GM caps gas prices at $1.99

[PsychoBueller]

http://news.yahoo.com/s/ap/20060523/ap_on_...e/gm_gas_rebate

What do you all think. I think it's a cool idea.

[sciguy_0504]

I read a news article about this earlier. I guess it's a good idea but why include all of those vehicles? Limit it to the SUVs.

[-Camaro-]

Too bad it isn't for all GMs 1908 and up and through out the world. :D I see this increasing sales in those states though.

[Northstar]

Hmm, that's a good idea, and it was a good decesion to only make it until 2007.

[pow]

GM shouldn't limit it to just SUVs, IMO, because it only highlights how gas-guzzling they are.

[Mr.Krinkle]

does this target previous customers who might not be so sure if they want the same ol thirsty car they had or do you think its for new customers as an added bonus?

i think its a somewhat good campaign but does anyone think the numbers will justify it or will things remain status quo. id venture to guess thats why its for a limited time at first --just to see how it shakes itself out.

[Sixty8panther]

Hey GM... how about in Mass?

[daves87rs]

GM shouldn't limit it to just SUVs, IMO, because it only highlights how gas-guzzling they are.

If we get a wild increase this year-more than suvs are going to be in danger.

As long as there is a push for E85-GM trucks have a good chance.

I think sales of cars will be fine.......so they do an gas offer on the trucks...

CHeaper gas may be enough for some to buy..for now.

[Newbiewar]

well lets assume someone is going to drive a lot... assumable 30k miles a year(worst case scenario)...

30k miles a year(probably mostly highway)

now they got uintil december of 2007, thats 19 months worth of 30k a year...

lets see... gas right now is 3.30 here in cali...

so...

30,000/12*19=47,500 miles now thats at 22 mpg, but if we combine them... we'll get probably 20mpg (since its mostly highway driving)...

47500miles/20mpg = 2375 * 1.31(because the cap is 1.99 and today gas is 3.30... thats 1.31 away)

3111.25

but the consumer must enroll in the onstar for an additional year, so thats like $199

so this consumer will basically be saving 3111.25-199 = $2912 savings... (worst case scenario assuming gas doesnt go higher)

now assuming the average consumer with 12k miles per year

so we are looking at a total of 19k miles... now lets get probably 18mpg combined...

19000/18 = 1055 * 1.31 = $1382 - 199 = $1183 savings... (standard scenario assuming gas stays at 3.30, if it goes down GM wins, if it goes up customer wins)

so if GM is spending anywhere between $1000-3000... it sounds to me like its acceptable rebate... creative incentives... and gets people to use onstar...

[ToniCipriani]

They should do it for the Cobalts. Then advertise it as:

"If you want to pay less for gas than a Prius, get a Cobalt."

Then people will really know how fuel efficient the Cobalt is.

[pow]

They should do it for the Cobalts. Then advertise it as:

"If you want to pay less for gas than a Prius, get a Cobalt."

Then people will really know how fuel efficient the Cobalt is.

Yeah, 25 MPG city...

[Newbiewar]

Yeah, 25 MPG city... 

depends how you drive... you can get 25mpg in a prius too...

[FUTURE_OF_GM]

Cool program...

And the usual HORRIBLY biased news coverage. ("Gas guzzlers"..... "Rebate".... "The catch" ... etc.. etc...) It's all in the wording.

And no, GM isn't going to give anyone something for nothing like the medi, who hates them in the first place, thinks they should. OF COURSE there's a trade off and OF COURSE there's a reason why it's only offered on select vehicles. This author just exploits that as WEAKNESSES that are NON EXISTENT