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$2.99 gas promotion failing to seal the deal at Chrysler dealerships

06/05/2008, 10:36 AM

By Drew Johnson

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.

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06/05, 10:38 AM

posted by:

tripleonefive

Unless Chrysler makes a better product or offers 99cent gas they arent going to put asses in the seats of their cars

06/05, 10:42 AM

posted by:

HemiRoadRunner

“(Chrysler doesn’t) have product to attract buyers.” Hmmmmm, I’m attracted to the new Challenger. I agree they need some fuel efficient cars in there somewhere, but I’m glad I still have the option to buy a new muscle car.

06/05, 10:47 AM

posted by:

Astonman12

the Chrysler bashers will be flocking to this article. Come on, where are they? Let’s hear it.

06/05, 10:51 AM

posted by:

livelyjay

So you get $1 discount (locally regular gas is $3.99) on gas for I think it’s 12000 miles per year, for three years. Let’s just say you get an average of 20mpg (a fair assumption for Chrysler/Dodge), that’s only $1800 for the lifetime of the offer. From what I heard on the radio the offer is not combinable with any other offer. It’s a decent offer if they don’t offer cash back on the vehicles, but most of their vehicles have a cash back offer of more than $2000. Plus the hassle of getting the credit card, all the paper work that must be involved, I can understand why people aren’t flocking to Chrysler dealerships (among other reasons).

06/05, 10:59 AM

posted by:

mayer_ray_nagin

Problem is this incentive is worth a lot less when you have people switching to cars. It’s limited to 12000 miles/year at average mpg, so when you get a get people looking at a car that gets 25mpg, the incentive is worth $480/year for a year or 2, or $40/month. No one is going to get a hard-on for $40/month, and people who are looking at trucks are more brand loyal so although the incentive might be worth $75/month to them they generally won’t care. Besides, that $40 or $75 won’t offset the additional depreciation hit you take for buying the Chrysler, nor will it offset the additional cost of having to buy hookers because no normal chick will even look at you if you drive a Sebring.

06/05, 11:11 AM

posted by:

Fletch

The problem is Chrysler cars blow.

06/05, 11:31 AM

posted by:

F451

It is not Chrysler that is the problem it is the companies who have bought it, like Cyberus, and the people who run it, like Nardelli, who have done Chrysler in.

06/05, 11:34 AM

posted by:

johnnycanuck

I really don’t understand why they didn’t apply this offer across the board. What possible difference would it have made to include SRTs, Vipers etc.

06/05, 11:38 AM

posted by:

HoosierHero

They aren’t going to offer it for SRTs, Vipers, etc. because that’s a small niche market. People who buy Vipers don’t care about $4 gas, and will buy regardless. They also make up a small total percentage of Chrysler’s business. They need to grab the masses, who thank to Bush, are struggling to even keep their $20k cars running.

06/05, 11:45 AM

posted by:

Supermann1

Aye Hemi, its ok to cry on the inside lol.

06/05, 1:02 PM

posted by:

xyunya

I hoped that campaign will help Chrysler to place asses in their cars. I agree, that there are not so many models to fill. Except Caliber there is nothing new and I am surprised that Calibers don’t sell better then they are. On paper their engines look very good and Mitsubishi is using same engines in their cars, so I expect decent NVH characteristics. PT Cruiser is old and may sell better if Chrysler would put a newer engine inside, instead of age old one. I cant even mention other cars in lineup they are so rare on the road.

06/05, 1:12 PM

posted by:

nitinsharma1000

If a car company is thinking of features like the digital pic viewer on the nav screen and have a commercial on national TV about it, they are really desparate.

HRR i like the Challenger too, but the interior is horrible considering how amazing the car looks on the outside. Now the camaro is nice inside and out. And the Z28 is gonna be awesome. Even tho im an import guy.

06/05, 2:40 PM

posted by:

TomF

F451: Cerberus and Nardelli haven’t had time to do Chrysler in. They’ve been in there less than two years. The mess of ill-conceived, irrelevant, obsolete products in showrooms today was set up long before Cerberus and it can’t be changed overnight. Give ‘em credit for trying to do something different to move what they KNOW is a kennel full of dogs.

A lot of automakers acted like $2.00 gas would be around forever. It’s just that Chrysler placed a bigger bet than most with that whole “Yeah, it’s got a hemi” marketing line. At $4,75 a gallon that hemi’s a friggin’ boulder around most drivers’ necks.

06/05, 2:44 PM

posted by:

bolex

cerberus is doing a good job – so far. these insane promotions (2.99 gas, lifetime warranty..) tells me cerberus acknowledges that the line up needs to be revamped and shows effort while restrucurting. what cerberus has implemented in the last year is more than alot of companies have done in the last 10 years. bring on the ‘no nothing’ Chrysler bashers….

06/05, 3:33 PM

posted by:

pmpvtkc

When a car company like this offers $2.99 per gallon, they are saying “we know our cars suck at gas mileage, and we need to revamp our lineup but for now we are offering this hoping you would buy our cars!”

After all, Inspiration Comes Standard doesn’t sell.

06/05, 4:47 PM

posted by:

olds307

The original Neon was a great economy car, superior to any of the other small cars available at the time it debuted. While the other automakers caught up, Chrysler came out with the 2nd generation Neon, that lost the spirit of the first, along with losing the 2 door model, and became basically ‘me too’ car that only served to show how good the original actually was.

06/05, 5:03 PM

posted by:

johnnycanuck

I have a mint ‘95 DOHC Coupe olds307. It still runs rings around most of today’s small cars.

06/05, 5:17 PM

posted by:

stick2clutch

DAMN… The U.S. needs to start drilling. Even if it is just a bluff congress should say that they will start drilling and do the world a favor. The very next day the price will drop dramatically.

06/05, 5:20 PM

posted by:

S-60-driver

NO NO NO NO, all of you are wrong. The article didnt show the whole thing. I read this same article from other sources and it was longer.

…….The reason for this promotion is NOT working because you have to GIVE UP all the rebates and 0% finacing if you want the $2.99 card. That means, higher lease/purchase payments!!!

Chrysler is SOOOOO STUPID!!!!

06/06, 6:55 AM

posted by:

jayjc08

Maybe their getting more traffic because of the controversial nature of this little card. I know when I heard about it, I checked it really quick.

Olds307- I’m sorry, but the Neon hands down was never a good car. Reliability problems, horrible interior, bad paint and trim, never sold like the Cavalier or Focus. The Cavalier was a much better car although nothing to brag about, but from the Big Three the Focus was by far, the best, however late.

06/06, 9:27 AM

posted by:

Timellini

I guess that offer would work better where I live. With today’s price and EURO/USD rate my gas cost a bit over 9 bucks a gallon.

06/07, 1:13 AM

posted by:

The Stig

Chrysler sucks big time.

06/07, 4:02 PM

posted by:

beantownslut

I’d rather pay the real price — $3.97 — and drive my Ford.

06/07, 7:10 PM

posted by:

DialM4Speed

The only ugly cars Chrysler makes are the Challenger, Caliber, and Nitro. The Aspen and Commander aren’t bad looking but have to go due to the price of gas. As for interiors… ****! That’s all you clowns cry about! Who gives a ****? Hyundai’s entire cars are cheat **** yet they sell. Unless your buying a luxury sled all the interiors are pretty much the same.

06/07, 10:47 PM

posted by:

NoNameDenton1

The Challenger is not bad looking, just retro. Hyundai may make cars that undersell their competition, but they drive well and are crammed with standard features and good safety features too.

06/08, 1:07 AM

posted by:

Impulsive

When did you become Hyundai’s ad agency, fool? He has an opinion and he made it … why in **** are you trying to convince him of what is general knowledge … you forgot to mention there’s a carpet inside and glass all around … ****ing tool.

06/08, 12:20 PM

posted by:

NoNameDenton1

As I have posted before, you have issues Impulsive. He stated an opinion, and I stated mine, or are you attacking me for having an opinion?

06/08, 11:32 PM

posted by:

Impulsive

Read the post again, dufus … nothing you posted was worth anything … he already knows what he posted was wrong, just hperbole, but you have to respond with a faggoty, commercial-like defense … get a life.

06/08, 11:42 PM

posted by:

NoNameDenton1

I have a life, and by the way oh great grammar police, you spelled hyperbole wrong.

06/09, 12:38 AM

posted by:

Impulsive

ooops, first typing mistake in three years … forgive me … I never thought a monkey would EVER realize. Keep up the commercials, chimp.

06/09, 6:04 PM

posted by:

NoNameDenton1

Keep up calling people monkies, how sad, too busy insulting people on here to look up new insults.

06/09, 6:39 PM

posted by:

Impulsive

No, just stating FACTS … in addition to the FACT that you are illiterate. You see them as insults, when they are in fact FACTS.

 
 
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