Aiming to capitalize on consumer angst about the high cost of gasoline, General Motors Corp. on Tuesday said it will cap pump prices at $1.99 per gallon for customers in California and Florida who buy certain vehicles by July 5th of this year.
One hitch to the promotion is that customers also must agree to enroll in the OnStar vehicle diagnostic service, which is free for the first year but after that will cost $16.95 a month. The other is that many of the eligible vehicles are serious gas guzzlers.
2007 GMC Yukon
The offer is good for 2006 and 2007 model year vehicles. In California, eligible vehicles are the Chevrolet Tahoe and Suburban sport utility vehicles and Impala and Monte Carlo sedans; the GMC Yukon and Yukon XL SUVs; the Hummer H2 and H3 SUVs; the Cadillac SRX SUV; and the Pontiac Grand Prix and Buick LaCrosse sedans. In Florida, eligible vehicles are the Impala, Monte Carlo, Grand Prix and LaCrosse.
Customers must buy or lease an eligible vehicle between Thursday and July 5 and enroll in the OnStar diagnostic service, which automatically runs checks on the vehicle and sends e-mail notices to owners each month. Each month for one year, GM will give drivers a credit on a prepaid card based on their estimated fuel use, which will be calculated by the miles they drive, as recorded by OnStar, and the vehicle's fuel economy rating.
2006 Cadillac SRX
GM will credit drivers the difference between the average price per gallon in their state and the $1.99 cap. The credits can be used through December 2007. Consumers won't get any credits if gas prices fall below $1.99. GM said a California resident who buys a 2007 Chevrolet Tahoe and drives 1,000 miles per month would get an estimated $103.75 monthly credit, based on the current average premium fuel price of $3.65 per gallon.
A Florida resident who drives a 2006 Buick LaCrosse about 1,000 miles per month would get an estimated monthly credit of $60, based on the current regular fuel price of $3.19.
GM spokeswoman Deborah Silverman said GM picked California and Florida in part because the company wants to increase sales in those states.
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