My East Ky

Not sure if this is a very smart move or one of the dumbest moves ever? But Chrysler is offering to pay the difference on gas for the next 3 years for anything over $2.99 a gallon (with a 12,000 mile limit) if you purchase a new vehicle from them. You will be able to purchase 428.5 gallons of gas ( a year) @ $2.99 a gallon. So if gas goes to $4.59 a gallon you will only pay $2.99 and Chrysler will pick up the remaining $1.60 a gallon. No telling how much this could end up costing the automaker in the end. Especially since there seems to be no end to the rising fuel cost.

And yes gas went up again today $3.75 throughout Pikeville. Let s do a little math; let’s take the full amount that you can get per year 428.5 gallons of gas @ $3.75 a gallon. That’s $1,606.87, with the above incentive you could save $325.66 with Chrysler picking the tab for the 0.76 cent difference and only pay $1281.21. But let’s say gas goes to $5.00 a gallon (and I don’t think that’s too farfetched) you could end up saving $861.28. In 2005 Chrysler sold 2.4 million vehicles and let’s say only 25% (600,000) take the $2.99 a gallon gas incentive (up to 428.5 gallons a year) @ $3.75 a gallon ( Chrysler picks up the remaining 0.76 cent difference) that could end up costing the company $195,396,000.

$3.79 - $2.99 = 0.76

600,000 x 428.5 = 257,100,000 *gallons of gas Chrysler buys*

257100000 x 0.76 = $195,369,000

Wow I hope that’s right.

Anyway here’s a link to the full article.