Chrysler has a deal for buyers: $2.99-a-gallon gas cards
— -- As presidential candidates spar over how to roll back gasoline prices, Chrysler on Monday said that it has come up with its own plan to bring back $2.99 gas, which it hopes will spur lagging sales.
Chrysler announced a month-long "Let's Refuel America" program that will give buyers of most of its vehicles a card good for purchases of gasoline or diesel fuel that locks in the price at $2.99 a gallon for three years.
The total amount of fuel that can be bought at the locked-in price will be computed on the basis of the new vehicle's federal miles-per-gallon rating and 12,000 miles of driving a year. The card is good for purchases of 87-octane regular gasoline, E85 gas-ethanol blend or diesel fuel.
The promotion is intended "as 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," said Chrysler President Jim Press.
Gas promos have accompanied many of the price spikes in the past, but Chrysler's deal goes well beyond them in its scope and length.
Detroit's third-largest automaker says its market research found that 76% of consumers surveyed say they are "very concerned" or "extremely concerned" about fuel prices, and 83% say the prices will affect their summer vacation plans.
Chrysler — known for big, powerful engines like its Hemi V-8s — has been hit hard by the gas price run-up. Sales plummeted 23.5% in April compared with April 2007, the worst drop for any of the six largest automakers, according to Autodata.
The gas deal signals that Detroit may be ready to start ramping up incentives after having tried to control inventory by reducing production. Chrysler's fixed fuel price also comes with up to $3,000 in "bonus cash" depending on the model.
That cash rebate could prove just as important as the gas price guarantee for financially strapped buyers, says Bob Cosmai, a consultant who is a former president of Hyundai Motor America.
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