lilredranger
It's prolly broke...
- Joined
- May 9, 2008
- Messages
- 17
Now everyone has heard about the 2.99/gallon deal that is being offered if you buy a new chrysler/dodge/jeep. it sounds almost too good to be true. In my studies at school, we have come up with a few theories why this may be
possible:
the first theory, is that we are not in as bad of a situation as we think. with the connections that chrysler has with OPEC, they may know something we don't, i.e. fuel prices will head back down after summer, which is why they are willing to promise 2.99/gal for three years. they may predict that after summer, the prices will be around 2.99/gal keeping them from having to pay any difference in price for the last 2 years. If it really was predicted to be $5+/gal, that would leave huge operating profits minimal for a company that has a horrible track record of bankrupcy and bailouts.
the second is not as reasuring. Just that chrysler uses so much fuel in their testing of vehicles, that OPEC has given them a special bulk pricing, much like over the road truckers enjoy for a few months at a time, where they can lock in a negotiated rate for a period of time. however, to me three years of 2.99/gal if the price really will go up to 5+/gal seems almost unlikely that a profit hungry OPEC would offer. not to mention OPEC hates the U.S. and knows that we are dumb enough to keep buying gas/diesel no matter the price, before taking public transportation. But they do know that the technology is available to create a sustainable renewable energy in vehicles, and may be giving incentive to chrysler NOT to further develop alternative fuels.
Anyones thoughts....? Idea? other theories?
possible:
the first theory, is that we are not in as bad of a situation as we think. with the connections that chrysler has with OPEC, they may know something we don't, i.e. fuel prices will head back down after summer, which is why they are willing to promise 2.99/gal for three years. they may predict that after summer, the prices will be around 2.99/gal keeping them from having to pay any difference in price for the last 2 years. If it really was predicted to be $5+/gal, that would leave huge operating profits minimal for a company that has a horrible track record of bankrupcy and bailouts.
the second is not as reasuring. Just that chrysler uses so much fuel in their testing of vehicles, that OPEC has given them a special bulk pricing, much like over the road truckers enjoy for a few months at a time, where they can lock in a negotiated rate for a period of time. however, to me three years of 2.99/gal if the price really will go up to 5+/gal seems almost unlikely that a profit hungry OPEC would offer. not to mention OPEC hates the U.S. and knows that we are dumb enough to keep buying gas/diesel no matter the price, before taking public transportation. But they do know that the technology is available to create a sustainable renewable energy in vehicles, and may be giving incentive to chrysler NOT to further develop alternative fuels.
Anyones thoughts....? Idea? other theories?
