U.S. government to waste $285 million on 17,600 American-made autos

In yet another foolish attempt to stimulate the economy, President Obama says the Government Will Buy 17,600 American-Made Autos.

President Barack Obama said the U.S. government will buy 17,600 new, fuel-efficient vehicles from ailing American automakers by June 1.

The president made the announcement Thursday in a statement issued by the White House, saying the General Services Administration will spend $285 million of Recovery Act Funds to purchase the vehicles for the government fleet.

All purchases will be made from manufacturers with an existing contract with the GSA, which are General Motors Corp. (GM), Chrysler LLC and Ford Motor Co. (F). This includes the purchase of 2,500 hybrid sedans that will be ordered by April 15.

“This is the largest one-time purchase of hybrid vehicles for the federal government fleet in history,” according to the statement.

The decision was made to buy the vehicles on the short timetable to help give a boost to the economy, as well as demonstrating the Obama administration’s support of the U.S. auto industry.

“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 scariest part of the announcement is "This is only a first step."

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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