Yesterday, Hyundai announced an expansion of its successful Assurance Program, which gives new-car customers the option of returning the vehicle if they lose their source of income. Through July, customers will have the option of locking in gas prices at $1.49 per gallon for the next year when they buy or lease eligible vehicles. (See program details here.)
Participants in the Assurance Gas Lock promotion will receive a card for purchasing fuel; card users will be charged $1.49 per gallon regardless of the true price, and Hyundai will pick up the difference.
This is a smart effort to build brand confidence and alleviate consumer anxieties in uncertain economic times, especially as the company’s research has shown that fluctuating fuel prices can be a major deterrent for potential car buyers. But it could backfire if gas prices decline sharply. When Chrysler launched a similar program in 2008, participants got the short end of the deal when gas fell below the fixed promotion price of $2.99 per gallon.
Jessica, with the amount of retail share Hyundai has gained this year, I think their U.S. strategy will eventually become a textbook study in how to market during an economic crisis. They seem to being doing everything just right, seemingly one step ahead of primary competitors.