Thursday, June 11, 2009

The Fallout of GM and Chrysler Bankruptcy

From Autoblog:

Completing the Obama Administration's plan to replace its fleet of government vehicles with newer, more efficient vehicles, the U.S. General Services Administration is reporting a purchase of roughly $210 million worth of new vehicles from Chrysler, Ford and General Motors.

Of the three American automakers, Ford was the clear winner of government funds with a total of 7,924 Blue Ovals bought and paid for at a total of $129 million (about $16,280 per car). GM was well represented too with the Fed's $105 million outlay bringing in a total of 6,348 cars (about $16,540 per car). Chrysler held up the rear with a total of 2,933 vehicles purchased for $53 million (about $18,070 per car).

Though the breakdown of actual models purchased has yet to be released, the GSA says each of the new vehicles will replace a fully operational older vehicle that was ready to be retired. To qualify for the program, the new vehicle needed to achieve better fuel efficiency than the car it replaces. In other words, we can only assume that the old fleet of Crown Vics are being turned over with new Fusions or maybe even Focuses.

Soon, the GSA plans to complete its spending ways by investing another $15 million on a new fleet of advanced technology buses and electric vehicles. See the official press release after the break.

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