Government fleet to buy 17,600 U.S. cars

WASHINGTON, April 10 (UPI) -- The Obama administration announced plans to buy 17,600 U.S.-made, fuel-efficient cars for the government fleet, steering help to the ailing auto industry.

The plan to buy the traditional gas-powered and hybrid vehicles came during a week in which the administration pumped up its efforts to assist General Motors Corp. and Chrysler LLC in their restructuring efforts, The Washington Post reported Friday.

The government said it would spend $285 million in economic stimulus funds to buy fuel-efficient vehicles from General Motors, Ford and Chrysler by June 1. The purchase is to include 2,500 hybrid sedans, which officials said was the largest single purchase of hybrid vehicles for the federal fleet to date.

"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 per year and prevent 26 million pounds of carbon dioxide from entering the atmosphere," the White House said in a statement.

The government also will use $15 million of the money for advanced-technology vehicles for the government's fleet, the Detroit News reported.

"Pilot programs will focus on commercially available compressed natural gas and hybrid buses and all-electric vehicles," the White House said.

Those vehicles are expected to be ordered by Sept. 30, the statement said.

The administration has already loaned GM and Chrysler a combined $17.4 billion, and has offered more if the companies can reduce their debt and labor costs. Ford did not seek bailout funds.