Chrysler refuels gas guarantee promotion for another month

Chrysler's $2.99 gas guarantee program may have met with some controversy early on, but customers are apparently paying attention. The program, which is essentially a creative way to bundle Chrysler's incentive money, is being extended until July 7.

Chrysler says that after one week, its Web site received 25 percent more hits than in the week before. The program has been especially successful in states like California and Connecticut, which have some of the highest prices in the nation.

Eligible vehicles for the Let's Refuel America program include most Chrysler, Dodge, and Jeep vehicles except for SRT vehicles, the Dodge Viper, Dodge Challenger, Dodge Sprinter, Dodge Ram Chassis Cab, Jeep Wrangler, and Chrysler Crossfire. Customers ready to commit to at new Chrysler vehicle must choose between three different incentive options: cash back, 0 percent financing for eligible customers, or the gas guarantee program which, on certain vehicles, includes up to $3000 cash back.

The plan locks in the $2.99 per gallon of gas for up to 36,000 miles in three years. The 15 to 20 percent of customers expected to choose the gas guarantee get a gas card linked to their Visa or MasterCard that is accepted at 97 percent of all gas stations in the U.S. When customers slide in their gas card, the full purchase price will be charged, but Chrysler will pay for every cent above $2.99 per gallon.

The program was set in motion in February by Chrysler dealer sales, finance, and insurance managers divided into two groups to brainstorm creative ways to repackage incentives. A dedicated group of 35-40 people met to overcome all the speed bumps along the way, from ensuring that the gas cards aren't hackable to finding the best balance between the gas guarantee and other incentives.

The national advertising campaign launches today, but already some dealerships are reporting a spike on showroom traffic. With Chrysler sales down 23.5 percent in April, we won't be surprised if (when?) the company extends the promotion for a third month.

Source: Chrysler and Automotive News (Subscription required)