Chrysler puts brakes on gas prices

[Trainspotter 0]

Chrysler puts brakes on gas prices

BY OREN YANIV

DAILY NEWS STAFF WRITER

May 23nd 2008

 

Savulich/News

Chrysler is offering a special gas rates with 2008 car sales.

 

With $4 already in the rearview mirror at many area gas stations, a $2.99-a-gallon guarantee for the next three years sure sounds like a sweet deal.

 

One car manufacturer is now banking on it, trying to capitalize on Americans' pain at the pump by promising the lower gas price to buyers of most new Chrysler, Jeep and Dodge models.

 

The promotion worked for Nadine Austin, 49, of the South Bronx, who, instead of replacing her Toyota with a similar vehicle, was enticed into a Manhattan Dodge dealership.

 

"That's why we came," she said. "I thought it is a good deal to encourage the consumer."

 

The "Let's Refuel America" campaign started May 7 and runs through June 2. Some big-engine, gas-guzzling models are excluded, and the offer is limited to 12,000 miles a year.

 

That adds up to about $600 in savings a year, assuming a 20 miles-a-gallon car and $4-a-gallon gas. If prices soar to $4.99 a gallon, annual savings can reach $1,200.

 

"This is one hell of a deal," said an entry on Autoblog.com, "if it doesn't drive Chrysler into bankruptcy, which is a distinct possibility."

 

Chrysler suffered the worst sales this year among the nation's Big Three automakers.

 

A survey at the company's dealerships around the city found that the promotion is making some impact.

 

"We definitely had an increase in customers coming in and asking about it," said Fred Bakalinsky, general sales manager at the Bay Ridge, Brooklyn, showroom.

 

"It differentiates it from other cars," said Justin Roth, 19, who was shopping for a Jeep at the Manhattan location, where the $2.99 offer was displayed on most windshields. "It will definitely be a plus, especially nowadays."

 

Paulette Bryant, 58, of East Harlem, also approved of the offer but was hoping for a better solution to her gas woes.

 

"I think it's nice," she said, "but what they need to do is roll the gas price back down."

[metsfan 2]

Smart move. Let's see if it pays off.

 

- Andy

[TransitGuy 1]

Honestly I think this is a very good move considering that gas prices are only going to go up. Lets be honest theres no way we will see it back to 2 bucks as long as there are oil companies. Besides Chrysler makes some nice vehicles including my favorite, the Dodge Charger.

[metsfan 2]

Honestly I think this is a very good move considering that gas prices are only going to go up. Lets be honest theres no way we will see it back to 2 bucks as long as there are oil companies. Besides Chrysler makes some nice vehicles including my favorite, the Dodge Charger.

 

My favorite has to be the 300 crd they make in europe.

 

- Andy

[MattTrain 3,120]

Chrysler's allowing customers to pay only $3 for gasoline? That's a good idea, but how is this possible? Do the drivers get a tag or something that gives them a pass so gasoline can get gallons for $3 each? I really like the idea, but I don't know how this is going to work, and yeah drivers can sure use relief.

[TransitGuy 1]

Chrysler's allowing customers to pay only $3 for gasoline? That's a good idea, but how is this possible? Do the drivers get a tag or something that gives them a pass so gasoline can get gallons for $3 each? I really like the idea, but I don't know how this is going to work, and yeah drivers can sure use relief.

 

I believe, they give you some sort of card to handle to difference.

[Pablo M 201 35]

This might be the boost Chrysler needs.

[East New York 4,104]

Chrysler's allowing customers to pay only $3 for gasoline? That's a good idea, but how is this possible? Do the drivers get a tag or something that gives them a pass so gasoline can get gallons for $3 each? I really like the idea, but I don't know how this is going to work, and yeah drivers can sure use relief.

 

Ford, GM, and Chrysler hedge gas. This means they buy it in bulk at a discounted price. So they most likely get it for about $2.35 anyway.