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Government to Make Largest Fleet Purchase in History
10:36 a.m. EDT, April 10, 2009

In a statement issued by the White House on Friday, April 10, the government revealed its intent to purchase 17,600 fuel-efficient vehicles from the Detroit Bit Three by June 1, including 2,500 hybrid sedans by April 15, adding further stimulus to the automotive sector while cutting federal gasoline consumption by 1.3 million gallons annually.

The move, the largest fleet purchase in history, will draw on $285 million of the $300 million Congress earmarked in its economic recovery act to buy vehicles with better fuel economy. The funds must be used by Sept. 30, 2011.

"I am 100 percent committed to a strong American auto industry," said President Barack Obama in the statement. "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."

The recovery act did not stipulate from which automakers the vehicles were to be purchased, but the White House signaled its intent to buy from General Motors, Chrysler, and Ford. The remaining $15 million in the fund will go toward pilot programs with all-electric vehicles, those powered by natural gas, and hybrid buses.

Both GM and Chrysler are currently surviving on $17.4 billion in federal loans and both submitted long-term viability plans to the government that were rejected. Chrysler was given 30 days and GM 60 says to develop more stringent restructuring options.


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