Taxpayers Will Pay for 17,600 New Vehicles for Obama's Government Fleet

Submitted by SadInAmerica on Fri, 04/10/2009 - 1:27pm.

President Barack Obama said the government is speeding up its purchase of 17,600 new American- made cars for the government fleet by June 1.

The purchases from General Motors Corp., Chrysler LLC and Ford Motor Co. are being made from the $787 billion stimulus package "to increase demand for American auto companies during these difficult economic times," a White House announcement said.

The General Services Administration, the government's landlord agency, will spend $285 million from the stimulus law to buy fuel-efficient vehicles. About 2,500 of the vehicles will be hybrid sedans that will be ordered by April 15. This is the largest one-time purchase to date of hybrid vehicles for the federal government fleet, according to the statement.

"By purchasing fuel-efficient vehicles from American automakers over the next two months, this move will help stimulate the economy, support the auto industry and achieve energy-efficiency goals," Obama said in the statement.

Late last month the president rejected recovery plans submitted by General Motors and Chrysler, and gave GM, the biggest U.S. automaker, 60 days to develop an acceptable strategy. The president said No. 3 Chrysler can't survive on its own and gave it 30 days to complete a planned partnership with Italy's Fiat SpA.

The GSA is setting aside $15 million for the purchase of so-called "advanced technology vehicles" in the government's fleet, which will include compressed natural gas and hybrid buses and all-electric vehicles. Those orders will be placed by Sept. 30.

April 10, 2009 - source Bloomberg

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Submitted by SadInAmerica on Fri, 04/10/2009 - 1:27pm.