Chrysler’s Gas Price Lock: Strategy for Other Businesses?

Some companies are actively searching for the silver lining in depressing economic news and turning American consumer’s frustrations and doubts into an effective marketing campaign. Can other industries take a page from Chrysler’s game book and brew sweet lemonade from sour lemons?

Beginning today and lasting until June 2nd, Chrysler is promoting their newest incentive — Let’s Refuel America, a rather experimental strategy to get you to purchase one of their new automobiles, SUVs, crossovers or trucks.

Under this plan, Chrysler guarantees the price you’ll pay for a gallon of gas at $2.99. Anything above that, they pay for it (within limits and terms, of course). The price guarantee covers an annual allotment of gallons based on 12,000 miles divided by the average mileage per gallon of the vehicle purchased. Thus, as the price of gas increases, so do your savings.

Urban Homebuyers See a Silver Lining?

There was a great story over at NPR this week about consumers who work in major cities flocking back to urban areas to take advantage of shorter commutes (and, thus, less gas consumption — something becoming more and more of a factor), closer amenities such as shopping and cultural attractions and more time-efficient living (imagine — no more mowing that acre of grass every week!).

Urban homebuilders must be delighted to see their average home’s selling price staying stable, if not rising (the NPR story mentioned median home prices in the city actually increasing 3.5% compared to a year ago). It would seem the allure of home “bigger and better” on the outskirts of metropolitan areas have lost their charm in the face of $120/barrel oil and $4 a gallon gas.