Autoblog

We knew critics of Chrysler's $2.99 Gas Guarantee would crawl out of the woodwork before too long, and here they come. Automotive News reports that The Union of Concerned Scientists has called Chrysler's program a "cynical deal", noting that at today's current average price of $3.61/gallon, a customer would save about $400 a year under Chrysler's program. Being the smart folk they are, the scientists also pointed out that customers could save the same amount from a 3 mpg bump in fuel economy over 15,000 miles or a year of driving, and that better fuel economy also continues saving the customer money after three years. Damn, scientists are so smart with the math.

The criticism hasn't stopped Suzuki, however, from announcing its own free gas deal. For vehicles purchased between May 1st and June 30th, Suzuki is offering 0% financing and three months of totally free fuel in its "Free Gas for Summer" program. Buyers will basically get a stored-value credit card that's charged with a different amount of money depending on the model purchased.

These incentive programs are nothing but promotions designed to grab headlines and make buyers feel like they're getting more money back than they actually are. Playing off the media's hysteria over high gas prices, Chrysler (and Suzuki) is betting buyers will feel that paying $2.99/gallon for three years is more valuable than a $2,000 cash back rebate. Trust the math, it's really not. Nevertheless, it will likely sell more Chrysler, Dodge and Jeep vehicles than a boring $2,000 rebate would.

[Source: Automotive News – sub. req'd]

The Southern California Honda Dealers Association is trying some friendly, if a bit odd, tactics to sell more new cars. Dealers in the group are sending out its employees in blue Honda shirts to carry groceries, pump free gas and hand out complimentary popcorn at theaters. Pasadena drivers were even treated to free parking, when one street's parking meters were covered in blue hoods that said, "It's on us," and "Helpful Honda."

The L.A. Times' story says the helpful Honda employees aren't trying to sell cars and don't even mention their employer or their reasons for helping. Honda hopes those who receive assistance say to themselves, "That was nice of Honda. Now, what has MY car's company done for me lately?"

While the story doesn't cite any numbers to indicate whether the five-month-old campaign is working, the reporter witnessed at least one free gas recipient vow to buy a Honda next time. We've definitely seen crazier things for a free tank.

[Source: The L.A. Times]

If you live in Sioux Falls, today's your lucky day. Allstate Insurance is going to buy residents of the South Dakota city a free tank of gas for being the safest drivers in the country. The second annual Allstate America's Best Drivers Report has been released and the residents of Sioux Falls were found to experience a traffic accident once every 13.7 years on average. The national average for a city is one accident every 10 years. This means Sioux Falls residents are 27.2% less likely to bump fenders than the national average. This is the second year Sioux Falls has been named the city with the safest drivers, having earned the report's inaugural top spot last year, too.

ABC News reports that Allstate expects to fill up 700 gas tanks in Sioux Falls with nature's combustible cocktail, though that estimate might be a little low considering the city's population is estimated to be 123,975 according to the 2000 U.S. Census.

[Source: ABC News]

More than 200,000 happy U.S. motorists will be awarded free gasoline by Shell Oil as part of a promotional contest launched Monday. Shell will give away more than $2 million in free gas and instant-win prizes, including six grand prizes of - wait for it - a lifetime supply of free gasoline! Hundreds of thousands of other winners will walk away with $10 Shell Gas Cards.

The 'lifetime' prize isn't entirely open-ended - winners actually get 302 $300 Shell Gas Cards, based on 50 years of driving 13,500 miles/year and consuming 675 gallons a year.

"Scratch and Win" game cards are available at Shell outlets through October 1, and even if you don't win, it's not a total loss - each game card features a money-saving fuel tip to improve your fuel efficiency. Follow the "Read" link for full contest details.

[Source: Shell Oil]

Meanwhile, Ford is once again following GM's lead by offering a similar incentive program at the center of which is the current high price of gas. FoMoCo has launched a nationwide "Drive on Us" sales incentive program, offering not only zero percent financing but free gas for the rest of the year for new vehicles purchased between today and July 31.

With every sale, customers get a pre-paid MasterCard debit card to buy up to $1,000 of gas, E-85 or diesel. (Thirstier trucks and SUVs get $1,100 in fuel credits) Customers can choose to get cash or a deduction from the purchase price of the vehicle.

In addition, some models get a price reduction ("customer cash" in Ford-speak) of an additional $1,000 to $4,000. The $4,000 deduction is reserved for the slow-selling Expedition (along with zero percent financing up to 72 months!), and there are some good deals on trucks, with the F-150 getting a $2,500 price break and the Super Duty knocked down $2,000.

[Source: Ford]

New York Times columnist Thomas Friedman wrote an op-ed piece on Wednesday that absolutely blasted General Motors for its "Fuel Price Protection Program" in which California and Florida customers are being reimbursed for the cost of gas above $1.99/gallon for one year. Some more colorful quotes from Friedman's article include, "Is there a company more dangerous to America's future than General Motors?", as well as comparing the company to "a crack dealer looking to keep his addicts on a tight leash."

GM's product czar and media wrangler Bob Lutz takes Friedman's harshly worded editorial to task on GM's FastLane Blog pointing out that Toyota offers a larger $2,000 cash rebate on the Sequoia, which actually gets worse mileage than the Tahoe. He also points out the General's recent push into E85 territory, its industry-leading lineup of 30 mpg or better vehicles, and its commitment to hydrogen fuel cell R&D.

Lutz is at the top of his game, however, when he points out that for all the credit Toyota receives for its Prius hybrid, the Japanese company's growth over the past ten years has been fueled mainly by its expansion into truck and SUV segments. But he gets back on Toyota's good side by saying, "Don't get me wrong. Toyota's a fine company. But like GM, Toyota offers a full range of cars and trucks to satisfy all their customers across this nation."

A full range of vehicles will always include ones that get worse mileage than others, and usually the less efficient of the bunch will be trucks and SUVs. It appears to us that GM is putting the most effort into making its full-size trucks and SUVs as efficient as possible without sacrificing their purpose. For all the GM bashing we're accused of here on Autoblog, we stand with Bob on this one.

[Source: The Detroit News and GM FastLane Blog]

CORRECTION: Umm... yeah, so the editorial on GM's FastLane Blog wasn't written by Mr. Lutz but by by Steven J. Harris,
Vice President of Global Communications GM. Don't know how we missed that one, except the tone of the commentary matches some past fumings from Bob so much we just assumed, and that made an ass out of us, not  you.