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In Boost for Detroit, Obama to Buy Fuel-Efficient Fleet for Uncle Sam

Friday, April 10, 2009

According to the Huffington Post, President Obama announced on Thursday that he plans to buy 17,600 American-made, fuel-efficient cars and hybrids for the government fleet. With the purchase, President Obama will give the auto industry a shot in the arm, in attempt to help the automakers begin their long journey towards recovery and profitability.
This past Wednesday, approximately 5 billion dollars in aid has begun trickling down to parts suppliers. Eventually by June 1st, President Obama plans to spend $285 million in stimulus funds to purchase fuel-efficient vehicles from GM, Ford and Chrysler. President Obama's goal with the auto industry is to improve fuel efficiency by at least 10 percent. The benefit of a more fuel efficent car would be a calculated 26 million pound of carbon-dioxide that will not enter the atmosphere. Although Obama's purchases will give U.S. automakers some needed sales, it won't bring the industry back up to the boom years when Americans bought around 16 million vehicles annually.

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