Soaring gas prices have forced many Americans to shy away from traditional favorites like pickup trucks and SUVs that seem to consume gas the way desert camels gulp water in favor of smaller more fuel efficient cars. As a result, sales for trucks and SUVs have plunged by 25%.
One of the hardest hit companies with the shift in demand for smaller cars was Chrysler. Its U.S. sales dropped by 23% last April. The company, like auto giants GM and Ford, enjoys a large portion of profit from the SUV and light truck category. The decrease in marketability of such products also means a decrease in profit.
Although America’s Big Three do have some compact car models that have sold well the previous month, the lack of variety in the small car category doesn’t quite stand up against the abundant offering of Asian car manufacturers who seem to cope better with the oil price hike than American car makers.
With gas prices expected to remain high the coming years, American car manufacturers face the risk of further sales drop in the coming months.
In an attempt to induce more sales, Chrysler launched a new campaign with its “Let’s Refuel America” program. The campaign allows car buyers to avail of a gas card that secures gas prices at $2.99 per gallon for the next three years. The company deems the program as protection for Americans from any event of further oil price hikes.
The gas card will be available at 3,511 U.S. Chrysler, Jeep and Dodge dealerships throughout the country. The car products included in the program range from compacts, crossovers, minivans as well as diesel pickup trucks.
The program only lasts until June 2, 2008. To have access to fuel worth $2.99 per gallon, a person must be willing to purchase Chrysler LLC owned production cars within the month.