Chrysler gas promo out of fuel
Chrysler's promotion to guarantee buyers $2.99 per gallon gas doesn't really sell when national prices have dropped below that number. Janet Babin reports what the auto maker might plan to do instead to help the company.
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Renita Jablonski: Oil is around $63 a barrel right now. Not too long ago, one of the auto industry's biggest problems was sky-high gasoline. Remember that promotion Chrysler ran? The company promised new car buyers a set price for gas. But with gasoline prices falling fast, that guarantee doesn't look too special anymore. Marketplace's Janet Babin reports from North Carolina Public Radio.
Janet Babin: Chyrsler's gas card guaranteed buyers they'd pay just $2.99 for a gallon for gas. That's a great deal when a gallon is selling for $4.50 Now, not so much.
Kim Korth at auto consulting firm IRN says psychologically, the promotion worked:
Kim Korth: It was attempting to reduce fuel prices as being the reason why no one was buying light trucks. And so from that standpoint, I think it served its purpose.
The lower prices might save Chrysler a few dollars on the promotion. But Peter Delorenzo at AutoExtremeist.com, says, not nearly enough:
Peter DeLorenzo: It might be a little bit advantageous for them, however, whatever little gains they get in this gas deal won't have an effect ultimately on the company's fate.
That fate probably includes a sale to another car company, and/or a cash infusion from the government. But any decision is on hold until after the election.
I'm Janet Babin for Marketplace.
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