Saturday, June 14, 2008

Dodge's gasoline price lock

Other than probably being bad for the environment by convincing people that gasoline can be consumed like candy, Dodge's gasoline price lock may also make Dodge go broke.

Sure if gas hovers around $5 a gallon it could be alright, but if gas heads up closer to $10 a gallon that is a lot of money that will start hemorrhaging out of the company. I did a little calculation, and assuming 30 mpg (which is high for Dodge) that would be 400 gallons a year at the 12 000 mile per year limit. That could potentially be around $6 000 over the three years that dodge would have to pay.

I guess Chrysler will be pushing really hard for peace in the middle east.

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