that eats away the majority of the benefit even at $4 a gallon. You’d think those would be the models Chrysler would be keen to move. But I guess not.
What Chrysler needs to do is come out with better drive trains that work more efficiently like what Honda accomplishes regularly. Right now they are so bogged down with poorly balanced transmission and engine combos mated to fat, heavy, and boxy body styles that their overall efficiency is embarrassing. Gimmicks like this one just shine a glaring spotlight on the problem.
I give chrysler 5 years to fold
Taking the attention of car enthusiasts through the cheap gas is an effective way I think. But the much more appealing would be the performance handling of the car as well as the prices aren’t that expensive with discount auto parts.
Chrysler may have vehicles with decent mileage but the Japanese competition usually bests them in every segment on that mark.
When we crunched the numbers last month the deal wasn’t so great. When you factor in the reality of $4 gas and that this is uncapped in terms of gallon price the deal could be great, especially on newer models.
I agree, the idea is a gimmick, but after years of seeing huge cash back deals I think buyers are desensitized to those types of sales. This seizes on all that paranoia going on about gas prices. So is it pandering or savvy?