The Obama administration announced Thursday it is buying 17,600 fuel-efficient vehicles from Detroit’s Big Three by June 1, using $285 million from the $787 billion stimulus bill.
The government will order 2,500 hybrid sedans by April 15 as part of the purchase. Hybrid sales have collapsed as gas prices have hovered around $2 a gallon. Overall U.S. auto sales have fallen 36 percent in the first three months of the year.
“The problems that caused this economic crisis weren’t created in a day, and it will take time and hard work to get our economy back on track,” President Barack Obama said in a statement. “But I am 100 percent committed to a strong American auto industry, and we will stand with America’s auto workers and their families during these difficult times.”
All of the vehicles will be purchased from General Motors Corp., Ford Motor Co. and Chrysler LLC.
The effort comes after the government has loaned GM and Chrysler $17.4 billion in the past four months to stay afloat. The administration rejected their viability plans on March 30, giving Chrysler 30 days to complete a merger with Fiat SpA and GM 60 days to revise and toughen its viability plan. Obama also forced out GM Chairman and CEO Rick Wagoner on March 30.
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