Low Impact Living: Oh Please — Chrysler Offering $2.99 Gas for 3 Years
Editor’s note: There’s no doubt: Americans are feeling the pinch at the gas pump (even if we’re still paying less than residents of most other developed nations). Our friends at Low Impact Living, though, think Chrysler’s attempt to lure car buyers with the promise of gas at $2.99/gallon is, well, lame. This post was originally published on Friday, May 23rd, 2008.
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 in the month of May 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– producing more green house gases and increasing global warming.
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Why doesn’t Chrysler just give buyers a rebate? 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. How about just offering buyers a $1000 rebate? That would 1) help Americans NOW; 2) save Chrysler money over time and 3) reduce the incentive to burn fuel and pollute our skies.
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 Friday afternoon so I think I’ll jump in my Prius and get 43 MPG on the way home….
Read more about (real) Fuel Efficiency:
- Can Improved Spark Plugs Boost Both Fuel Economy and Performance?
- Goodbye Trucks and SUVs; Hello Gas Saving… Geo Metro?
- How to Get 70 MPG Out of a Honda Civic
Image source: Chrysler News
Damn, what a terrible, terrible idea for a solution to our problems, and I didn’t buy it one bit fortunately.
It’s better that we stick to algae-fueled and/or compressed air-powered cars. That’s the way to go, America.
I actually hope this puts Chrysler out of business. It’s just a stupid move in every way. “We’re not willing to change/innovate/makes something you would actually want to drive, so we’re going to buy your business.”
Couldn’t agree more, wrong solution for our day.
You do realize that the $2.99 gas incentive is only one of three options any Chrysler customer can choose from, right? Cash incentive options, $2.99 gas option, Low Interest Rate options. Otherwise, your opinion would be undoubtedly uneducated and frankly easily dismissed.
Personally, I like the idea of a company taking an attack position against a corrupt government that allows a monopoly on skyrocketing gas prices (profits) not that long after they have antitrust settlements against other industries. This same government has refused to make a move towards taking the health care burden off of the US manufacturing companies therefore reducing the amount of money that can be spent on R&D relative to the Japanese companies that have state-paid medical care. When the Japanese average health care costs of $250 per vehicle sold, versus the average $1,500 per vehicle sold for US manufacturers, it is quick to see why the US auto companies are slow to catch up when they’ve been building the work vehicles that move America for 100 years now. Interestingly, Mexico’s owning of all the gas stations has allowed the gas price to be significantly less than what we pay in America and begs the question why all of the gasoline sold in the US isn’t purchased first by the US government then provided to the distributors.
They have to make up for it one way or another.
Please read–Americans need to know!!!!!!!!
NHTSA Hearings 8/4/08
I just returned from the NHTSA hearings held today (August 4, 2008) in Washington D.C., regarding the Draft Environmental Impact Statement (DEIS) for NEW Corporate Average Fuel Economy standards (CAFÉ) for years 2011-2015.
IMPORTANT FACTS: You will not believe what you are reading.
1) The 414 pages DEIS analysis was based on an average gasoline price of USD $2.16/gallon for 2011-2020. A calculation approved by the NHTSA administrators/managers. Would you believe it???????????
2) The new CAFÉ rules were also established, negotiated and pre-approved by the NHTSA’s management along with the influence of domestic automotive companies and their lobbyists. We have now established fuel standards for 2011-2020 that presently are already met in the rest of the Western world (see below)
As one guest speaker said today “are they on another planet?”
NHTSA “NEW Fuel Standards” (2011-2015) decision:
Automobiles are to achieve 31.2 mpg by 2011 and 35.7 mpg by 2015. Light trucks are to achieve 25 mpg by 2011, and 28.6 mpg by 2015.
The NTHSA is also setting a goal of 35 mpg on average for 2020.
America needs to know:
The European Union is currently establishing standards, with a goal of reaching 48.9 miles per gallon for new passenger vehicles as early as 2012. The current EU standard already requires more than 40 miles per gallon about 15% higher than the U.S. goal set for 12 years from now.
Japan currently has a standard of about 40 miles per gallon. Japan aims to further improve fuel efficiency by 17% by 2015, reaching 46.9 miles per gallon.
China has a current average of slightly under 35 miles per gallon. Chinese fuel standards are on target to reach the government’s goal of 35.8 miles per gallon by 2009. China will not only meet, but exceed, the goal just established by the United States for 2020 — more than a full decade earlier.
Australia is targeting 34.4 miles per gallon by 2010.
Canada is targeting 34.1 miles per gallon by 2010.
Under the current administration, purchasing an electric vehicle is becoming more of a necessity rather than an alternative.
BG Automotive Group, Ltd.
(www.BGelectricCars.com)
Your conservative prediction of gas being $4.25 in 2009 looks pretty good right now.