Chrysler's $3 gas a cheap idea?
Chrysler wants to boost weak sales by offering a gas incentive: $3 a gallon for three years. But with gas prices only rising, is that a smart move? Rico Gagliano looks into how much money customers would save with the deal.
A Chrysler dealership sign (Tim Boyle / Getty Images)
More on Auto Industry
TEXT OF STORY
Scott Jagow: Here's how bad things have gotten for U.S. car makers: GM sales fell 18 percent in June compared to last year -- and that was considered good news! Chrysler's drop was twice that. So, what does Chrysler do? They are extending that gas price incentive. Now, if you buy a Chrysler you get gas for $3 a gallon for three years. Reporter Rico Gagliano considers Chrysler's logic.
Rico Gagliano: Or, rather, the lack thereof. 'Cause with gas prices rising, isn't Chrysler's offer kind of . . . stupid?
Jessie Toprak of car Web site Edmunds.com says it may be -- for car buyers.
Jessie Toprak: In a lot of the cases, consumers are better off taking a traditional large cash rebate than the gas card.
Here's the math: At current prices, Toprak says Chrysler's deal can save you as much as 3,000 bucks over three years. But on some vehicles, consumers can opt instead for thousands more in rebates. Even a big jump in gas prices might not make up the difference.
Still, critics wonder why Chrysler is selling the promise of cheaper gas instead of building more fuel-efficient cars.
Toprak: As an auto maker, what are you gonna do for a car that is already sitting on dealer's lot? You can't change a product -- you have to figure out a way to get rid of it.
Honda, meanwhile, has less trouble getting rid of their product. They were the only major auto maker to post a sales increase last month. They've got the most fuel-efficient car line-up on the market.
In Los Angeles, I'm Rico Gagliano for Marketplace.
Comments
Comment | Refresh
From SAN FRANCISCO, CA, 07/09/2008
IF CHRYSLER WOULD GET THERE STUFF 2GETHER,PAY PEOPLE FOR THE JOB DONE,QUIT SIDE STEPPING ALL THE PROBLEMS AND FIX THEM THEY WOULDNT BE IN SUCH TROUBLE.BUT NO , THEY HAVE A PROBLEM, KNOW IT AND CONTINUE BUILDING THE SAME WAY FOR YEARS.LOOK AT TOYOTA- THEY BUILD QUALITY PRODUCTS,PAY THEIR EMPLOYEES WAY LESS MONEY,AND NOBODY COMPLAINS ABOUT ANYTHING.CHRYSLER BUILDERS (UAW) AVG OVER $70 PER HR AFTER BENIFITS- TOYOTA- 1/2 THAT. BUT THEY CARE ABOUT THE PRODUCT THEY BUILD AND TAKE THE TIME TO DO IT CORRECTLY.CHRYSLER IS NOW BUILDING A HYBRID ASPEN/DURANGO- WHO THE HECK IS GOING TO BY A MAMOTH SUV LIKE THIS WITH TODAYS GAS PRICES-
HOW ABOUT A HYBRID MINI-VAN ... NOBODY ELSE HAS ONE,CHRYSLER STILL MAKES THE BEST MINI-VAN ON THE ROAD-HOW ABOUT A HYBRID- TALK ABOUT BUILDING SOMETHING PEOPLE WOULD BUY..
NOPE - KEEP THE GAS SUCKING 4.0V6 ENGINE THAT GETS V8 TYPE FUEL ECONOMY..
WHY BUILD A CHRYSLER SEBRING-DODGE STRATUS AND DODGE AVENGER- YOU DONT NEED PRODUCTS LIKE THIS.PICK ONE-THATS IT.
A JEEP COMMANDER,A JEEP CHEROKEE AND
AND JEEP LIBERTY ?? WHY SMALL MEDIUM,
AND LARGE.YOU DONT NEED AN ASPEN AND A DURANGO.PICK ONE.
From Detroit, MI, 07/03/2008
"critics wonder why Chrysler is selling the promise of cheaper gas instead of building more fuel-efficient cars"
Gee, do you think that maybe it's because they have a lot of already built vehicles to sell, and this incentive could be created in a matter of weeks, while developing new vehicles takes years? No one outside the auto business seems to grasp the complexity and lead time required to make such drastic changes -- they talk as if Detroit could be building more efficient vehicles next week if they really wanted to.
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.