Chrysler Offers $2.99 A Gallon Gas Deal

Gas Price Tied To Special Credit Card For New Buyers; Automaker Will Foot The Difference For 3 Years

(CBS/AP)  Chrysler announced Monday an offer that caps the price of gasoline at $2.99 a gallon for three years for people who buy or lease new vehicles from Wednesday through June 2. The offer is based on 12,000 miles of driving per year at the vehicle's rated fuel economy.

Customers will get a card for buying gas that is linked to their own charge account, Chrysler said. The customer will be billed $2.99 a gallon, and Chrysler will pay the rest.

Actual savings depend on what happens to gas prices over the next three years, but based on the $3.61 a gallon average price reported Monday by AAA, someone buying a 2008 Chrysler PT Cruiser, which gets an estimated 21 miles per gallon in city driving, would save $355 a year.

"It's a way to give (customers) peace of mind," Steven Landry, executive vice president for North American sales, said in a conference call Monday evening. "We want to get everybody through these challenging times."

Chrysler LLC Chairman and Executive Bob Nardelli also announced Monday the automaker should be able to meet its job-cutting goals without antagonizing the United Auto Workers.

As part of the efforts to trim the payroll, Nardelli said Chrysler will try to move workers currently in jobs banks into openings created at factories where large numbers of workers took buyouts or early retirement packages.

Workers in jobs banks get most of their pay while on layoff.

The company is working to reach its job-cutting goals through means other than layoffs, Nardelli said.

He said Vice Chairman Tom LaSorda and his management team have not missed a target, "and I'm confident that they'll be able to achieve that ... objective in a very cooperative way."

Chrysler announced in November plans to cut up to 11,000 jobs, including 8,000 to 10,000 hourly and 1,000 salaried positions.

Speaking to reporters at an event held to honor Chrysler employees who have served in the military, Nardelli called proposals by presidential candidates for a holiday on the federal gasoline tax a short-term solution.

"If you look at the bigger picture - from an energy standpoint, from an environmental standpoint and from an economic standpoint - one would certainly suggest trying to encourage consumers to be more cognizant of not only miles per gallon but the number of miles they're driving," he said.

The former CEO of The Home Depot Inc. also recommended that the federal government create an incentive for people to buy domestically produced cars such as hybrids Chrysler plans to launch later this year.

[stevedo5]

Here''s an idea! How about getting a few great mind''s together and building a quality transport that dosn''t use fossil fuel''s at all. Maybe somthing self generating or... Wait there''s no money in that. I beleive that there is greed problem in our fuel crisis among other area''s as well.

[algoresarse]

JUST CONSERVE GASOLINE...seeeeesh!!!

[mjvw2]

Charge an 80% tax on oil companies, (that will bring their profits down to what they were before the Bush Regime let them steal all that money from us). Then, have all gas stations sell their gas at 50% off, which they will be reimbursed on by the government.
Posted by lochlan

Someone wasn''t paying attention in Econ class. Companies don''t pay taxes; people do. Taxes start out a cost to the company and all costs are built into the price. Then when you tax profits you tax those evil rich shareholders. By the way, the single largest Exxon shareholder is the United Police and Fireman''s Retirement Fund. Yes, those evil rich. How ignorant are you.

[buttonjockey]

I don''t think this is a good deal. Let''s see:

12000 miles for 3 years is 36000 miles. If the car gets 20mpg (pretty typical or even generous for a Chrysler) then that''s 1800 gallons of gas. If gas hovers near $3.50 per gallon, that''s $900 going back into your pocket. Not such a big rebate.

Instead, get a rice burner at 30mpg and drive 36000 miles. That''s 1200 gallons of gas at $3.50 which costs you $4200. But while your buddy in the Chrysler got $900 back, he spent 1800 x $3.50 or $6300 in the first place for a net cost of $5400.

Gas would have to average $4.50 a gallon for the Chrysler deal to beat driving a 30mpg car but then after 3 years near $4.50 per gallon, the Chrysler will be too expensive to drive and worth a lot less to sell.

[wardoglrs]

OPEC''s price is cheap its the Federal Reserve and the banks that create inflation. You should watch this vid by milton Freidman. Our own goverment is ripping us off intentionaly
wwwideachannel.tv

[lochlan-2009]

Solution to the gas pricing:

Charge an 80% tax on oil companies, (that will bring their profits down to what they were before the Bush Regime let them steal all that money from us). Then, have all gas stations sell their gas at 50% off, which they will be reimbursed on by the government.

[valentin73]

......ANYTHING TO SELL A ***, STINKING CAR......DON''T BELIEVE IT!!! THERE IS NO SUCH THING AS LOCKING THE PRICE OF GASOLINE OVER THE NEXT THREE YEARS.......YOU''LL PROBABLY END UP PAYING MORE FOR ''HIDDEN'' COSTS UP-FRONT. THIS IS JUST CLEVER MARKETING SCAM.

[nonayabiness]

Dominion Virginia Power is asking to raise power rates by 18.3%. How can we afford that? Gee, I wish I could get a 20% increase to pay for my increased fuel costs.

So, Americans, not only are we paying the $3.50 plus for our own needs, we are paying through the nose of companies who have no incentive to save on fuel costs because they can just ''pass it on'' to the consumer. We are paying WAAAAY more than $3.50/gallon.

[swwils]

That is a start,now get everyone else to tag along.Seems too me it would work,if all will play ball.Government will have to intervene,Stop the Fed from dropping the interest rate,I have seen too many of my friends loose their homes already.Get the gas low that is what the blue collar man,and woman want.

[dylanxxv]

American workers CAN and DO build good, solid, long-lasting, efficient cars ... but they work in factories owned by Honda and Toyota. Will Detroit EVER wake up before there''''s nothing left of our once-great auto industry????

Posted by JayKay3141 at 09:00 PM : May 06, 2008

LOL...Did you see the latest ford commercial where they claim to now build cars that are equal to toyota in quality? You would think they would strive to be better, not equal...

[jaykay3141]

Let me see if I can figure this out. Chrysler produces:

Dodge Magnum - looks like the second runnerup in a low-rider wannabe contest, with a plastic interior to boot.

Chrysler 300 - didn''t the gangsters in Roger Rabbit drive a cartoon version of this monster?

The Caliber - a hunched-over lump that resembles a lifesize Tonka Toy

Nitro - a poor man''s Jeep with more muscle in its name than under the hood

and hardly anyone bought them, so now they''re trying to bribe the public with gas to feed these dinosaurs - not to mention sending even more bucks to Chavez, Putin, and the sheiks.

American workers CAN and DO build good, solid, long-lasting, efficient cars ... but they work in factories owned by Honda and Toyota. Will Detroit EVER wake up before there''s nothing left of our once-great auto industry????

[dylanxxv]

Well, that''''s all fine and dandy for the people who can afford to buy or lease new cars, but what about the rest of us?

Posted by mediamomma at 12:42 PM : May 06, 2008


Whine, whine, whine...Buy a bicycle or walk...

[dylanxxv]

Well isn''''t that just so sweet of them! How do they expect us to pay for the new car? What happens after the three year expiration date? Are we then supposed to pay $7 per gallon (which is what it will be by that time)? The same old tricks to fix the same old problems with the same old solutions - can''''t ask for more than that cause you surely will NOT get more than that! Good try Chrysler - no thanks, can''''t afford it!

Posted by ObamasLady at 02:10 PM : May 06, 2008


Try getting a job...And why does it matter what gas prices will be after the 3 years is up? If it''s $7.00 a gallon as you say, then that''s what you will pay...

[trenticus-2009]

2.99 a gallon a deal??? Boy Chrysler has been de-sensitized to the cost of fuel. So I guess they see ANYTHING under 3.00 a deal. Keep the wool. My eyes are wide shut!

[jboxton]

They are desparate. The quality of cars they produce sucks so they finance anyone with a pulse and have to resort to this stuff to sell their ***.

[tylenol6]

These are the members of congress who receive BIG OIL
contributions.


The "SLICK TWELVE" are:

1. Rudy Guiliani (R) $649,608
2. Mitt Romney (R) $441,263
3. JOHN MC CAIN (R) $283,285
4. HILLARY CLINTON (D) $276,150
5. Bill Richardson (D) $199,275
6. Fred Thompson (R) $163,754
7. BARACK OBAMA (D) $ 157,390
8. Kay Bailey Hutchinson (R-Tex) $300,161
9. John Cornyn (R-Tex) $180,000
10. Dennis Hastert $134,600
11. John Kyle (R-Az) $133,700
12. Heather Wilson (R-MN) $144,000

[tylenol6]

These are the members of congress who receive BIG OIL
contributions.


The "SLICK TWELVE" are:

1. Rudy Guiliani (R) $649,608
2. Mitt Romney (R) $441,263
3. JOHN MC CAIN (R) $283,285
4. HILLARY CLINTON (D) $276,150
5. Bill Richardson (D) $199,275
6. Fred Thompson (R) $163,754
7. BARACK OBAMA (D) $ 157,390
8. Kay Bailey Hutchinson (R-Tex) $300,161
9. John Cornyn (R-Tex) $180,000
10. Dennis Hastert $134,600
11. John Kyle (R-Az) $133,700
12. Heather Wilson (R-MN) $144,000

[tylenol6]

These are the members of congress who receive BIG OIL
contributions.


The "SLICK TWELVE" are:

1. Rudy Guiliani (R) $649,608
2. Mitt Romney (R) $441,263
3. JOHN MC CAIN (R) $283,285
4. HILLARY CLINTON (D) $276,150
5. Bill Richardson (D) $199,275
6. Fred Thompson (R) $163,754
7. BARACK OBAMA (D) $ 157,390
8. Kay Bailey Hutchinson (R-Tex) $300,161
9. John Cornyn (R-Tex) $180,000
10. Dennis Hastert $134,600
11. John Kyle (R-Az) $133,700
12. Heather Wilson (R-MN) $144,000

[tylenol6]

These are the members of congress who receive BIG OIL
contributions.


The "SLICK TWELVE" are:

1. Rudy Guiliani (R) $649,608
2. Mitt Romney (R) $441,263
3. JOHN MC CAIN (R) $283,285
4. HILLARY CLINTON (D) $276,150
5. Bill Richardson (D) $199,275
6. Fred Thompson (R) $163,754
7. BARACK OBAMA (D) $ 157,390
8. Kay Bailey Hutchinson (R-Tex) $300,161
9. John Cornyn (R-Tex) $180,000
10. Dennis Hastert $134,600
11. John Kyle (R-Az) $133,700
12. Heather Wilson (R-MN) $144,000

[aggiekat2004]

Hey QuetzalCrist,

I''d never give up my Murano for a Chrysler, either!

Although a Dodge Ram Diesel 4x4 saved my life once...but I couldn''t afford to drive it now.

American car companies still build crummy cars. I blame it on the unions.