just for fun, here's an article on the Chrysler gas plan
AHEAD OF THE CURVE
Chrysler's timely, but misguided, incentive plan
By Shawn Langlois, MarketWatch
Last update: 7:01 p.m. EDT May 6, 2008
SAN FRANCISCO (MarketWatch) -- In fine Detroit fashion, Chrysler is looking to help ease the gasoline junkie's pain by cutting the cost of the fix.
The automaker, struggling to kick-start sales of its truck and SUV-heavy lineup, announced on Monday its latest sales pitch, dubbed "Let's Refuel America" -- an incentive plan that will cap gas prices at $2.99 a gallon for buyers of most Chrysler, Dodge and Jeep vehicles.
With oil increasingly looking like it might hit $200 a barrel this year, according to a forecast from Goldman Sachs, Chrysler is hoping desperate consumers will come running. But will they?
Chrysler points out that gas prices overwhelmingly top the list of concerns facing new car buyers. Anybody tuning in to monthly sales data knows that, as sales of pickups and SUVs continue to plunge while fuel-sipping sedans and crossovers are still moving off dealers' lots.
Since Chrysler relies more on those big, gas-quaffing vehicles than any other manufacturer, the brain trust over at owner Cerberus Capital Management figured it's time to act. Makes sense. After all, presidential hopeful John McCain must have followed similar logic when he came up with his plan to give drivers a "vacation" from federal gas taxes.
Unfortunately, the approach, and the message, illustrates why the Detroit Three have found themselves in this predicament in the first place. A near-term fix to a long-term problem.
CarsDirect.com analyst Mark McCready doubts that many consumers will opt for the deal, but he said that's not really the point. "The goal is to drive traffic and give consumers a clear message that 'now' is the time to buy. This should do just that," he said.
While Chrysler is giving customers an excuse to buy vehicles they may not otherwise want, the competition is focusing on making more vehicles they do. This has plagued domestic automakers for years as they continued to push their once highly-profitable SUV and truck lineup when a shift away from the costly segment was already underway.
Chrysler President Jim Press would have probably reacted to the plan with utter disbelief when he ran Toyota Motor Sales. Now, Press finds himself in Detroit, delivering the kind of marketing plan that might have gotten him bounced from Toyota.
"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," he said in the release.
No, this is not something Toyota has ever done, or, according to a spokesman, plans to do.
Even rival Ford Motor Co. (F:8.20, -0.07, -0.8%) , which has offered similar plans on a regional basis during gas price spikes in the past, said through a spokesman that it's more focused on improving fuel economy this time around and is not considering gas-card promotions.
As for Toyota (TM:) , the Japanese automaker is on pace to dethrone General Motors (GM:) as the world's biggest automaker thanks to its perception as the leader in quality, reliability and, of course, environmentally-friendly cars and trucks.
Chrysler can't buy that by bribing customers with cheaper gas. To be fair, Chrysler and its giant hedge fund owner seem to know this.
That's why Chrysler's "Let's Refuel America" press release included examples of the company's growing line of fuel-efficient vehicles: Two new hybrid SUVs this fall and a hybrid version of its flagship Dodge Ram pickup in 2010. Chrysler even threw in its support of the federal government's "dramatically increased" fuel economy standards.
But they also know they need to find a way to convince consumers to find their way to the nearest Chrysler dealership. It remains to be seen whether this gas subsidy will help.
Or if it will just serve as yet another of Detroit's many miscues.
Shawn Langlois is a reporter for MarketWatch, and the editor of its community message boards.
