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Gas Expensive, So Subsidize Guzzlers?

Posted by: lainie herrera

25 May 2006 - 6:00am

"Aiming to capitalize on consumer angst about the high cost of gasoline, General Motors Corp. on Tuesday said it would cap pump prices at $1.99 for customers in California and Florida who buy certain vehicles by July 5.

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One hitch to the promotion is that customers must also 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."

GM responds to higher gas prices by offering those who purchase SUVs in California and Florida subsidies on their gas expenses.

"Aiming to capitalize on consumer angst about the high cost of gasoline, General Motors Corp. on Tuesday said it would cap pump prices at $1.99 for customers in California and Florida who buy certain vehicles by July 5.

One hitch to the promotion is that customers must also 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."

Source: Associated Press, May 23, 2006
Full Story: GM Will Cap Gas Prices for Calif., Fla.
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