Talk Back Tuesday: Chrysler refools-ur, refuels America
"Gas prices are skyrocketing! There's no end in sight!! Who knows how high they'll go?!!!"
The above statements may or may not be true, but Chrysler is hoping enough of you feel this way to fall for their latest marketing scheme: Let's Refuel America!
The Edmunds data department confirmed last week that, for the most part, this "deal" isn't all it's cracked up to be (surprise!). But here's a story that pulls all the important numbers together and, in simple terms, says to avoid the "Let's Refuel America!" boondoggle and just take the good, old reliable incentive cash. You'll come out much better.
Unless, of course, gas really does skyrocket in the next three years, at which point Let's Refuel America could be a good deal. According to the numbers-crunchers, gas has to hit at least $4-a-gallon to break even with the current cash incentives, and it must go higher to transform the gimmick into a good deal.
Which brings us to the question, actually the questions, for today's Talk Back Tuesday:
Does Let's Refuel America strike you as a good deal? Do you think it will work to sell the company's product? And, more importantly, will Chrysler exist in three years to actually fulfill its part of this deal?
Me? I'd rather take the cash today than bet on higher gas prices (and Chrysler's long-term solvency) tomorrow.
BTW, there have been periods in the not-so-distance past where the price of gas has actually gone down. Can you imagine being the genius who signed up for the screaming deal of $2.99 a gallon in 2010...when the price is $2.34 a gallon?
It could happen.
- Posted by
- Karl Brauer May 13, 2008, 6:00 AM
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- Chrysler, Talk Back Tuesday





Creative gimmick is what came to mind when I saw it on Straightline last week. When I heard a radio spot for it over the weekend with tons of conditions and disclaimers......it further cemented the gimmick thought. No matter what the car companies and dealers say......there are no free lunches - ever.
RE: Chrysler going belly up in the interim - aren't these programs usually run through or by someone else that would continue to make good even if Chrysler were gone?
while, i see the gimick, you have to weigh the risk/reward.
as likely as gas is to hit 2.34 like karl suggested, it could easily hit 6-7 dollars a gallon.
And way to misreprest the wall street journal, which is a very balanced piece, and itself states that unless gas averages about 4.10 a gallon for the next 3 years your better off with the rebate.
so the debate should be weather or not gas will be >4.10 a gallon for the next 3 years. I doubt the energy/oil prices will crash over the next 3 years to cut gas prices to 2.23 (which would probably take ~$40/barrel oil, or a crash in price of about 66% from today).
With india and china growing at a fast rate, car companies like tata putting thosands/tens of thosands of NEW drivers on the road.
Arab oil fields maturing, and the current mexican fields might be too. There might not be real growth in oil supply for the next 5+ years.
New tensions in venezula with hugo funding actions against our 'ally' in columbia. Tensions increasing in Iran, and even though no one wants to talk about it, Russia is growing towards instability faster then its growing towards stability.
I dont see a rosy picture for oil prices...
And yes, you could argue, that the dollar will stabilze, and maybe even rise, causing a huge pull back in prices of oil, energy, metal's, etc...
I just dont see how in the long term, that will result in much lower gas prices... The increase in cost might slow down/stop,
In the end, the break even point of 4.10 is interesting, its close enough to happen, but just far away enough, that you might lose money.
Just dont forget, depending on whos in power next year, the tax on gas might increase, and locally you might have high gas taxes as well. I dont see those going down at all.
I'll also add this:
there has been a recent disconnect between oil prices and gas prices.
in may/june of last year, the oil price was ~$75/barrel,
and the average gas price was ~$3.25/gallon.
This year, we are seeing ~$123/barrel oil
and the average gas price is ~$3.85/gallon.
So in one year, gas prices increaed ~19%.
And oil prices increased ...~64%.
If we get a gas price correction, and a linear relationship between Oil and gas prices...
Gas should be costing us... 5.33 a gallon on average.
We Americans sure are suckers for any advertising ploy dangled in front of us. Rebates aren't "sexy" enough any more so Chrysler has to come up with another shiny object for consumers to grunt and grab at; whereas it is the same thing - a rebate!!!
Chrysler is apparently content to be a bottom feeder. Fine, but frankly this "program" should be an insult to the average persons intelligence. Then again, this may work (see paragraph above).
whether or not the deal makes sense depends on the cost of the rebates available on a particular vehicle. On a Journey it probably makes sense because incentives are likely non existant. What keeps being ignored is that you have to forego CORPORATE incentives but not dealer incentives for this deal. If your local dealer is taking $2000 off your favorite Chrysler product you can still take that discount and use the gas program. On a Dodge Ram or some other vehicle with $4000 cash back available this deal may not make sense.
An incentive to clean their dealer car lots. Nothing is free when you deal with car dealers.
Wow, if this had been Toyota's program, it would have been heralded as 'Toyota is trying to save the planet and ease wallet pain at the pump, what a genius idea!'.
The difference is I expected something like this from Chrysler. It's just how they roll in the marketplace. Que John Cougar Mellencamp and babies waving flags. Oops, I think that's GM.
It would have been out of Toyota's character though. I don't think they need to rely on gimicks.
It sounds like a desperate ploy to prop up Chrysler's flagging sales. They positioned themselves incorrectly for the current market, emphasizing power instead of economy and continuing to rely on aging truck models for profits.
Also, don't underestimate the social factors. In many market regions, being small and economical is hip, while being big and inefficient is the automotive equivalent of wearing plaid pants. I for one have never read a news report of eco-vandals setting Hondas or Toyotas on fire in the middle of the night.
Call me a pessimist, but I don't see fuel prices going anywhere but up in the long term, and that colors all my car-buying decisions.
Isn't gas already above $4.10 in several parts of the country? I agree with the sentiment that it isn't likely to come down in price, and more likely to go even higher. As high as it is, we still pay far less for gas than many other parts of the world which indicates to me that gas prices can still go a lot higher.
If (and this is a HUGE if) I was already strongly considering a Chrysler product, I could see this deal swaying me to the Chrysler. But buying the wrong car/truck, with what is likely to be terrible resale value after 3 years when the $2.99 gas deal runs out, doesn't sound like a smart move.
^we just hit 4.05 in wisconsin. so right on the bubble of where this starts making sense.
for a chrysler these days, might be a good idea to try to get a nice deal on a lease, for 3 years or less, use the promo, get rid of the ride.
and while rebates are now missing. these guys might be so desprate to get some cars of their lot, it might be easy to get a deal without the rebate.
>mopar424 - May 13, 2008 9:29 am (#7 Total: 11)
>Wow, if this had been Toyota's program, it would have been heralded as 'Toyota is trying to save the planet and ease wallet pain at the pump, what a genius idea!'.
Chrysler doing NOTHING close to save the planet. Cheap gas for thirsty SUV's is something close to killing the planet.
On the topic:
I think Chrysler has one of the worst CAFE out of all automakers. Since people feel it at the pump, that's the only way to attract customers...
"rick8365 - May 13, 2008 6:10 am (#1 Total: 11)
Creative gimmick is what came to mind when I saw it on Straightline last week. When I heard a radio spot for it over the weekend with tons of conditions and disclaimers......it further cemented the gimmick thought. No matter what the car companies and dealers say......there are no free lunches - ever.
RE: Chrysler going belly up in the interim - aren't these programs usually run through or by someone else that would continue to make good even if Chrysler were gone?
opfreak - May 13, 2008 6:30 am (#2 Total: 11)
while, i see the gimick, you have to weigh the risk/reward.
as likely as gas is to hit 2.34 like karl suggested, it could easily hit 6-7 dollars a gallon.
And way to misreprest the wall street journal, which is a very balanced piece, and itself states that unless gas averages about 4.10 a gallon for the next 3 years your better off with the rebate.
so the debate should be weather or not gas will be >4.10 a gallon for the next 3 years. I doubt the energy/oil prices will crash over the next 3 years to cut gas prices to 2.23 (which would probably take ~$40/barrel oil, or a crash in price of about 66% from today).
With india and china growing at a fast rate, car companies like tata putting thosands/tens of thosands of NEW drivers on the road.
Arab oil fields maturing, and the current mexican fields might be too. There might not be real growth in oil supply for the next 5+ years.
New tensions in venezula with hugo funding actions against our 'ally' in columbia. Tensions increasing in Iran, and even though no one wants to talk about it, Russia is growing towards instability faster then its growing towards stability.
I dont see a rosy picture for oil prices...
And yes, you could argue, that the dollar will stabilze, and maybe even rise, causing a huge pull back in prices of oil, energy, metal's, etc...
I just dont see how in the long term, that will result in much lower gas prices... The increase in cost might slow down/stop,
In the end, the break even point of 4.10 is interesting, its close enough to happen, but just far away enough, that you might lose money.
Just dont forget, depending on whos in power next year, the tax on gas might increase, and locally you might have high gas taxes as well. I dont see those going down at all.
opfreak - May 13, 2008 6:44 am (#3 Total: 11)
I'll also add this:
there has been a recent disconnect between oil prices and gas prices.
in may/june of last year, the oil price was ~$75/barrel,
and the average gas price was ~$3.25/gallon.
This year, we are seeing ~$123/barrel oil
and the average gas price is ~$3.85/gallon.
So in one year, gas prices increaed ~19%.
And oil prices increased ...~64%.
If we get a gas price correction, and a linear relationship between Oil and gas prices...
Gas should be costing us... 5.33 a gallon on average.
rascal99 - May 13, 2008 7:59 am (#4 Total: 11)
We Americans sure are suckers for any advertising ploy dangled in front of us. Rebates aren't "sexy" enough any more so Chrysler has to come up with another shiny object for consumers to grunt and grab at; whereas it is the same thing - a rebate!!!
Chrysler is apparently content to be a bottom feeder. Fine, but frankly this "program" should be an insult to the average persons intelligence. Then again, this may work (see paragraph above).
1487 - May 13, 2008 8:44 am (#5 Total: 11)
Philadelphia PA United States of America
whether or not the deal makes sense depends on the cost of the rebates available on a particular vehicle. On a Journey it probably makes sense because incentives are likely non existant. What keeps being ignored is that you have to forego CORPORATE incentives but not dealer incentives for this deal. If your local dealer is taking $2000 off your favorite Chrysler product you can still take that discount and use the gas program. On a Dodge Ram or some other vehicle with $4000 cash back available this deal may not make sense.
iskch - May 13, 2008 8:54 am (#6 Total: 11)
An incentive to clean their dealer car lots. Nothing is free when you deal with car dealers.
mopar424 - May 13, 2008 9:29 am (#7 Total: 11)
Wow, if this had been Toyota's program, it would have been heralded as 'Toyota is trying to save the planet and ease wallet pain at the pump, what a genius idea!'.
rascal99 - May 13, 2008 9:58 am (#8 Total: 11)
The difference is I expected something like this from Chrysler. It's just how they roll in the marketplace. Que John Cougar Mellencamp and babies waving flags. Oops, I think that's GM.
It would have been out of Toyota's character though. I don't think they need to rely on gimicks. "
yes, that explains all those Tundra commercials. It cracks me up when people having nothing else to criticize buy ad campaigns. Now people hate brands based on their ads. It's funny that the self annointed elite have decided that using patriotic themes in an ad campaign is a sign of appealing to uneducated people. I'm not one for flag waving but there are plenty of people who love America and the flag. Toyota cant use such themes because its a Japanese company. They do however run lots of ads touting how many american jobs they have created and how all their plants are located in the good ol Midwest.
"I for one have never read a news report of eco-vandals setting Hondas or Toyotas on fire in the middle of the night."
what Honda trucks would eco vandals set on fire? The Ridgeline? Honda doesnt make real trucks and thus they arent targeted by folks who disdain anyone who drives a truck or SUV.
"Chrysler doing NOTHING close to save the planet. Cheap gas for thirsty SUV's is something close to killing the planet. "
Chrysler makes more than SUVs. I would think that is common knowledge. Unless this deal is only for SUVs (which its not) then I do not see your point. Chrysler is killing the planet by offeirng this program but Nissan and Toyota are not even though they are offering $4k rebates on V8 pickups. Your point doesn't hold water.
Why doesn't Chrysler/Dodge/Jeep try to make vehicles that get better gas mileage instead of this gimmick?
To be fair, Toyota's "Book of Truck" commercials are awful. I can't imagine who they inspire to go purchase that vehicle.
Wow. Never seen anyone copy the entire thread to make a point before. Wait, was there a point to that?
And, more importantly, will Chrysler exist in three years to actually fulfill its part of this deal?
I certainly think so, I mean with all their products I just dont see them disappearing. And I also dont see gas prices coming down anytime soon....usually summer time is when the prices get all jacked up, here in Canada there are predictions of a 25 cent increase per liter.
Karl,
A nice dream but gas will never see $2.50/gal again. Never.
I think "refools" is a good one. I would rather take the money! Show me the money!
It smacks of desperation by Chrysler but complete backfire as it's clear they are out to 'screw the public' with this deal.
It's like a real-life intelligence test. Those that actually buy a car for the "refooling" would have bought a totalled mobile home if it was called a 'convertible home'
Thanks to India and China growing economies and with them an increasing thirst for fossil fuels, foolish U.S. foreign and energy policies, and ever dwindling oil reserves, world wide oil/gas demand will continue to out strip production, especially for the U.S. OTOH, U.S. gas/diesel prices are still less than half of what they are in western Europe, so who are we to complain (except for record oil company profits while crude oil prices increase)?
Chrysler, as a car manufacturer, should have anticipated this by offering more fuel efficiency vehicles. Instead they promote the shortsighted gluttonous practice of trying to fill the pail faster rather than plug the holes. Looks like Chrysler accountants are trying to bandaid what Chrysler engineers can't fix.
When is the last time Chrysler made a big advancement in, or even an annoucement of, significant fuel economy?
why do people feel the need to say europeans pay more for gas?
When the truth is they pay nearly the same amount for gasoline as we do?
The only difference is the tax. I wish we split the reciepts up, so you can see the tax as a seperate line when you buy your gas.
Then the europeans would see that nearly 1/2 there gas bill is taxes, which go to pay for their 'great' public transport, or some other 'free' program.
1487:
High gas prices is the only way to stop people from buying thirsty cars. And it is working now (we know what's happening to SUV sales).
Correct me if I'm wrong, but I don't know any decent subcompact/compact/hybrid car from Chrysler/Jeep/Dodge. In April 2008 Chrylser had a 23% (!) drop in their sales. (I think overall car market went down only about 2-3%)
That proves my point that most of the cars (and SUVs) chrysler sells provide poor fuel economy, overwise, people would buy them.
I'm not saying Toyota is good, Chrysler is bad. I'm saying that this gimmick would make more people buy cars with poor fuel economy, create additional demand for gas and push the prices higher for everybody else as well.
Thank you Opfreak, for keeping me from having to post that simple little fact. Too many people go around making silly statements about how much cheaper the gas is here in America than the rest of the world, and how it's about time it caught up to us. They need to realize, the gas isn't, and the money NOT spent (the *real* additional costs hidden in the rest of the world's pump prices) *is* costing us elsewhere.
Now whether the methods of funding those hidden things is better the way they do it or the way we do it can be debated, but that isn't germaine to a discussion on the cost of fuels, or to the current topic of Chrysler's 2.99 fuel campaign.
I personally think it's an interesting move by Chrysler to get a few people back into their dealerships. I don't think it's a great deal, but it's very much like placing a bet that gas prices will or won't go even higher over the next three years. Those who are sure it's going nowhere BUT up probably will think this isn't that bad an idea. I myself am a skeptic, so I wouldn't take advantage of it, especially since it's limited to something like the first 12k miles per year (among other things). I routinely average between 15 and 20 thousand miles a year just for work. So regardless, I would end up paying full price for gas over those three years, and would likely lose out more in the way of the incentives NOT taken..
^Thats why i'd call this a gimick... But wouldn't call people fools for taking it...
Theres a gamble involved here... If you drive right around 12k miles a year... And you think gas prices will be high, then this could really work out for you.
Lets use one of the WSJ examples.
the Dodge Caravan, With Gas rebate = 500 cash back, and 1895gallons of fuel. this is vs a 2500 normal rebate.
So at 3.60 gas, like they point out, you save 1600 vs the 2500 rebate.
The WSH break even point is wrong though, you would need to save 2000 dollars on gas to have it make even (2500 rebate -500w/gas).
And 2000/1985 = 1.055, so, gas would have to cost ~4.06 or more for you to save more money.
WSJ tells you the down side... but what if gas is even slighty more then 4.06 a gallon for the next 3 years?
for every rough 10cents over 4.06, you save about 200 dollars.
if gas is 4.56, thats like an extra 1000 dollar rebate. (isn't south cal already there?)
if gas goes up another buck, to 5.06, thats almost an extra 2000 dollar rebate on the caravan.
were much close to 5 dollar gas then 2.60.
Why do people always say, "but we pay less than Europe"?
Europeans get free healtcare and social benefits for their fuel dollar. What do we get? We just line the pockets of oil companies.
I would gladly pay $5/gal or whatever EU is paying if that meant free healthcare. Anyone would.
cruiserhead1
i'm sorry your education has been so lacking
first of its more like 8-10 dollars a gallon...
and in alot of cases if you 'need' care, you still pay for it.
I'll be nice, But its not like the europeans aren't lining the pockets of the Oil companies.
Simplisiticly put...
Exon sells a barrel of oil for 126 dollars to who ever buys it. It doesn't matter if its Europe, China, USA. Its allways just about the same price.
So not only is europe lining big oils pocket.. they are also funding "Big Goverement"
"Chrysler, as a car manufacturer, should have anticipated this by offering more fuel efficiency vehicles. Instead they promote the shortsighted gluttonous practice of trying to fill the pail faster rather than plug the holes. Looks like Chrysler accountants are trying to bandaid what Chrysler engineers can't fix. "
you cannot generate cars overnight to respond to high gas prices. Incentives exsit across the board so anyone who thinks that only chrysler has incentives due to its lack of small cars is insane. Get a clue folks, Nissan and Toyota have huge incentives of their gas guzzlers and no one even comments. This plan DOES NOT exclude cars or four cylinder vehicles so the idea that its a plan designed to get people to guzzle gas is stupid.
"Correct me if I'm wrong, but I don't know any decent subcompact/compact/hybrid car from Chrysler/Jeep/Dodge. In April 2008 Chrylser had a 23% (!) drop in their sales. (I think overall car market went down only about 2-3%) "
Chrysler is more reliant on trucks than anyone else and that has hurt their sales. They cannot just shut factories overnight and phase out every SUV they make. They have to saty in business and this is one way they are trying to stiry up interest in their lineup. There is nothing wrong with that at all. This is a car company, not a person so I dont see why folks have such intense hatred for Chrysler and want them to go out of business. Do you people really think that Nissan and Toyota and other manufacturers anticipated high gas prices? Is this why Nissna just updated the Pathfinder, Armada and Titan last year? Is this why Toyota spent $1B to develop a gas guzzling truck that launched when gas was $3 a gallon?
I know that is en vogue to bash Chrysler and I dont even like their products but facts are facts. BTW, there hasnt been a massive shift to compacts and hybrids as some here are suggesting. There has been a shift from pickups and V8 SUvs to smaller SUVs and cars. The subcompact market is booming from a % standpoint because its so small to begin with.
Toyota and BMW and MB have experienced sales declines for the year thus far. This idea that only Chrysler is suffering because it makes SUVs is nonsense.
1487 - Right on right on.
didn't toyota also release there supersize SUV based on the thundra this year.
Dodge has a bad mix of products, there fault... but they are trying to make lemonade.
"and in alot of cases if you 'need' care, you still pay for it. "
Uh, you do understand the concept of insurance don't you? No matter where you live you pay for healthcare, if you need it or not.
I don't know if you are keeping up with current events but I don't see many Americans passing on healthcare saying "no, don't need it".
And yes, there are plenty that would pay $8-10/gal for the social programs offered to europeans.
That gets into a whole other debate but the point is- they are actually getting something for their pump price. We are not.
And no, the price of pump gas is not the same everywhere.
cruiserhead1 - welcome to the world of the blind.
The health care in europe is free, but if you think free = good, 100% available all times, you are gravely mistaken.
What I meant by pay, is that even though people have 'free' health care... they routianly pay for private care, that can ethier provide better, or more instant health care.
"That gets into a whole other debate but the point is- they are actually getting something for their pump price. We are not. "
Yes you are, you are getting gas are you not? fuel to power your car?
In europe when you fuel up your car, you are not only paying for that, but are charged 100% more, so that they can fund tranportation, health care, etc.
" And no, the price of pump gas is not the same everywhere."
At the end of the day it is... the cost to produce gas is pretty much fixed, if you live in an oil importing nation, you are paying pretty much the same price for the oil as anywhere else in the world.
the only thing that effects price to a large extent at the pump, are goverment taxes, or if the goverment pays to keep the gas price cheap.
like I said, the europeans get something for their pump prices.
pump prices are not the same everywhere.
thanks for clarifying your statements.
For example, in Germany they pay over 65.45 Euro cents tax, per liter of gas.
+ 19% of the what the gas costs. so the per L tax is 77.88Euro cents = ~$4.40/gallon + 19% of the current gasoline costs, lets say gas on the market costs $3.60/gallon
That means in germany, the current gas tax is about 5 dollars a gallon.
So germany has about a 5 dollar a gallon TAX.
Which is more then most americans are paying TOTAL.
( I adjusted wikipedias numbers to reflect the current dollars value)
from wikipedia
"Fuel taxes in Germany are 47.04 Euro-Cents per litre for ultra-low sulphur Diesel and 65.45 Euro-Cents per litre for conventional unleaded petrol, plus Value Added Tax (19%) on the fuel itself and the Fuel Tax. That adds up to prices of 1.19 Euro per litre for ultra-low sulphur Diesel and 1.37 Euro per litre (approximately USD$7.615 per gallon) for unleaded petrol (Sep 2007)"
"Do you people really think that Nissan and Toyota and other manufacturers anticipated high gas prices?"
If they didn't, someone should be fired. Anyone who thought prices were going to stay the same, or go down, is a fool. The introduction of larger trucks and SUVs is because they believe that even with high future gas prices, the market exists.
I geuss honda and toyota missed the gas rise boat too.
since the hyunda sonata, and the new malibe i4 with 6spd auto get better gas milage then the accord and camery 4 cylinders.
"If they didn't, someone should be fired. Anyone who thought prices were going to stay the same, or go down, is a fool. The introduction of larger trucks and SUVs is because they believe that even with high future gas prices, the market exists."
Good thing you are smarter than all the auto execs. Care to tell me how anyone could have predicted a 100% increase in a 5 year span? Thanks. When you've had cheap fuel for 25 straight years its kind of hard to predict a sharp upturn that isnt really based on increased demand. All the experts agree that current prices are higher than they should be given the level of supply and demand in the world. I read somewhere that based on current demand oil should be $60 a barrell. No one in the auto business saw this coming. I just read that Kia has recently cancelled its program to build a pickup due to gas prices.
"Good thing you are smarter than all the auto execs. Care to tell me how anyone could have predicted a 100% increase in a 5 year span? Thanks. When you've had cheap fuel for 25 straight years its kind of hard to predict a sharp upturn that isnt really based on increased demand."
I don't claim to be smarter then auto execs. All I said is that in my opinion, the auto execs knew that gas prices would rise. Perhaps they didn't predict 100% in 5 years, but it certainly was going to go up. 5 years corresponds pretty nicely with the start of America invading Iraq too, which gives investors plenty of reasons to push oil prices sky high. Either way, it wasn't some huge blindside in that they woke up one morning and suddenly no one was buying their SUVs.
"All the experts agree that current prices are higher than they should be given the level of supply and demand in the world. I read somewhere that based on current demand oil should be $60 a barrell. "
I think people generally understand that somewhere along the line, someone is making way more then they should be on the oil profits. Unfortunately, no one is willing to do anything [major] about it. So, the majority of us get screwed.
"Thanks."
You're welcome. Remember 1487, smiley happy! You'll live longer.
doug, it actually kind of was, the economy was going well up until the end of last year, and even with 3+ dollar gas big truck/suv sales weren't hurt.
Its only now that gas has gone up to 4 dollars, and a soft economy, that the bottom has dropped on sales of trucks/suvs
"Either way, it wasn't some huge blindside in that they woke up one morning and suddenly no one was buying their SUVs."
I disagree. Gas went from less than $2 to over $3 in a very short time period and that is a huge relative increase. It takes 4-5 years to develop a vehicle so anything on the drawing board in 2005 wont be on the street until 2009 or 2010. You cannot change a product lineup overnight based on the whims of oil speculators. In the early 2000s the press was lauding import SUVs and pickups and saying how the Asians were about to crack the last stronghold of the Big 3. Fast forward 5 years and the tune has changed to "the big 3 are peddling gas guzzlers and once again missed the boat while import brands were ready with a stable of fuel efficient small cars and hybrids". Apparently when Nissan was launching the Titan and Toyota was spending $1b developing the 14mpg Tundra they were fully aware that gas would be $4 a gallon. The same folks who were praising the penetration of imports into the SUV and pickup markets are now pretending that never happened and that import brands have been focused on nothing but fuel efficient offerings.
op,
My comment is more related to where things were headed. The actual tipping point may have been sudden, but I think there was a lead up to it when people "in the know" generally agreed about the direction of the ship.
edit: I didn't see 1487's response when I posted, so I guess the above applies to him too.
The thing is, if gas prices do skyrocket and the "Let's Refuel America!" special does become cost effective, it'll cost Chrysler so much money that they'll go bankrupt anyway and the incentive will be null and void.
On the other hand, if gas prices go down (seriously?), then this doesn't do a bit of good.
I don't even think this would benefit travelling salesmen either since Chrysler caps the number of miles it will reimburse.
I just saw on the news last night that the "Refueling America Rebate Progam" has been such a big success for Chyrsler, they extended the progam another month.
is this Chrylser's spin on it or are people actually this easily 'refooled'?
I told you all this was a great marketing idea! It's like the fact that people with drive 5 miles out of their way to save 5 cents a gallon on gas. If you get 25 mpg and gas is $4 a gallon it COST you 10 cents (round trip) to drive for the cheaper gas.