American Motors Corp. said Thursday it will provide customers with free gasoline for 10,000 miles of driving if they purchase a new AMC car from dealer stocks between June 16 and July 31.
The automaker has failed to lure buyers with offers of reduced prices, discount loans and extended warranties on its 1985 models.
AMC`s ”The Gas Is on Us” promotion was announced moments after the automaker reported that sales in the first 10 days of June fell 27 percent, to 2,360 units from 3,250 a year earlier.
Despite the AMC decline, the domestic automakers reported that combined sales in the early-June period rose 15 percent, to 215,815 from 187,482 a year earlier, the highest level for the period since 1978.
Sales in the June 1-10 period reached an annual rate of 8.6 million, up from 7.6 million in the year-earlier period.
The showing was stronger than expected, because most of the industry`s discount loan programs had ended. Chrysler Corp.`s ”Thank You, America”
promotion, which offered former buyers of Chrysler products $500 certificates toward the purchase of a new car, expired June 6.
AMC said it would let its 8.5 percent loan program expire Saturday and begin its free gasoline program Sunday. Under the program, AMC calculates the cost of fuel for 10,000 miles based on Environmental Protection Agency fuel economy ratings for AMC cars and the EPA estimate of fuel costing $1.25 a gallon.
Buyers will get a check for $338 to $595, based on the car`s fuel economy, or they can apply the amount to the down payment, AMC said.
In the early-June period, General Motors Corp. sales rose 17 percent to 129,594; Ford Motor Co. sales were up 14 percent to 52,846; Chrysler sales jumped 21 percent to 28,184; and Volkswagen sales were up 19 percent to 986. Honda sales fell 34 percent to 1,845.
Since Jan. 1, the domestic automakers have sold 3.85 million units, up 4 percent from 3.7 million a year earlier.
