Oh Please: Chrysler Offering $2.99 Gas

Chrysler has recently launched its "Let's Refuel America" campaign in which it claims to offer Americans protection from rising gas prices. Anyone buying a Chrysler (or Dodge or Jeep) thru July 7 will get the deal. Here's how it works: each qualifying buyer will get a 'gas card' that has been linked to their own credit card, but when they gas-up they will only pay $2.99 a gallon with Chrysler charged the difference. You can read more about it here.

This is a really lame-brained scheme. It reminds me of the McCain-Clinton proposal to cut federal gas taxes during the summer-- it's the wrong solution for our economic woes. Yes, we're all hurting from gas prices and we need relief (what are the oil companies offering consumers in terms of help, hmmmm? anyone? hello?). But what Chrysler is offering is an incentive for consumers to ignore gas prices and drive, drive, drive-- thereby producing more green house gases and increasing global warming.

There's got to be a better way for Chrysler to spend this money. It's hard to estimate the potential cost to Chrysler of their offer over the three year period, but it could be huge. Let's say that gas stays at $4 per gallon for the rest of this year and then goes to $4.25/gallon in 2009 (probably too conservative), and then to $4.50/gallon in 2010. The average American drives 12,000 miles per year and gets 25 MPG... so that's over $1800 that Chrysler would have to pay to cover the gas price differential. It would seem to make a lot more sense for Chrysler to just run a promotion that says, "Buy a car now and get $1500 cash back." That would 1) help Americans NOW; 2) likely save Chrysler money over time and 3) not offer an incentive to burn fuel and pollute our atmosphere.

We understand Chrysler is desperate to sell cars-- but they'd probably be doing a whole lot better if they'd developed more fuel-efficient cars years ago. Hey, it's almost quittin' time-- I think I'll jump in my Prius and get 43 MPG on the way home....

Comments

[SolarPowerGuy]

Personally, I'm offended by these "free gas" deals (I think GM ran one, too). And I wonder whether they should be considered illegal.

Consider this: Large automobile companies produce vehicles which, for the most part, can only run on gasoline. This is great if you're in the gasoline business, but it sucks if you're in the business of providing any of the alternatives.

Can an anti-trust case be made? Normally, such cases pertain to two companies in the same business. But there have been rulings which have broken up the vertical integration of big industries, too. Can a case be made that car companies and gasoline companies are engaged in de facto vertical integration?

[clearthinker2008]

I bet the gas is forwarded to the price of the cars.

[ArmchairPatriot]

My take on the $2.99 gas is that Chrysler doesn't make any fuel efficient cars, which is likely why they are doing this gas giveaway.

One of my cars is a PT Cruiser and for a four cylinder the thing is not very fuel efficient. I mean, maybe I'm getting 30 MPG on the highway which is better that a lot of cars but not good enough for a four cylinder with a manual transmission.

I agree with the author of the blog that this only encourages people to drive more instead of changing their driving habits, but maybe the author makes enough money that $4 a gallon gas isn't cutting into her food budget, etc. To a lot of people $2.99 gas sounds like a godsend.

The bullshit of it all is that the government allows the oil companies to rape us in this way. I don't want to hear excuses about not having enough votes, etc. etc. I want to hear that we are seriously investing in cheap alternative fuel sources that we can get on the market quickly that don't involve something as idiotic as cutting into the food supply.

[Quaoar]

The problem is that you would have to buy a Chrysler. I'd much rather buy a car that didn't suck.

[bethinaz]

Last I heard, these $2.99 gas "deals" do have a limit. They are only good for x amount of gallons. And, may I say, I love my 45 mpg motorcycle - economical & fun to drive!

[BBackSoon]

Money had been tight for a couple of years, then we had a few different things happen from a lost job and some nagging yet minor medical problems and guess what, money got even tighter. I needed a reliable car because my old one rusted in half. It was an 88 Nisan pickup that was s#!t brown and had holes from the advanced rust. But it ran like a top and got over 30mpg. So when it came to replacing it with another beater I knew I wanted small and economical. I found a 93 Toyota Tercel. It needed a few minor repairs that I did myself. So including my purchase price and my repairs and tires I am still right around my $1500 budget.

I am currently looking for a bumper sticker that says, “It may be old, but it still gets 37mpg!” Or “I just filled up, can you believe it cost me $40.00?!!!”