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Chrysler Offers Gas Subsidy to Unload Guzzlers

Three years at $2.99 a gallon

By Joe Benton
ConsumerAffairs.com

May 6, 2008

The sales incentive applies to most Chrysler, Dodge and Jeep vehicles if the customer fills up at eligible gas stations using a gas card they receive from the automaker.

The plan also covers new vehicle leases.

The $2.99-a-gallon gasoline subsidy does not come with a new SRT model, Dodge Viper, Dodge Challenger, Dodge Ram Chassis Cab, Chrysler Crossfire, Jeep Wrangler or the Dodge Sprinter.

Chrysler is struggling with a sales decline that is twice the industry average. So far in 2008, Chrysler car and truck sales are off almost 18 percent.

The Dodge Durango is one of Chrysler's leas efficient vehicles with a stated fuel economy of 13 miles to a gallon in the city and 18 on the highway.

Some Dodge dealers are discounting Ram pickups by as much as $13,000 to clear their lots before the 2009 truck arrive. Dodge dealers have a 109-day supply of 2008 models sitting on their lots.

Ford, General Motors and Toyota all denied having any plans for a similar gasoline subsidy.

There is a limit to the subsidy. The Chrysler gas plan is based on a new buyer driving 12,000 miles a year and the government fuel economy rating for the vehicle. At current gasoline prices, the driver of a Dodge Ram 1500 pickup would save about $465 a year over 12,000 miles.

Participating Chrysler customers will receive a card from the automaker that is linked to their gasoline charge card. Participating customers will then be billed $2.99 a gallon, and Chrysler will pay the remainder.

New car and truck buyers who are not interested in the gas subsidy plan can choose other incentives. The Dodge Ram pickup carries a $5,500 rebate. A buyer can select the rebate or the gas subsidy plus a $3,000 cash bonus.

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