Federal Government to Purchase Fuel-Efficient Cars, Boost Auto Industry

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The General Services Administration (GSA) announced today that it will use American Recovery and Reinvestment Act (ARRA) funds to purchase 17,600 new vehicles for the federal government. The vehicles will be fuel efficient hybrids, each produced by one of the American auto makers: General Motors, Ford, and Chrysler.

“As a part of our commitment to the American auto industry, I charged my administration with using (ARRA) funds to purchase a new fleet of fuel efficient government vehicles to increase demand for our American auto companies and stimulate the economy,” President Obama said in a statement.

Here’s how the GSA fleet purchase will occur, according to a White House press release:

  • 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 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.

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