Feds to buy over 17,000 D3 fuel-efficient vehicles?
by Jeremy Korzeniewski on Apr 10th 2009 at 10:01AM 
2010 Ford Fusion Hybrid - Click above for a high-res gallery
As part of the Obama administration's $787 billion stimulus package, the federal government plans to spend $300 million to replace its current fleet of vehicles with more fuel efficient models. About $285 million will be used to purchase some 17,600 new vehicles from the Detroit 3 automakers by June 1. Each new vehicle will be required to manage at least a 10% improvement in overall fuel efficiency to be considered for purchase.
The first wave of orders will be for 2,500 hybrid sedans and will be finalized on April 15th (perfect timing – there ought to be a big influx of tax money coming in, right?). At the moment, we're not sure how the 2,500 sales will be broken down amongst the three automakers. We do know, however, that Ford's Fusion Hybrid is the most efficient midsize sedan available and Chrysler doesn't currently offer anything to compete.
According to a White House statement, swapping the government's current fleet for more fuel efficient models will save 1.3 million gallons of fuel per year and lower carbon emissions by 26 million pounds.
The remaining $15 million will be used for pilot programs focusing on "commercially available compressed natural gas and hybrid buses, and all-electric vehicles." President Obama said that this action will end up "[saving] the government significant money over time." Of course, it's also sure to have a positive impact on the collective pocketbooks of the American automakers. See the official White House press release after the break.
Gallery: 2010 Ford Fusion Hybrid
[Source: Detroit News]
PRESS RELEASE:
President Obama Announces Accelerated Purchase of 17,600 New American Vehicles for Government Fleet
WASHINGTON – Today, President Barack Obama announced that the General Services Administration (GSA) will accelerate its purchase of new cars for the government fleet by investing funds from the American Recovery and Reinvestment Act to buy about 17,600 new, fuel efficient vehicles produced by American auto companies by June 1, 2009.
On March 30, President Obama directed his administration to speed up the purchase of these vehicles to increase demand for American auto companies during these difficult economic times. The GSA moved faster than any time in its history to launch this aggressive fleet purchase strategy. 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.
President Obama said, "The problems that caused this economic crisis weren't created in a day, and it will take time and hard work to get our economy back on track. But I am 100 percent committed to a strong American auto industry, and we will stand with America's auto workers and their families during these difficult times. As a part of our commitment to the American auto industry, I charged my administration with using Recovery Act funds to purchase a new fleet of fuel efficient government vehicles to increase demand for our American auto companies and stimulate the economy. I am pleased to announce today that my team has moved swiftly to accelerate this purchase and give our American auto industry and our economy a boost. This is only a first step, but I will continue to ensure that we are working to support the American auto industry during this difficult period of restructuring."
Also today, President Obama's Director of Recovery for Auto Communities and Workers, Dr. Edward Montgomery, visited Cleveland, Ohio to discuss the administration's commitment to a strong American auto industry. At a meeting with Governor Ted Strickland, members of the Ohio delegation and local officials, Dr. Montgomery discussed the accelerated fleet purchase and the administration's efforts to stand behind American auto companies and their workers.
Details about the GSA accelerated fleet purchase are below:
The GSA will spend $285 million of Recovery Act Funds to purchase about 17,600 commercially available fuel efficient vehicles for the government fleet before June 1, 2009. All purchases will be made from manufacturers with an existing contract with the GSA, which are General Motors, Chrysler and Ford.
This includes the purchase of 2,500 hybrid sedans that will be ordered by April 15. This is the largest one-time purchase of hybrid vehicles for the federal government fleet in history.
By swapping out less efficient federal vehicles for new hybrid and fuel efficient ones, this strategy will reduce gasoline consumption by 1.3 million gallons per year and prevent 26 million pounds of CO2 from entering the atmosphere.
GSA will also dedicate $15 million to pilot advanced technology vehicles in the GSA Fleet. Pilot programs will focus on commercially available compressed natural gas and hybrid buses, and all-electric vehicles. These orders will be placed by September 30, 2009.
Each vehicle purchased under the GSA's accelerated strategy must have a higher miles-per-gallon rating than the vehicle it replaces with the overall goal of at least a 10 percent increase in fuel-efficiency for the entire procurement.
This accelerated GSA purchasing strategy is one component of the President's overall commitment to supporting auto demand during this period of restructuring in the industry. Moving forward, the Administration will continue to work on several fronts to increase the flow of credit to auto consumers and dealers, and will work with Congress to pass an incentive program for people who turn in older, more fuel inefficient cars for cleaner cars.
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Reader Comments (Page 1 of 3)
Mazda FTW! 10:07AM (4/10/2009)
I am not a fan of the current administration however, this is a very good move on Obama's part. I applaud him for taking a step to actively support the D3.
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Josiah 3:35PM (4/10/2009)
If my math is right (its prob not) and if gas is $3.00/gallon for the next year, that means these cars will save $390 million potentially (assuming 1.3 million gallons is accurate)?
And year two it probably gets much better.
Dan 3:55PM (4/10/2009)
1.3 million gallons at $3 a gallon is 3.9 million dollars.
Spending 300 million dollars to save 3.9 million dollars a year. Federal financial responsibility at its very best.
Randy915 6:59PM (4/10/2009)
Dan, your numbers are only for the first year, after that it's actual savings.
Will 10:11AM (4/10/2009)
I think Chrysler's contribution could be the Jeep Compass. Perhaps the US Navy could buy the Compass and catapult them at the pirates. It would be nice to see Jeep return to military duty.
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david 12:03PM (4/10/2009)
Will, you win for best comment ever.
TomdeTomTom 1:36PM (4/10/2009)
Best. mental. picture. ever. :)
KIB2 10:14AM (4/10/2009)
This is how Ford gets the job done! http://www.youtube.com/watch?v=N4c4hvMAxd0
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Frylock350 10:21AM (4/10/2009)
Don't read too much into this. The government already buys plenty of D3 products every year. Those Suburbans that escort Obama around didn't make themselves. How much of this is simply what the government would be purchasing anyways?
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Tagg 10:30AM (4/10/2009)
I agree. It's just a PR stunt like when Britney goes to Starbucks.
fixitfixitstop 11:50AM (4/10/2009)
The government doesn't always make purchases that large. The last time Chevrolet had a top-seller in the US was 1985, and it was the Chevy Celebrity. I have high beliefs that the ONLY way they moved that many cars was in fleet sales to the federal government.
Frylock350 1:18PM (4/10/2009)
The government didn't buy Celebrities, they bought Caprices.
fixitfixitstop 4:34PM (4/10/2009)
Frylock, I'm afraid you are wrong. The military bought thousands of Celebrities.
Sea Urchin 10:23AM (4/10/2009)
What most do not want to admit is that most people on Autoblog are communists, commenters not the writers (writers are just apologists).
That's right, first the government bailout, now government going out and buying CLEARLY inferior domestic hybrids. Folks, theres a reason Prius is a best selling hybrid, someone should pass the note to Comrade Obama and most posters in here.
OPEN MARKETS
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Tagg 10:30AM (4/10/2009)
Jeez you're annoying.
richard 10:38AM (4/10/2009)
Obama is not only NOT a communist, he is barely a liberal. He is showing himself to be a centrist in most of his policies. The Stimulus is only required because of the abject failure of free markets to conduct themselves with a shred of ethical behavior. Relax, Urchin. And look up communism.
Mazda FTW! 10:38AM (4/10/2009)
So the United States government should drive thousands of Toyotas in an age when the national car-makers need support?
We'd rather be commies than traitors lol. Atleast commies love their country.
The Other Bob 12:00PM (4/10/2009)
"We'd rather be commies than traitors lol. Atleast commies love their country. "
That is funny.
Mr.Oak 11:29AM (4/10/2009)
URCHIN: Wake up clown, the "OPEN MARKET" system recently imploded. See here son, Most of the professed "capitalists" turned out to be common thieves. My pension funds that I have been contributing to for almost 30 years? All but gone. STOLEN.
Funny, the capitalists told us that Socialism is bad. As it turns out, millions are now forced to rely on SOCIAL Security for their retirement income.
Said "capitalists" went to that "socialist" organization called the US Congress, begging for money to prop them up, after their scams failed.
Thank god for what you call "Socialism", or we would be really screwed right about now.
Don't try to lay blame on the Senate or Congress (Sub-Prime mortgages) for this problem, it was working fine. Greedy capitalists abused the laws. The government never told anyone to write mortgages without verifying incomes.
CNBC has a program that airs tonight @ 8:00 p.m. EST. "House Of Cards" you should peep it. You might learn something.
BoxerFanatic 11:46AM (4/10/2009)
@richard,
are you insane?
He couldn't be more leftist if he tried harder... and I am not sure he could try harder.
He has ushered in more government control in 70 days than most presidents entire terms, and probably more than all the presidents before Woodrow Wilson, combined. Not that the GWB didn't help out before he left, too.
Centrist? On what dilusional planet is government dismissing CEOs of non-governmental entities centrist?
The abject failure of the market? Get off the drugs, man. The market is trying to correct itself out from under government manipulation from the last 30-40 years. Government has pushed economic bubbles around since the clinton administration, some even tracing back to carter. Bush didn't help, and kept pushing the bubbles from tech to housing, to credit, and now the bubble is bursting, because it wasn't allowed to before.
The government caused this. The financial markets through Fannie and Freddie, and various policies that encouraged almost to the point of mandate, for sub-prime lending to known debt default risks. They have helped the inept auto companies fail through onerous regulations and demands, which are no longer supported by customers, since credit dried up, and money got tight.
So now, they are printing money like pouring water, deflating the currency to offset the debt they can never re-pay, and are setting up for huge taxation in addition to loss of consumer buying power.
Politically the Obama administration is the biggest proponent of central planning since the fall of the Soviet Union, or Roosevelt and Wilson in our own country's history.
The free market would have corrected this long ago, and with much less severity if it were actually free.
And BTW... I know the definition of Communism. Obama is more Mussolini popular dictator Fascist than Lenin/Marx total-ownership Communist, but the line of differentiation is very thin. Socialists, Fascists, Communists... all totalitarians, and pretty much all tyrants, when it comes right down to it.
None of them are proponents of individual freedom and self determination and self governance, with very limited federal power. All of them are the opposite of Jefferson, Washington, or Adams, Payne, or many of the other founding fathers.
I, for one, would much rather go back to the foundations of this country, than to the foundations of soviet Russia, socialist Germany, or fascist Italy.