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Price of fuel locked in at $2.99 a gallon for 3 years — rivals won’t match it

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How bizarre; instead of doing something to reduce their corporate CAFE average, they are going to subsidize the purchase of big trucks and cars for three years. Does nothing to conserve gas and will probably put more of these gas guzzlers on the highway. When the new owners wake up three years from now to $6 or $7 a gallon gas, won't they be surprised? Talk about kicking the can down the road! :)
 

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It's an understandable strategy from Chrysler. At least it buys them some time to work on their product line and bring it more in line with rapidly changing consumer demand. Plus, unless the price of gas continues to skyrocket, it is a pretty cheap incentive. At $4 per gallon and 21 MPG it only costs them about $1800 on a PT Cruiser.
 

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If anything like their Drive Train warranty, it is good only for the original buyer and they know most of us trade or sell our vehicles within three years of purchase. I haven't seen the entire presentation so I'll guess there is a milage or gallon limit per year. Another buy me gimik but they will get some takers who want to drive the Hemi.
 

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It's an understandable strategy from Chrysler. At least it buys them some time to work on their product line and bring it more in line with rapidly changing consumer demand. Plus, unless the price of gas continues to skyrocket, it is a pretty cheap incentive. At $4 per gallon and 21 MPG it only costs them about $1800 on a PT Cruiser.
A lot less than that. They'll make a deal with one of the oil companies for an exclusive deal, and I guarantee that it will cost more than half that estimate.
 

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A lot less than that. They'll make a deal with one of the oil companies for an exclusive deal, and I guarantee that it will cost more than half that estimate.
doubtful there is any 'deal' with an oil company. this is effective TOMORROW, May 7th, so unless they announce something tonight saying you have to use one particular brand of fuel (which i see no way of working for the entire US), you use what and who you want.

of course it's based on only 12K/yr and the average MPG of the vehicle you purchase. yes, HEMI owners will benefit more from this than others, but then they are spending more too.

i'll just keep my Jeep Compass.....thank you very much, while waiting for MY 'ship to come in' with my smart!
 

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If you can afford it... buy it! That's my motto.

I bought the smart car because it is goofy looking. It was not a wise purchase (investment) for me. It would have been more prudent to buy a used small car with decent mpg and lower insurance cost. Plus I only live 3 miles from work (Chrysler HQ). If I was concerned about the cost of fuel I would be walking or cycling to work.

I am against CAFE. They should just tax gas more, a lot more, and all gas. Let the market sort it out.

Toyota talks about their high mpg's then why do they make the Toyota Tundra Pick Up Truck? Doesn't that lower their CAFE?
 

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Price of fuel locked in at $2.99 a gallon for 3 years — rivals won’t match it

Full story here

How bizarre; instead of doing something to reduce their corporate CAFE average, they are going to subsidize the purchase of big trucks and cars for three years. Does nothing to conserve gas and will probably put more of these gas guzzlers on the highway. When the new owners wake up three years from now to $6 or $7 a gallon gas, won't they be surprised? Talk about kicking the can down the road! :)
Didn't Daimler and Chrysler spilt? I read an article somewhere. Sounds like Chrysler is already screwing up... Glad the smart is under the Daimler name. I never have liked Chrysler or Dodge, just a gut feeling...
 

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Didn't Daimler and Chrysler spilt? I read an article somewhere. Sounds like Chrysler is already screwing up... Glad the smart is under the Daimler name. I never have liked Chrysler or Dodge, just a gut feeling...
Yes, they did. Chrysler now owned by an investment group. Not sure what their qualifications are after this stunt. :)
 

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If you can afford it... buy it! That's my motto.

I bought the smart car because it is goofy looking. It was not a wise purchase (investment) for me. It would have been more prudent to buy a used small car with decent mpg and lower insurance cost. Plus I only live 3 miles from work (Chrysler HQ). If I was concerned about the cost of fuel I would be walking or cycling to work.

I am against CAFE. They should just tax gas more, a lot more, and all gas. Let the market sort it out.

Toyota talks about their high mpg's then why do they make the Toyota Tundra Pick Up Truck? Doesn't that lower their CAFE?
Sorry Bob, I just noted who you work for, opps, after the fact. I'm sorry. There is just something about the product I don't like, maybe they seemingly higher than average MPG in most of the Chrysler cars... Not sure. Then there is the problems I had with my Neon years ago... I got taken for a ride on that one... Has left a sour taste in my mouth... Not to mention it is normally Chrysler products that are trying to run me over on the interstate, 9 of of 10... I used to really like the LHS styling, but went with a Caddy instead...
 

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Don't worry about it. A direction we almost took under the "equal partnership" of Diamler was "no cars... only SUV's & mini vans". They thought it was more profitable but some people put up a fight. Just think where Chrysler would be if that went there.

And since Daimler was our partner, I don't think Chrysler was going to come out with a small car when Daimler was bringing over the smart. We would be competing against ourself. Just watch for the Hornet :) my next car.

CAFE is misleading, thats my problem with it. Corpoarate Average Fuel Economy it should be EACH vehicle. Not sell 5 Camrys to every Tundra to meet CAFE.
 

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Yes, they did. Chrysler now owned by an investment group. Not sure what their qualifications are after this stunt. :)
I think they are demonstrating just how smart they are. People will perceive this to be a better deal than an upfront rebate, and will buy more Chryslers as a result. Chrysler ends up spending less to move each car and they don't have to put up all the money upfront either.

I think it is pretty shrewd marketing and plays into peoples fears of high gas prices. I don't like their products, but I do respect this as a marketing move.
 

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CAFE is misleading, thats my problem with it. Corpoarate Average Fuel Economy it should be EACH vehicle. Not sell 5 Camrys to every Tundra to meet CAFE.
Car and truck fleets are completely separate for CAFE purposes, and each has to meet a government standard. It does result in some interesting moves by manufacturers in order to meet the standards. The Subaru Outback was redesigned for 2005 and had the ride height increased by 1 inch in order to be classified as an SUV for CAFE purposes which helped offset the impact of the larger Tribeca.
 

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Good marketing

I think they are demonstrating just how smart they are. People will perceive this to be a better deal than an upfront rebate, and will buy more Chryslers as a result. Chrysler ends up spending less to move each car and they don't have to put up all the money upfront either.

I think it is pretty shrewd marketing and plays into peoples fears of high gas prices. I don't like their products, but I do respect this as a marketing move.

Definitely good marketing. Chrysler has a reputation for lagging in fuel economy. Dodge has a rep for having huge trucks. Instead of pushing out untested fuel saving technology or caving in and using a rival's engine, they're doing this to save their butts. I notice there's a three year limit on the deal, so they can simply consider this a marketing 'cost of sales' expense for that timeframe, while they spend billions on better designs. It's either that or lose billions in sales on trucks they've already produced; the psychological barrier of $4.50 gas ("almost 5 bucks a gallon") is really close... once we pass that, everyone will want a car that gets 50mpg or more. I've had Dodge owners ask me what mileage my Smart gets, and they seemed to genuinely think about how much they love their trucks.

For Chrysler's immediate future, it's easier to just subsidize the gas at a few billion $$ instead of also having thousands of trucks that nobody wants. Of course, that says nothing about what happens in three years. They'd better have a wicked good plan in the works.
 

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Wow. So, it's all about the marketing? Never mind the smoke and mirrors used to suck people into buying more gas hogs by subsidizing their gas costs. Deja vu (the 80s) all over again, I guess. :(

And, oh by the way, they don't have a wicked good plan in the works.
 

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Wow. So, it's all about the marketing? Never mind the smoke and mirrors used to suck people into buying more gas hogs by subsidizing their gas costs. Deja vu (the 80s) all over again, I guess. :(

And, oh by the way, they don't have a wicked good plan in the works.
I'm not saying it is all about the marketing, but Cerberus has only been in control for a few months so they have to do what they can to keep the current product moving and keep the company alive while they retool the line up. They have already said that they will have Hybrid drivetrains available in every model they produce, so I think they are moving in the right direction. they are also moving to quickly drop underperforming vehicles and eliminate badge engineered models so they seem to be doing the right things to succeed in the long run.
 

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It buys Chrysler time, and gives them a way to get rid of all the remaining inventory of the duplicate models they are going to ax. By the time they get done, it'll be Chrysler for cars, Dodge for trucks, and Jeep for 4WD. Wait and see.
 

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Discussion Starter #17 (Edited)
2009 Dodge Aspen Hybrid, 40% increase in city fuel economy: from 14 mpg to a whopping 19 mpg! Great if you don't mind using twice as much gas as something like a Malibu hybrid*. This makes as much sense as getting a rebate on the 20 mpg Tahoe hybrid because of its technology while the 41 mpg smart gets zero rebate. I ain't buying it; it's not like this energy crunch started at noon yesterday - everybody (except in Detroit, apparently) has seen it coming for years. I agree, the market will sort it out and with any luck these dinosaurs will be extinct in a few years.

* Correction: Malibu hybrid is rated 24 city/32 highway, so the Aspen hybrid only falls 5 mpg short in city driving.
 

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Didn't Daimler and Chrysler spilt?
Daimler still owns 20% of Chrysler.

I'm not saying it is all about the marketing, but Cerberus has only been in control for a few months so they have to do what they can to keep the current product moving and keep the company alive while they retool the line up. They have already said that they will have Hybrid drivetrains available in every model they produce, so I think they are moving in the right direction. they are also moving to quickly drop underperforming vehicles and eliminate badge engineered models so they seem to be doing the right things to succeed in the long run.
Chrysler doesn't really have any badge engineered vehicles, that's the domain of GM.

The Refuel America program is all about marketing; instead of giving cash rebates, they're offering gas rebates. You can only get a certain amount of gas (you get an allotment), not all vehicles are eligible, and they only offer the $2.99 on 87 octane fuel (it's .15 more to use mid-grade) ... which doesn't do those of us who are supposed to be using premium in their Hemis much good.

Your pal,
Meat.
 

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Chrysler doesn't really have any badge engineered vehicles, that's the domain of GM.
They have a few:

Dodge Nitro = Jeep Liberty
Chrysler Aspen = Dodge Durango
Dodge Avenger = Chrysler Sebring
Chrysler Town & Country = Dodge Caravan

Also the Jeep Compass and Patriot are both reskinned Dodge Caliber's.

They are as bad as GM used to be with all it's variations on the J and A car platforms, but they do have plenty of duplication.
 

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They have a few:

Dodge Nitro = Jeep Liberty
Chrysler Aspen = Dodge Durango
Dodge Avenger = Chrysler Sebring
Chrysler Town & Country = Dodge Caravan
The Jeep Liberty and Dodge Nitro share a platform, they're not rebadged; the Nitro doesn't offer the 4WD systems available on the Liberty, nor has it been trail rated, nor does it offer the options (such as the Sky Slider roof).

Chrysler is the luxury division, while Dodge is the performance division; The Aspen, Durango, Avenger and Sebring aren't "rebadges," they all offer different option packages, not just a different badge or facia design.

Also the Jeep Compass and Patriot are both reskinned Dodge Caliber's.
The Dodge Caliber, Jeep Compass and Patriot all share a platform, but they're not "reskinned" by any stretch. The Caliber is the performance oriented (Dodge) platform, the Patriot is the 4x4 oriented platform (it has a Trail Rated option), and the Compass is the ugly cousin that can't decide what it is.

They are as bad as GM used to be with all it's variations on the J and A car platforms, but they do have plenty of duplication.
I can understand your confusion as to what, exactly, badge engineering is, but in this particular case, you're wrong; Chrysler, Jeep and Dodge are very specific about the types of vehicle they offer. Especially after the Daimler sale, and certainly after Plymouth went away.

Badge engineering examples are vehicles like the Pontiac GTO/Holden or the Ford Escape/Mazda Tribute.

Vehicles like the Jeep Patriot and Dodge Caliber aren't badge engineered, they simply share the same platform. That'd be like saying that the Chrysler Crossfire and Mercedes SLK are badge engineered, or that the Buell is just a rebadged Harley Davidson Sportster ... and they are clearly not.

Your pal,
Meat.
 
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