May 8,2008 From Auto News
May 8--In a bid to boost sales of its fuel thirsty trucks and SUVS, Chrysler LLC rolled out a new type of incentive late Monday: Chrysler will cap the price of gasoline at $2.99 per gallon for three years on most of its models.
The program is available to buyers starting Wednesday and is scheduled to expire June 2. The offer is based on 12,000 miles of driving per year at the vehicle’s average fuel economy.
Customers enrolled in the program will pay the pump price the day they refuel. Chrysler and its partner on the project, Dallas-based Pricelock, will then split the invoice. Chrysler will be charged the difference above $2.99 per gallon.
"Today we are proud to introduce an unprecedented program to help put customers’ minds at ease and do something to help working people who are worried about the volatility of fuel prices and vehicle cost of ownership," Jim Press, vice-chairman and president, Chrysler LLC said late Monday.
Chrysler said in a statement the program covers only new vehicles, and three fuels: 87 octane gasoline, E-85 and diesel. Buyers can choose the gasoline deal or another incentive, but not both. Consumers who opt for the gasoline deal receive a special credit card about six weeks after taking delivery of their new vehicle.
The card can be used at the majority of filling stations nationwide, but Chrysler did not identify what stations would be excluded. No matter what the price is on the pump, the consumer is charged only $2.99 per gallon.
The sal es incentive will limit how much fuel a consumer can buy at $2.99 per gallon based on the 12,000 mile limit of driving with the Chrysler car or truck purchased. If a vehicle gets 12 mpg, the consumer will be limited to 1,000 gallons per year.
The novel Chrysler incentive offer is introduced at a time when high gas prices have hammered sales of the SUVs and trucks that dominate Chrysler’s line-up.
"This could be a game-changer in terms of how vehicles are sold in the marketplace," Chrysler’s head of North American sales, Steve Landry, told reporters.
Chrysler officials said late Monday that it will begin training its dealers about the program this week.
Editor: Haijing Qu
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