Proof that promotions don’t make for a desirable product, Chrysler ’s $2.99 gas promotion is failing to bolster sales for the Auburn Hills-based automaker. The promotion has actually increased traffic to Chrysler’s showrooms and websites, but has failed to convince buyers to lay down any cash on a Chrysler vehicle.
The promotion began on May 5, but Chrysler ’s sales were down 25.4 percent in May — far outpacing the industry-wide downturn of 7.4 percent.
Analysts feel that Chrysler’s heavy reliance on trucks and SUVs — which make up 70 percent of the automaker’s lineup — and lack of small, fuel efficient vehicles, really hurt the automaker’s May sales. “Chrysler for such a long time built its brand image around high performance, high power and Hemi engines, and now things have shifted away from that,” Jessica Caldwell, an analyst at Edmunds, told The Detroit News. Despite the gas incentive, “(Chrysler doesn’t) have product to attract buyers.”
Despite the drop in sales, Chrysler contends that the promotion has been a success because of the increased showroom and Internet traffic. Chrysler has also announced that the $2.99 gas deal will be extended through July 7.
