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Chrysler has promised that they are working on green cars and advanced technology vehicles, but I simply don't see it. While GM is promising an gas-electric car with a 40 mile EV range, Toyota is planning on launching an even-more-efficient Prius, and VW seems to have a 200 MPG two-seater in the works, Chrysler is solving its customers' fuel-cost concerns by trying to help them ignore the problem.
Chrysler has just announced that, instead of making its vehicles more efficient (thus saving customers money) they're simply going to charge more for their large trucks, and use the money to artificially deflate customers gas prices to $2.99 per gallon for three years after purchase. And then, surprise, unlike efficiency gains, the well suddenly runs dry and vehicle owners are stuck with a car that neither they, nor anyone else, wants, in a world where gas costs, at best, more than $4 per gallon.
Of course, Chrysler should be worried. A great deal of its business in its Dodge and Jeep brands are SUVs and large trucks, and SUV sales are not doing well. SUV sales for the month of April are down 33% from last year. That's a HUGE drop, especially when so much of Chrysler's profit comes from these high-markup vehicles.
Not only is this a bad deal for the environment, it turns out its a bad deal for consumers too. The $2.99 offer only comes at the expense of giving up other incentives. And while the program will only ever save consumers about $1,200, the straight-cash incentives on the RAM and Durango are currently about $5,000.
Of course, this is all ignoring how extremely short-sighted this policy is. A measly 3 MPG gain would save consumers far more money than the $2.99 deal, while also decreasing demand for oil and emissions of CO2.
But Chrysler, apparently, would rather remain technologically stagnant. Should we let people pretend like oil prices will never rise again? Or should we actualy do something about the increased demand for gasoline, and skyrocketing levels of CO2 in the atmosphere. You know where my vote lies.
The good news is that a similar program from GM a few years back (promising everlasting $1.99 gas) was a complete flop. Not only did they catch a nationwide PR backlash, as Chrysler now seems to be experiencing, but they also saw no increase in sales of large trucks and SUVs.
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written by Enrique, May 08, 2008
Chrysler is done as a viable company. By July 4, the price of gasoline will be $5.00 per gallon and the dealers won't accept SUv'S as trade in.
GM already closed one plant dedicated to producing SUV'S.
GM already closed one plant dedicated to producing SUV'S.
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written by Kamil, May 08, 2008
Everything works in cycles; economy, trends, star popularity, Rome dominance, energy sources etc...as hard as it is to believe sometimes companies even as big and as dominant at one point as Chrysler need to die-off in order for the industry and innovation to be reborn. US is struggling because we have lived in ignorance and for lack of a better word we became lazy. It was easy for us to compete in the world that was either fighting each other or was closed-off to everyone. Now that Europe is united, South America is fed-up with the scraps of our table, Russia is rebranding itself, India is modernizing and China is becoming a next superpower our competition for being a market leader is further decreasing. In the next decades we will truly have to rebrand ourselves and rethink our position in the world if we don’t want to exist only in the memories of the good old days.
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written by James, May 08, 2008
American car companies employ Americans, and for a long time America has been in love with big, fast cars, so it's no surprise that big cars are dying a slow death. We are in the midst of a radical paradigm shift, one which is rearranging the American way of life right before our eyes. Simple things like my sister starting a new job which is only 7 miles away, not 56, or me riding my bike 4 times a week to get to my desination instead of 0 times a week. I know we are not isolated cases, and my sister could hardly be called an environmentalist.
I'm probably in the minority, but I'm happy to see high-priced gasoline. We didn't learn the lesson in the seventies and this is the only way we will invest in alternative energy, so I'm more than happy to suffer a couple of years while we move into a cleaner, more efficient future.
I'm probably in the minority, but I'm happy to see high-priced gasoline. We didn't learn the lesson in the seventies and this is the only way we will invest in alternative energy, so I'm more than happy to suffer a couple of years while we move into a cleaner, more efficient future.
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written by Dave, May 08, 2008
Wow, I am so glad this website exists so that people like this insightful author can write brilliant and well-researched articles for the ignorant masses! I'm glad you can make this proclomation that Chrylser is "short-sighted" because they came up with this promotion. Maybe one day super ignorant people like yourself will one day understand how busness works, esp. the auto industry. It takes at least 4 years of development for an automobile to go from drawing board to show room, most likely 5 or 6 years. Chrylser's business plan was to produce great profitably SUVs and trucks for their customers, and 5 or so years ago, when they're current line-up was being designed, there was a still growing demand for trucks. Unfortunately they did not forsee such a large jump in gasoline prices, resulting in a shift in consumer preferences towards smaller cars. The result was a huge inventory of gas-guzzling trucks that need to be sold. They're answer? This current pomotion. They are currently developing many different smaller-more fuel-efficient automobiles, but they wont be on lots for another few years. And I'm sure you all drool over Japanese automakers like Toyota and Honda because you ignorantly think they care about the environment. Those companies believed there would be a growing demand for smaller cars, so they build those. When those cars first came out, no1 wanted them. As a matter of fact, Honda made a hybrid Accord, but no1 bought it, so they stopped making it. So please learn a couple of things about the world before you get back up on your high horse and waft in those rose smelling farts you let the world enjoy.
Yours in Christ,
Dave, from Detroit of course.
Yours in Christ,
Dave, from Detroit of course.
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written by Jeff, May 08, 2008
Why not do some research about your subject?
I looked into this program that they are offering and depending on gas prices a person could save a bunch of money. If gas stays where it is at then the savings on the Dodge truck which you mention would be approximately $5000 (2400 gallons alloted x $0.80 difference in fuel versus $2.99 plus the $3000 additional rebate that comes with this program that you did not mention). I wonder how you did the math on this. Obviously it is not your strong area.
So if gas prices stay where they are at then it equals the saem savings of the current rebates, which you can choose in place of the refuel program. If the price of fuel goes up then the people who choose the fuel program will really make out.
I also did a simple Google search on Chrysler and found that they have been working on Green and alternative fuel vehicles for quite some time. In fact it seems that they have a Hybrid large SUV coming out later this year.
I assume that most of the people who follow your articles drive the Prius. have you ever done any research on the damage done to the environment just in manufacturing those batteries does? Do it and you will find that they are one of the least "green" vehicle out there. You are better off driving a full size truck.
I looked into this program that they are offering and depending on gas prices a person could save a bunch of money. If gas stays where it is at then the savings on the Dodge truck which you mention would be approximately $5000 (2400 gallons alloted x $0.80 difference in fuel versus $2.99 plus the $3000 additional rebate that comes with this program that you did not mention). I wonder how you did the math on this. Obviously it is not your strong area.
So if gas prices stay where they are at then it equals the saem savings of the current rebates, which you can choose in place of the refuel program. If the price of fuel goes up then the people who choose the fuel program will really make out.
I also did a simple Google search on Chrysler and found that they have been working on Green and alternative fuel vehicles for quite some time. In fact it seems that they have a Hybrid large SUV coming out later this year.
I assume that most of the people who follow your articles drive the Prius. have you ever done any research on the damage done to the environment just in manufacturing those batteries does? Do it and you will find that they are one of the least "green" vehicle out there. You are better off driving a full size truck.
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written by MK, May 08, 2008
Dear EG,
let's not overreact here. The powertrain and alternative propulsion developments at all auto companies are not an overnight process. And all auto companies are working to improve fuel economy. In the meantime, it's the here and now, Chrysler is simply offering an alternative to customers. If a customer has an outlook that gas prices will increase, and they have a risk aversion to that increase, then Chrysler has provided them a unique,creative, and legitimate program.
let's not overreact here. The powertrain and alternative propulsion developments at all auto companies are not an overnight process. And all auto companies are working to improve fuel economy. In the meantime, it's the here and now, Chrysler is simply offering an alternative to customers. If a customer has an outlook that gas prices will increase, and they have a risk aversion to that increase, then Chrysler has provided them a unique,creative, and legitimate program.
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written by Josh, May 09, 2008
It should be noted that this promotion does cover their more fuel-efficient vehicles. Their Avenger and Sebring, for example, have just about the same fuel economy as Camry's and Accords.
They obviously want to get rid of the big trucks but they're not excluding the smaller ones.
They obviously want to get rid of the big trucks but they're not excluding the smaller ones.
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written by Edouard, May 09, 2008
It is simply amazing for such a large company to come up with such a solution for such a problem.
I mean, give me one reason why oil prices will drop ? There is none, and believe me I looked for it during two years.
Instead, oil prices increase by $10 a barrel every two months. Their idea won't work at all. :(
I mean, give me one reason why oil prices will drop ? There is none, and believe me I looked for it during two years.
Instead, oil prices increase by $10 a barrel every two months. Their idea won't work at all. :(
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written by Simon, May 09, 2008
...in a world where gas costs, at best, more than $4 per gallon.People in Sweden already today pay $8,48 (around 52 Swedish Kronor) for one gallon of gasoline (4 litres). It's time that the American car-fetish dream started to cost its true value.
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written by Brian Sanchez, May 09, 2008
It is a desperation move for a desperate company, just look at websites like this one below. People are fed up with Chrysler and Chrysler has been losing business at a rapid rate, which is one of the reasons the company was dumped by Daimler. Just do a search for chrysler or dodge problems on google.
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written by Sick of Trolls, May 11, 2008
In response to 'Dave in Christ' :- If Chrysler wasnt short sighted in their product development- what was Honda and Toyota thinking 7 years ago with their hybrids? Just got lucky? The Honda Accord hybrid never took off simply because the electric motor was used to increase horsepower rather than increase gas mileage. The Hybrid Civic has been a success. As have other small cars from Honda and Toyota for years! The US new vehicle market is the only one in love with the SUV's and that market isnt growing like the global market has. Gas prices and peak oil have been a concern for years now- and its become a huge story the last 2 years. Large companies have departments set up to predict the future market so they dont get caught- but for whatever reason the US car manufacturers have been slow to adapt- probably thinking the US gov. will just bail them out (or just invade another oil producer in order to keep oil prices low and the economy chugging along) ;D
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written by Malcolm Brooks, May 13, 2008
I leased a 2008 Jeep® Grand Cherokee with a V6 in Jan because I got an amazing deal from a friend who owns a dealership. I try to live my life as green as possible and own a home with thermal solar panels and other green features. Living on Nantucket Island, MA a 4x4 really helps get around the island. There is a lot of stop and go driving out here as there are no highways and no speed limits any faster then 45mph. After my first tank of gas in the truck and getting 11mpg my love of the vehicle diminished... we also have the highest gas prices in the country out here with reg at $4.65 gal. Makes me sick to my stomach that a new Jeep® gets such terrible gas mileage!! Luckily I only drive about 3000 miles a year out here. Im planning on getting an electric car or having a veggie vehicle in the future and which could be perfect for the island. As for Jeep®/Chrysler SHAME ON YOU for making such a gas hog!! As for me I feel stupid leasing it.
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written by BillinDetroit, May 21, 2008
The difference for me between a $30,000 SUV and a $5,000 Geo Metro is the difference between my writing a check or not. (I will always remember getting 52 mpg on my first long trip in my Metro. Great car. Shame on Chevy for dropping it.)
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written by Patrick, June 12, 2008
While Hank was ragging Chrysler for improvements he said I quote him I DON'T SEE IT. This fall the New Dodge Ram will match Toyota's 5.7 in power with their 5.7. Difference is Toyota will get you about 19 mpg Highway and the Ram 23 MPG Highway. Top of the class. The New V6 Coming soon from Chrysler will be top notch as well. Expect Chrysler Minivans fuel economy to Improve for both the V6 Option as well as the 2.4 ltr 4 cylinder. While you glorify the Prius remember most customers wont keep that car long enough to pay for the 7,000 hybrid option. For most that's 7,000 plus finance charges which equal about 11,000. Hybrids are just a bunch of hype. New Cleaner Diesel Technology, Improved Transmissions and Areodynamics are much more logical and less costly. Diesels have low maintenance cost. How expensive will repair be on a hybrid? You probably don't want to know. The only place that will service them even out of Warranty is the Dealer. Expect about 100.00 per hour labor and expensive parts.
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