Chrysler Extends $2.99 Gas Promotion

Today, Chrysler announced it would extend its $2.99-gas guarantee promotion through July 31. It also announced a huge 36% loss in sales for the month of June. Ford, GM and Toyota posted losses of 28.1%, 18.5% and 11.5%, respectively. While gas prices have been at the forefront of peoples’ minds as of late — and many dealers report the gas deal does indeed bring people into showrooms — we certainly aren’t seeing a stellar impact on sales for Chrysler.

Only four models saw sales increases last month: the Chrysler Town & Country and Dodge Caravan minivans, the Jeep Patriot and the Dodge Viper. The new Dodge Journey crossover also had a strong month. It seems people are buying the most efficient or utilitarian vehicles they can find — not including the 79 new Viper owners — regardless of the promotion. Even so, the automaker’s most affordable car, the relatively gas-thrifty Dodge Caliber — 24/29 mpg city/highway — saw sales drop 44%, even with a choice between $1,000 cash back in some areas or a gas savings of more than $1,500 (provided gas stays at $4 per gallon). That would bring the base price under $14,000.

Let us know if the gas deal has prompted you to take a second look at a Chrysler, Dodge or Jeep.

Comments

What's a Caliber? That's what most Americans would say if you asked them about Caliber.

Why? Because Dodge doesn't advertise it much.

Same thing goes for the Avenger and the cars available under the Chrysler brand, especially the lower priced ones.

If you want people to buy your product, you have to make them aware of the product.

As much as I love the Dodge/Chrysler brands, I would not buy one if I had to buy a new car. Owning 2 Dodges currently, I only think the Charger (which we have) is a great deal. Everything else seems cheap, especially looking at other offerings. So sad, I hope they get their act together soon and offer better product soon.

this 2.99 deal is a joke and a diaster for america. You have a 5th rate car maker (chrsyler) basically saying that we have to give their cars away with this gimmick because no one realy wants our cars. Why dont they use the money that spend on this gimmick and build and devlop hybrids? So u have a dying car maker that wants to increase fuel consumption, put less fuel efficent cars and suvs on the streets, just to sell more cars. Disgraceful in my opinion.

This does not solve the oil addictive problem.

The problem is that people cannot imagine being satisfied with these cars in the long run to make the effort of buying one simply because they can get gas guaranteed for $2.99/gal over the next 3 years. On top of that, the guarantee works only if you fuel up at the dealer, which can be very inconvenient.

If someone was looking to buy a compact car for its efficiency, there would be no reason to consider the Caliber when the competition gets considerably better gas mileage. I was very surprised when Chrysler decided to replace the Dodge Neon with the Caliber. The car is too heavy to compete with cars like Civic, Focus, Sentra in regards to efficiency. Put the functional disadvantages aside, and most people would not think the cars are very attractive. If the argument is that the looks are not for everyone and it's for people who want to be different, then it should be expected that the sales volume would be considerably less than the competition.

Aaron,
the deal has nothing to do with filling up at the dealer. It uses your credit card and works at any of a huge group of participating stations.

Dave,

Can you confirm that? I heard from people who were considering to buy cars with this deal that they were told they would have to fill up at the dealer.

"This does not solve the oil addictive problem."

I can't wait until the libbies tackle the food problem. Next thing we'll be told that we need to liberate ourselves from food. Here's a hint: It's not an oil addiction problem it's a oil drilling problem. Simple supply and demand.
I don't know if anyone read the WSJ article regarding Democrat Senators and their Oil Co holdings but it sure was an eye opener. It's ironic that the Dems hold a ton of stock in our top three oil companies, surprisingly more so than the low-life Cons. Gee I wonder if the Dems are benefiting by doing nothing about gas prices.

Gas has went from $1.50 a gallon to $4.00 a gallon in the 8 years that W has been in office. Wake up people ... it has very little to do with supply and demand.

Park,
By mixing up oil problem with food problem shows how good a statement that is.
The gas deal is good for drivers who drives close to the limit of mileage. But better for those who gets 13mpg than 18mpg.
That's what I meant by the deal does not solve the oil addicting problem.