U.S. government to purchase 17,600 fuel-efficient vehicles from the Detroit 3

A White House statement said yesterday that the federal government will purchase about 17,600 fuel-efficient vehicles from the Detroit 3 by June 1. The move will use $285 million of the $300 million Congress had stated in its economic recovery act to buy new cars with better fuel-economy. According to Automotive News, the remaining $15 million will be used to fund programs for all-electric vehicles and natural-gas and hybrid buses.

On March 30th, the same day that he rejected the restructuring plans of General Motors and Chrysler, President Barack Obama said that he would buy new vehicles “as quickly as possible.”

“I am 100 percent committed to a strong American auto industry,” Obama said yesterday in a 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 statement by the White House said that the federal fleet purchase will be the largest in history and will reduce gasoline consumption by 1.3 million gallons a year.

– By: The Daily Auto Editor