Obama Administration to Buy 17,600 US-made Green Cars

10 April, 2009 01:36:00

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Obama administration will spend $285 million for 17,600 new, fuel-efficient green cars from ailing American automakers and pilot test all-electric vehicles at a cost of $15 million this year.

Under the plan, some 17,600 fuel-efficient vehicles will be purchased by June 1, including 2,500 hybrid sedans to be ordered by April 15.

"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," Obama said in a statement announcing the decision.

All purchases will be made from manufacturers with an existing contract with the federal government's General Services Administration., which are General Motors Corp., Chrysler LLC and Ford Motor Co.

“This is the largest one-time purchase of hybrid vehicles for the federal government fleet in history,” according to the statement.

Swapping older federal cars for hybrids and fuel-efficient vehicles will reduce gasoline consumption by 1.3 million gallons per year and cut carbon dioxide emissions by 26 million pounds, the White House said.

“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 government has pumped billions of dollars into GM and Chrysler in recent months in a bid to keep the auto giants afloat.

But Obama has warned the two firms could still face bankruptcy if they do not come up with viable plans to return to profitability.

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