Chrysler Fixes Gas Prices for Three Years

If you buy a Chrysler this month
by Frank de Leeuw van Weenen
May 6, 2008 1:14 PM
Filed Under: American, Chrysler, Dodge, Jeep

Gas prices are the talk of the town across the USA, and even though US fuel prices are no where near European pump prices it is quickly becoming a pressing issue for many Americans. This month Chrysler will offer their customers who buy a new and unused Chrysler, Dodge or Jeep (except all SRT models, Dodge Viper, Dodge Challenger, Dodge Ram Chassis Cab, Chrysler Crossfire, Jeep Wrangler and Dodge Sprinter) the option to take the Let's Refuel America credit cards which will charge just USD 2.99 per gallon for the next three years. The price is applicable to diesel, E85 and up to 87 octane regular fuel. Mid-grade unleaded (88-89 octane) will cost USD 3.14 while premium (90-94 octane) fuel will cost USD 3.29 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,” said Jim Press, Vice-Chairman and President of Chrysler.

Yesterdays regular gasoline prices were averaging at USD 3.61 per gallon (up from an early 2007 USD 2.20) while diesel fetches USD 4.14 per gallon (up from an early 2007 USD 2.50) at the pump. This may just become a very costly program for the new Cerberus led Chrysler if prices continue to rise the way they have done over the last year.

Source: Chrysler LLC
Press Release (Click to expand)

Chrysler LLC Delivers Economic Stimulus; Protects Consumers from Rising Gas Prices for Three Years

  • “Let’s Refuel America” available throughout the U.S. exclusively at Chrysler, Jeep® and Dodge dealerships through June 2, 2008
  • Three-year price protection from volatile gas prices available on compact, mid-size and full-size models, minivans, crossovers and pickup truck models
  • Seventy-six percent of customers cite rising gas prices as “top concern”

In response to direct customer feedback citing the prospect of rising gas prices as a top concern, Chrysler LLC today announces its own economic stimulus package: an exclusive gas price protection policy that eliminates the risk of further spikes in fuel prices. With the U.S. purchase of eligible Chrysler, Jeep and Dodge vehicles, customers can enroll in the “Let’s Refuel America” program and receive a gas card that immediately lowers their gas price to $2.99 a gallon, and keeps it there for three years. The offer is available at 3,511 U.S. Chrysler, Jeep and Dodge dealerships through June 2, 2008, and is available on vehicles ranging from popular new compacts, crossovers and minivans to full-size diesel-powered pickup trucks.

“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,” said Jim Press, Vice-Chairman and President, Chrysler LLC. “The Let’s Refuel America Price Guarantee puts money in your pocket today, and allows our customers to better manage their fuel expenses. And you can't get it anywhere else besides a Chrysler, Jeep or Dodge dealership.”

The Let’s Refuel America program offers consumers a combination of the fuel price protection program and additional bonus cash up to $3,000 on available vehicles, including Chrysler PT Cruiser, Dodge Charger, Jeep Grand Cherokee, Dodge Dakota and Dodge Ram.

Consumer Economic Solutions

Chrysler has a number of solutions to help our customers during these tough economic times. “Chrysler is committed to providing the best value, and the least worries, for our customers,” said Press.

Chrysler’s lineup includes five models for under $20,000 that get 28 miles-per-gallon or better on the highway. To protect consumers from unexpected repair costs in the future, Chrysler models come with the industry’s best powertrain warranty, covering the original owner for the life of the vehicle. And Chrysler has made a number of its most popular options standard on its New Day Package vehicles.

Program Description

The Let’s Refuel America gas card program works when a customer purchases a new and unused Chrysler, Jeep or Dodge vehicle and selects the program in lieu of other available incentives. The customer is provided with the registration process documentation and registers providing their required personal information via the dedicated web site or toll-free 800 number. Once registered, the customer receives their gas card and separately, their Personal Identification Number (PIN) within 4 to 6 weeks of application. The customer then swipes their Let’s Refuel America Gas Card at an eligible gas station, selecting up to 87 octane regular, E85 fuel or diesel fuel, and enters their PIN to begin the fueling process. After the fuel transaction occurs, the customer’s personal credit card (identified in the registration process) is charged $2.99 per gallon*.

Let’s Refuel America Eligibility

The following vehicles are eligible for the Let’s Refuel America program:

  • Small/Compact Car
    Dodge Caliber, Chrysler PT Cruiser, Chrysler PT Cruiser Convertible
  • Mid-size Car
    Dodge Avenger, Chrysler Sebring, Chrysler Sebring Convertible
  • Large Car
    Dodge Charger, Chrysler 300, Dodge Magnum
  • Crossover
    Dodge Journey
  • Minivan
    Dodge Grand Caravan, Chrysler Town and Country
  • Compact SUV
    Jeep Patriot, Jeep Compass
  • Mid-size SUV
    Dodge Nitro, Jeep Liberty
  • Large SUV
    Jeep Grand Cherokee, Jeep Commander, Dodge Durango, Chrysler Aspen
  • Pickup Truck
    Dodge Dakota, Dodge Ram, Dodge Ram HD

The following vehicles are not eligible for the Let’s Refuel America program: All SRT models, Dodge Viper, Dodge Challenger, Dodge Ram Chassis Cab, Chrysler Crossfire, Jeep Wrangler and Dodge Sprinter.

* If mid-grade or premium unleaded fuel is purchased, the customer will be billed for the $2.99 plus $.15 per gallon for mid-grade (88-89 octane) or plus $.30 for premium (90-94 octane). All other grades of fuel higher than 94 octane are not covered under this program and the full pump price will be billed through to the customer plus a $2 service fee per transaction with no gallon usage penalty. If customer purchases unleaded gas (including E85) on a diesel card, or diesel fuel on an unleaded gas card, the customer will be billed the full pump price plus $2 service fee per transaction with no gallon usage penalty.

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Comments

This illustrates how dependent the Big Three auto companies are to their SUV profit margins. Instead of retooling their lineup for fuel-efficient solutions, they bankroll programs like this to keep selling their gas guzzlers. I think consumers are in control here, and hearing how SUVs are being traded-in for 4-cylinder 4-door sedans and depressing the value of used SUVs, I think its a safe bet we can see further loss reports in the news for Detroit automakers.

by jsb | May 6, 2008 3:17 PM
Why do you lump the big three together? This is just Chrysler.

by gmfan09 | May 6, 2008 5:54 PM
Even the sedans like 300C consumes as much oil as some SUVs. It's a desperate move for Chrysler to increase sales in any way possible in a short term to show some positive results to the investors.

by autoque | May 6, 2008 4:21 PM
Wow...Chrysler has now offically hit rock bottom, with gas going to 4 dollars this is a big chunk of change out of there pocket. The question really is when will this company fall, or better yet what company is waiting in the bushes to by them when they are at the cheapest

by foose1397 | May 6, 2008 4:55 PM
i hope GM buys mitsubishi when chrysler goes under

by drag | May 6, 2008 5:37 PM
mitsubishi was offering the same and more and till this moment

by fire_bird | May 6, 2008 7:04 PM
They still have bad cars and trucks, so why waste $ when u can buy a Mailbu or prius and still save $ on gas.

by coopergt | May 6, 2008 9:56 PM
I was just thinking about buying a Viper...but it's excluded... too bad other Chrysler cars won't attract me...

by nardow12 | May 6, 2008 10:55 PM
"except all SRT models, Dodge Viper, Dodge Challenger, Dodge Ram Chassis Cab, Chrysler Crossfire, Jeep Wrangler and Dodge Sprinter"

... lol that list is huge

by joe_limon | May 6, 2008 11:12 PM
in europe (particularly in finland) E95 fuel costs 8.52 USD per gallon, I'm quite mad for all the bitching from the biggest consumer country.

by zzats | May 6, 2008 11:50 PM
Yeah, basically any Chrysler product you might want to own (except the 300) This is a really stupid, expensive idea- just buying sales without actually improving the product...anyone remember Hoovers free flight to New York promotion? Americans need to wake up to the fact that petrol will get more expensive and buy more economical cars.

by joelynn | May 7, 2008 12:56 AM
There's gotta be a catch to this...like its a credit card with an ungodly interest rate or something...look at it that way and if you only pay a min. payment, u wuld end up paying like $5.00 per gallon...otherwise this will create huge losses...paying for gas for a months worth of sales for 3 years with no sign of dropping oil prices is borderline suicidal

by NISMO | May 7, 2008 12:07 AM
I will say tho...Chrysler's marketing team is genius...the same people that brought us the lifetime warranty, that's really not all that great when your read into it...

by NISMO | May 7, 2008 12:08 AM
well, if it is starting right now, they won't start losing money till the gas prices go up, also it isn't going to make people drive more since they are paying the same amount for fuel. I pay more in insurance each year then in gas, so it isn't like this venture will cost Chrysler $10,000 or even $5,000 a vehicle.

by Joe_Limon | May 7, 2008 2:37 AM
They could just sell the cars for 5k less... same stuff.

by mps | May 7, 2008 10:55 AM
PEOPLE WAKE UP CHRYSLER SUCKS BIG TIME AND SO DO GM AND FORD ITS THE BIG 3 LOSERS. EVERYBODY IS BETTER OFF WITH EUROPEAN AND JAPANESE CARS. BETTER ECONOMY AND PRICES.THIS A DESPARATE APEMPT TO BOOST SALES.

by vadizzel | May 7, 2008 5:17 PM
the caps makes you look retarded. Also, lets compare mileage ratings among average cars made in each of the three main auto centers. Ford Focus 24/35,Dodge Avenger 24/32, Chevy Malibu 22/30, Merc E class 24/44, VW jetta 22/29, Alfa 159 21/38, Honda Accord 22/31, Nissan Altima 19/27 or 23/32 for the 1 liter smaller engine. I dunno the numbers speak for themselves, these are all midsized cars. I think everyone is pretty well on par, europe has some amazing highway numbers... which is weird because most of their driving is in the city.

by Joe_Limon | May 8, 2008 1:39 AM
here is the fineprint *The gallon allotment calculation used to determine three years of gas at $2.99 per gallon is as follows: 12,000 miles driven per year multiplied by 3 years, divided by vehicles adjusted combined EPA City/Hwy. average miles per gallon (MPG) (average MPG calculated via average of all body models MPG within each nameplate). Please refer to attached matrix to view individual nameplate average MPG and program gallon allotment.

meaning that you get up to 2,118 gallons for a Chrysler 300C that guzzles 17 mgp for $2.99 saving a good $2k at current prizes in Chicago....really not all that much incentive but clever marketing.

by muellr | May 7, 2008 9:09 PM
In New Jersey, I can get gas for $2.89 now that the republicans have thoroughly raped America.

by localized | October 16, 2008 3:28 PM

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