Chrysler’s incentive: two years of free gas

DETROIT — DaimlerChrysler AG’s Chrysler Group said Thursday it will give two years of free gas to customers who buy a 2005 or 2006 vehicle before Jan. 3, following announcements of new discounts by rivals General Motors Corp. and Ford Motor Co.

Chrysler will also kick in two years of free scheduled maintenance and increase the warranty on mechanical parts to five years or 60,000 miles. Chrysler now offers a three-year, 36,000-mile warranty. The offer, called the “Miles of Freedom” plan, begins Monday.

“The combination of free gasoline, free scheduled maintenance and a full warranty puts our customers’ minds at ease and allows them to fully experience the joy of driving one of our vehicles,” said Joe Eberhardt, Chrysler’s executive vice president of global sales, marketing and service.

The company said the free gas will come in the form of a $2,400 debit card that can be used for anything. Alan Helfman, manager of River Oaks Chrysler Jeep in Houston, said the free maintenance is worth $200 to $300 and the extended warranty is worth $600 to $700.

“It’s a great tool for marketing,” Helfman said.

DaimlerChrysler shares rose $2.03, or 4.1 percent, to close at $51.18 Thursday on the New York Stock Exchange

For the rest of November, customers will be able to choose between the new incentive or cash-back plans already in place that expire Nov. 30. Helfman said some customers might still choose the cash, although the new plan could be a better deal. The 2006 Jeep Commander, which starts at $27,290, currently has a $1,500 rebate, Helfman said. Under the new plan, that would double.

Chrysler is excluding some of its hottest-selling vehicles from the plan, including the Dodge Viper, Chrysler 300, Dodge Magnum, Dodge Charger, Dodge Sprinter and SRT8.