Response to Chryslers new Fuel Incentive

Daimler Chrysler offered late last week a new incentive that would help buyers of their vehicles out at the pumps. The offer is that Chrysler would cap the price of fuel to new buyers at 2.99/gal for the next 3 years. There is a 12000 mile limit on this, but no matter how high the cost goes on fuel, Chrysler will flip the difference that the customer isn't paying.

Question, with a company that is more then 12 Billion dollars in debt, how can they afford to make the cars they do, hold up reliability standards (whatever they have in that respect) and make a profit? Business is about making the customer happy, but it wont be a business for long if they cannot turn a profit.

My question is, what are North American car companies doing wrong. The import companies such as Honda and Toyota have no problem selling vast amounts of cars, that are reliable and fuel efficient, and they dont have incentives at all. I own a 2006 Civic Si, my interest rate is around 6%, yet its still cheaper to own then any car GM or Chrysler could sell me. When you factor in actual fuel economy, reliability over the life of the vehicle and cost of ownership itself, you still cant beat an import.

There is no question NA companies try and offer incentives. Gas cards, upgrades, low low finance rates, and even engines that use technology such as Flex Fuel. (It doesn't even work anyways) With all these incentives, why do imports out sell almost every class of vehicle? Even if it is more expensive to own?

I put it down to bad management, false promises and the final product being rubbish. I know a guy who bought a Cobalt SS, the performance model similar to my Civic. The thing is trash, been in the shop 8 times in a year and a half. My car has been in once for a recall.

For Chrysler and GM, they need to start sinking their money into a more reliable product. It cant be impossible, their Asian and European counterparts seem to be able to do it with ease. Instead of fuel incentives such as gas cards, build an engine that is efficient. Instead of 40 year warranties, build a vehicle that will last 10 years with no major problems.

Until they stop throwing Hemi's and coolers into cars, it wont happen. But then again, this is why these companies have no pot to piss in.