New gimmick by GM

GM is offering $1,000 fuel card when a customer buys any new 2006 or 07 Chevy or GMC FFV in the Chicago-Rockford (there are only two Ethanol gas stations here) and Minneapolis-St. Paul markets between 2 May and 31 July 2006. But here comes the best part, based on fuel price of $ 2.91 per gallon of gasoline and $2.41 per gallon of E85 (current estimates from the DOE), the $1,000 card would provide about 5,400 miles of driving on E85 in a Tahoe, and about 5,800 miles of driving on gasoline. (The Tahoe is rated at 13 mpg on E85, 17 mpg on gasoline.) Some of these monsters come with 31 gallon tanks (such as the Yukon XL) and with gas currently retailing anywhere between 2.75 – 2.99, that could cost about $85 (@ 2.75) everytime you topped it off with regular gas. That free fuel card could vanish in about 11 refills, with E85 2 additional refills at the best, then what.
Who are these guys at GM trying to hoodwink? So the clones at GM think that if people do not go for the $1K rebate idea, then just by changing the wording such as rebate into fuel card, customers will fall for it. DO NOT FALL FOR THIS MARKETING STUNT FOLKS. A $1000 worth of free gas on one of these gas guzzling giants will end up costing you more over the years, probably to the point where you have spent more money on gas than on the car payments. Kudos to the marketing strategist who came up with this brilliant idea (for those people at GM who did not get it, I am being sarcastic).
Source: www.greencarcongress.com

This entry was posted in Flex Fuel Vehicles (FFV) on by .

About g2

Born and brought up in India. Went to St. Xavier's in Calcutta, Richmond University in London & McGill in Canada. Trained in clinical and experimental psychology. I have worked with autistic children and I was the Psychologist at the Adult ADHD Clinic at the Montreal Children's Hospital. Currently we are based in Michigan. I love traveling around the world and cooking.

2 thoughts on “New gimmick by GM

  1. drew whikehart

    In your article ANew Gimmick by GM, you neglected to factor in the fact that E85 is approximately $.35 cheaper per gallon, when your were comparing the 13mi/gal on E85 to 17 mi/gal for gasoline. This makes the cost per mi approx the same.

    You need to compare apples with apples!

  2. g2 Post author

    At the time when I had posted this article, E85 was more expensive, I believe up in some place in Rochester Hills a place was asking for $3.99 a gallon. It cost about $2.79 a gallon in July, now its currently between $2.56 & $2.44 a gallon, reg gas is $2.46. If current trends continue reg.gas may be down to $2 a gallon by the end of the year. E85 prices are coming down too, but we need more E85 gas stations.

    So I compared granny smiths with golden delicious.

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