Government

Obama Administration Props Up Faltering Electric Car Market

American consumers may not be embracing the concept of electric vehicles, but the Obama administration is reportedly picking up the slack in sales. According to Bloomberg, the Obama administration has purchased almost one-quarter of all hybrid vehicles sold by Ford Motor Co. and General Motors Co. since 2009. Obama Administration Props Up Faltering Electric Car Market

The U.S. General Services Administration, which runs the government fleet, bought at least 14,584 hybrid vehicles in the past two fiscal years, or about 10 percent of 145,473 vehicles the agency purchased in that period, according to sales data obtained by Bloomberg under a Freedom of Information Act request. In fiscal 2008, hybrids accounted for less than 1 percent of government purchases, the data showed.

The government is boosting investment in a technology that has failed to win broad acceptance after more than a decade in the marketplace. Consumer sales of hybrids are headed for their third consecutive yearly decline. Government agencies and businesses have said they also will purchase all-electric models being introduced by automakers including GM.

“At some point, the reality is that for this technology to be accepted, it needs to be done without a government crutch,” said Jeff Schuster, director of forecasting at J.D. Power & Associates in Troy, Michigan. “But without a huge gas-price increase or further government demand, the natural demand just isn’t [going] to be there.”

About 3,100 of the vehicles purchased by the GSA were paid for with stimulus dollars, and another 5,600 were bought with proceeds from selling older cars from the government’s fleet.

GSA spokeswoman Sara Merriam says the majority of government hybrid purchases came after President Obama was sworn in, but admits the administration has bigger plans for the future, including using its buying power to steer the auto market.  “This is the beginning,” she said.  “Our main goal is to increase the fuel efficiency of the federal fleet.  The other goal is to drive the market toward cleaner technologies.  It’s in the early stages of the government acquiring more hybrids and in larger quantities.”

According to the GSA data, the hybrid models purchased by the GSA ranged in price from $23,072 to $47,079, receiving an average $5,281 discount off dealership sticker prices.

Brett Smith of the Center for Automotive Research in Ann Arbor, Mich., says that the clear lesson is that it “isn’t easy” to make these vehicles mainstream.  “They are still not near the point where they are cost-competitive in the market,” he says.

But Dan Becker, director of the Washington-based Safe Climate Campaign, praised the Obama administration‘s investment in the new technology and the government’s role in moving the market.  “At a time when we’re just beginning the era of the hybrid, it’s a positive sign that the government is stepping up to the plate and helping build that market,” he told Bloomberg.

The Obama administration has set a goal of 1 million plug-in vehicles to be on America’s road by 2015 and has committed more than $11 billion in taxpayer funding to help support the technology.  The federal government is also incentivizing the purchase of hybrid vehicles by offering as much as $7,500 in tax credits for the purchase of plug-in vehicles.

Comments (110)

1 2 3
  • dontbotherme
    Posted on November 23, 2010 at 8:01pm

    we aren‘t buying them because we don’t want to.

    Report Post »  
  • Rowgue
    Posted on November 23, 2010 at 8:00pm

    This is exactly what Enron was doing. Taking money from one pocket and sticking it in another pocket to artificially prop up a failing business. This is nothing more than a government subsidized shell game.

    Report Post »  
  • AZBOB
    Posted on November 23, 2010 at 8:00pm

    When the last person with a brain leaves Washington DC, please bring the American flag with you.

    Report Post »  
  • parmajohn
    Posted on November 23, 2010 at 7:59pm

    Its nice that they spend our money that they shouldn‘t have spend to buy things we won’t buy with our money to buy things with our money Common denomanator Our money….Confused Me Too

    Report Post »  
  • Exrepublisheep
    Posted on November 23, 2010 at 7:59pm

    11 Billion of taxpayer dollars. Wow. 743 Billion to fight Hussain. 368 Billion so far in Afghanistan. I don’t even comprehend these numbers. Spent by Repubes AND demoncrats. If only there were a third party…

    Report Post » Exrepublisheep  
  • heavyduty
    Posted on November 23, 2010 at 7:59pm

    There is no doubt about it, we need to keep pushing until we get Obama out of office. Just as some of these comments have said. AMERICA or any other country will never go completely green unless they find a substitute for oil and gas. Then when you do find a substitute it will more than likely be just as bad if not worse than oil and gas.
    Dang I had you going for a minute didn’t I!!! We could get all the Democrats and they would power the earth with their bullcrap forever.
    Then all you have to do is pat them on the back and tell them what a good job they are doing.

    Report Post »  
  • republitarian
    Posted on November 23, 2010 at 7:58pm

    On the up side, it’s government workers who will be made to drive the damn things. It might make sense for large fleets though. I wonder if the private sector is following suit.

    Report Post » republitarian  
  • TexasHillsPatriot
    Posted on November 23, 2010 at 7:57pm

    A hybrid, supposedly will charge the battery when it’s running on gas. My question is, has anyone done an analysis as to how long these batteries last, and what is the expense of replacing one? With over 14K of those in government use, I wonder what that will cost us in a few years, as opposed to the gas a normal car would use.

    Report Post » Texas Hills Patriot  
    • Bonnie
      Posted on November 24, 2010 at 12:29am

      You asked about the battery on these hybrids. I have a Honda Civic Hybrid. This car does not need to be plugged in–it runs on both electricity and gas. Once the engine is going, it charges the battery. The battery is supposed to last approximately 5 years and it costs approximately $5,000 to replace it. We are getting close to the end of our battery life, so my husband and I are thinking we need to sell it before it dies. This is one of the main problems with these cars. It is not acceptable to have to spend $5k every 5 years just to keep your car running. Most people will do what we are planning on doing–get rid of the car before the battery dies.

      Report Post » Bonnie  
  • cliKKer
    Posted on November 23, 2010 at 7:57pm

    Let me get this straight… we bail out and buy GM. We then allow GM not to restructure screw their investors but save the Unions which are killing them. We then have GM push an Electric car that doesn’t work that well and none wants. So we subside it with our money and buy the cars from GM (ourselves) That is like writing yourself a paycheck from your credit card thinking your getting ahead. On top of all of this don’t they realize these are COAL burning cars because they USE ELECTRICITY which is created from COAL. the government is either morons or CORRUPT. If walks like Duck talks like a Duck it is a DUCK

    Report Post » cliKKer  
  • tobywil2
    Posted on November 23, 2010 at 7:57pm

    ALTERNATIVE ENERGY:

    The reason why “ALTERNATIVE ENERGY” is “ALTERNATIVE ENERGY” is that it cost more; otherwise, it would be primary energy. Most “ALTERNATIVE ENERGY” also deprives our plants of the carbon dioxide they require to grow. Do you enjoy fruits and vegetables? http://commonsense21c.com/

    Report Post » tobywil2  
    • Rowgue
      Posted on November 23, 2010 at 8:05pm

      Coal and oil burning produces carbon monoxide not carbon dioxide. CO not CO2. Plants aren’t going to die because people burn less oil. Take a second and think before you comment.

      Electric cars and alternate energies aren’t taking off because the logistics are not realistic for large scale use. These things are feel good projects that tree huggers like to think makes them better people. No more and no less.

      Report Post »  
    • BRAVEHEART
      Posted on November 23, 2010 at 8:31pm

      Is it really posible to make treehuggers better people? Once you reach that level of stupidity I’m not sure its actually possibile to reverse the damage or restart positive brain function?

      Report Post »  
  • Its Gonna Getcha
    Posted on November 23, 2010 at 7:56pm

    I’m beginning to understand. After being propped up all your life, what better revenge then to find a country to prop up.

    Report Post » Its Gonna Getcha  
  • MichiganPatriot
    Posted on November 23, 2010 at 7:55pm

    So we spend taxpayer money on cars we can’t drive, we the taxpayer pay to make them, put our blood and tears into the developement, assembly and distribution so he can get them for free for all his liberal friends and family. Sounds like Socialism to me..or just another way to lean America forward….

    …Is that politicaly correct…hmmm…dunno

    Report Post » MichiganPatriot  
  • Sinista Mace
    Posted on November 23, 2010 at 7:55pm

    The new definition of Democracy, a government run by Demons.

    Report Post » V-MAN MACE  
  • heavyduty
    Posted on November 23, 2010 at 7:54pm

    You have to almost feel sorry for Obama, everything he tries to do, turns to crap. Going green is just like global warming. It’s a farce, fairy tale, lie, or whatever you want to call it. But if we could get rid of fannie mae and freddy mack I know and the subsidies for going green, we could probably break at least even. Oh yeah, if we could get rid of Bawney Fwanks, we could possibly kiss the debt goodbye.

    Report Post »  
  • cheezwhiz
    Posted on November 23, 2010 at 7:53pm

    So lets see :

    AlGore promoted ethanol from corn to win elections and make money,

    UN promoted climategate to spread 3rd world poverty around , and make money

    Hussain purchased inefficient vehicles with tax dollars , to prop up his own car company which he purchased with taxpayer money,

    Who says crime doesn’t pay ?

    Report Post » cheezwhiz  
  • Sinista Mace
    Posted on November 23, 2010 at 7:53pm

    As soon as they have everybody on electric vehicles, well then, they can shut down your vehicle at the flip of a switch.

    They already want to install brake overrides in your vehicles.

    I don’t want them to have any more power.

    Report Post » V-MAN MACE  
  • oldasdirt
    Posted on November 23, 2010 at 7:53pm

    Electric cars are great,if you are playing golf.
    Most of us have places to go,and this Chevy POS is not going to get us there.

    Report Post » oldasdirt  
  • inmyhumbleopinion
    Posted on November 23, 2010 at 7:52pm

    This is fanTAStic……so long as these government workers don’t have to go more than 40 miles AND they have one of those SPECIAL plug-ins, life will be WONderful for everyone!!!!!

    Oh, and did I fail to mention this is all dependent on whether ELECTRIC prices continue to tumble.

    OOOOOOpppppsky………three strikes…….eject the dumb a@@ please…….and his minions! Yee gads!

    Report Post »  
  • Mikee T
    Posted on November 23, 2010 at 7:49pm

    It must be nice to be a complete and utter moron / lunatic / progressive (which comprises the whole Obummer Administration and then some) and have that kind of check book …… God Help Us….

    Report Post »  
  • M4920
    Posted on November 23, 2010 at 7:46pm

    Hmmmm, here’s a great place to start trimming our budget…

    Report Post »  
  • guyperram
    Posted on November 23, 2010 at 7:46pm

    As the price of gasoline skyrockets they will sell more hybrids. They will sell like hotcakes when gas hit $7-8 per gallon, which should happened within the next 6 months.

    Report Post »  
    • what4
      Posted on November 23, 2010 at 7:54pm

      Not…Electricity will be through the roof too! The Obummer will see to that too!

      Report Post »  
  • cheezwhiz
    Posted on November 23, 2010 at 7:45pm

    “But without a huge gas-price increase or further government demand, the natural demand just isn’t [going] to be there.”
    —————————-

    OK now we know where this is heading !

    Report Post » cheezwhiz  
    • untameable-kate
      Posted on November 23, 2010 at 8:04pm

      For people like myself for whom driving is a necessity, I not only pay about two hundred dollars a week for my own vehicles but pay for my employees gas. Obozo needs to explain to people who have house cleaning services and any other business where people need to drive alot for thier living how this will help the economy by putting us out of business with his 8 dollar gas.

      Report Post » Untameable-kate  
  • untameable-kate
    Posted on November 23, 2010 at 7:43pm

    I have never gone anywhere and seen a station where you can even plug one of these POS cars in. Since when is it the governments job to steer a market. I hate this fricking government.

    Report Post » Untameable-kate  
    • Sledgehammer
      Posted on November 23, 2010 at 7:49pm

      Kate, their like kids, every once in a while you need to slap them straight.

      Report Post » Sledgehammer  
    • trolltrainer
      Posted on November 23, 2010 at 8:06pm

      With all due respect Kate, these are hybrids, at least at this point. This means they also use a gas engine. You do not plug them in. At least not the models I am aware of.

      I am going to remain noncommittal on this article, my problem is that there are cheap, low power pure gas cars that are actually more efficient than bigger hybrid SUV types. From the standpoint of pure efficiency the hybrid might not actually be the best bet.

      OTOH, my wife owns a Prius and it is actually a great car. Definitely not a “POS.” It will keep up with nearly any other 4 banger out there, it is very comfortable and easy to drive, great on long trips, but best of all it gets a solid 50MPG even with 80MPH interstate driving! This would be an awesome company type vehicle. And as far as all that “green” BS goes…Who cares? I hate when people always bring this up. Really, that was not a point for us, we simply wanted the best MPG possible. I also laugh at the “cost” argument. Yeah, I will never save enough on gas to make up for the price of the car…But the car was 25K which is what you would pay for any equivalent vehicle…Now maybe if they wanted 45K for the silly Chevy volt I might have balked, after all, I could get the VW diesel and get 45MPG though diesel is more expensive…Still…The VW is a nice car…Anyway…

      Report Post »  
    • snowleopard3200 {mix art}
      Posted on November 23, 2010 at 8:06pm

      Also figure any manufacturing and royalites rights will be dolled out by the government to all of those who support Obama while in office. Legalized graft and corruption are at hand.

      Report Post » Snowleopard {gallery of cat folks}  
    • untameable-kate
      Posted on November 23, 2010 at 8:15pm

      Sorry, the first line says electric vehicles and I guess I got caught up on that. I still need a work truck though and a Prius doesn’t work for me. I have heard that they are good cars though.

      Report Post » Untameable-kate  
    • LUDWIKA BRONISLAWA
      Posted on November 23, 2010 at 9:02pm

      Oh, MY little town (wanna be cool like the big city) just ran an article in the daily rag last week all about trying to get those charging stations put in. They also recently finished their TWO YEAR project to repave THREE blocks AND install a sidewalk heating system downtown. BRILLIANT huh?! Personally, I don’t like the progs that are already here, let alone want to attract MORE of them. I see more empty parking spaces we normal people could use in the future. Wonder how much the parking tickets will be. ‘You have just parked in a space reserved for an energy efficient low emission vehicle’ BALONEY! These people are making me crazy.

      Report Post » LUDWIKA BRONISLAWA  
    • Bevaboo
      Posted on November 24, 2010 at 12:45am

      @ TrollTrainer – EXACTLY! The gas mileage is the only reason I bought my Prius. We buying about 20 gallons of gas a week in my old vehicle. The Prius uses 9 or less. We bought a used 2007 with around 50,000 miles for about $17K, so I don’t feel as if I paid too much for it in the first place. Meanwhile, at $2.56 per gallon, we’re saving around $28 a week, or $120 a month. Choices like this are what makes being a stay at home mom possible for me.

      I don’t believe in the green crap; we all have the right to choose the vehicle we’re most comfortable in. I’m a short lady, so I love driving a tiny car. I’m not judging SUV drivers, though I know they don’t work for my budget. This works for me. I don‘t care about anyone else’s choices.

      Report Post » Bevaboo  
  • neverending
    Posted on November 23, 2010 at 7:42pm

    Biggest horses a@@ that ever walked the face of the earth.

    Report Post »  
    • what4
      Posted on November 23, 2010 at 7:53pm

      ditto that!

      Report Post »  
    • mikem1969
      Posted on November 23, 2010 at 11:04pm

      Here is an even bigger horses butt. All the greenies whine about us using gas, but when you plug the car in to charge, you burn more coal, oil, natural gas, or what ever the local power plant runs on and actually create more carbon emissions than just driving your old clunker. Imagine that.

      Report Post »  
    • Fear The Voices
      Posted on November 24, 2010 at 5:35pm

      So true! This jackass-in-thief is the dictionary example of incompetence, arrogance, stupidity, failure, ignorance, and so on….

      Not only are these cars going to cost us far more than we should be paying, but we could probably purchase almost double the number of vehicles for the same price….. This is shear stupidity!
      With the added complexity of these vehicles, they’ll likely cost us more for repairs as well. It is also shown to take much longer for the additional cost of these vehicles to offset any saving in operating cost; if one is even realized, as environmental conditions can drastically effect the efficiency of the batteries. Additionally, the primary use of the vehicle will also effect it’s efficiency too; highway versus city operation.

      Now, does the government have the facilities in place to charge these vehicles, or are they going to soak us to build the required infrastructure to recharge them?

      There are many more questions we could ask in regards to the increasing use of these vehicles, but this is not the forum to get into them; but we can all agree that this is a tremendous waste of our tax dollars, since we could probably be buying three traditionally powered cars for the cost of two of these.

      This just clearly illustrates how government is not equipped to make decisions regarding most everything. They can’t do virtually anything right!

      Report Post » Fear The Voices  
  • Sledgehammer
    Posted on November 23, 2010 at 7:41pm

    Well sure he did, it‘s not lke it’s his money! Stupid is as stupid does.

    Report Post » Sledgehammer  
    • CatB
      Posted on November 23, 2010 at 7:49pm

      Electricity in this country largely depends on COAL … these electric cars mean more COAL is needed …. dumb dumb dumb — not to mention that our electric bills will “necessarily skyrocket” … thanks for NOTHING OBAMA!

      http://www.youtube.com/watch?v=HlTxGHn4sH4

      Report Post »  
    • tobywil2
      Posted on November 23, 2010 at 7:56pm

      THE GREAT “GLOBAL WARMING HOAX”

      The proposals to combat “GLOBAL WARMING” have more potential to destroy our freedom and prosperity than any issue since WORLD WAR II. The cost of energy is increased by all these proposals. Energy is contained in all the products used to sustain our lives.

      These proposals will be devastating to the poor, where the cost of survival consumes all their income.

      Do you realize that these proposals are to combat an issue that has not even been proven to exist?
      AND YOU LAUGH AT DON QUIXOTE?

      THESE PROPOSALS WILL ONLY ENHANCE THE POWER OF THE “PEERS.” “CAP AND TRADE WILL DESTROY YOUR WEALTH AND FREEDOM!!

      BRACE YOURSELF, THOMAS PAINE, REJOICE YOU “PEERS” THE TYRANNY OF
      KING GEORGE III IS BEING RESTORED BUT UNDER NEW MANAGEMENT!
      http://commonsense21c.com/CLIMATE.html

      Report Post » tobywil2  
    • snowleopard3200 {mix art}
      Posted on November 23, 2010 at 8:04pm

      Honestly Obama gives a new definition to the term government inefficiency and incompetency.

      http://www.artinphoenix.com/gallery/grimm

      Snowleopard {gallery of cat folks}  
    • uneedmorekoolaid
      Posted on November 23, 2010 at 8:22pm

      The Post Office tried a pilot program in Arizona with all electric vehicles for their delivery vehicles. After the warrenties ran out with the dealerships the true maitanence cost rang in and the cost of replacing the batteries alone cause them to chuck the idea of to the scrap yard. And they don’t drive that far every day! Met a few people all geddy for geting on of these electric cars and I want to slap them, cause they think that they are going to be so wonderful. That is until they break down and your average mechanic has no idea what to do with them, so that means back to the dealer where they bend you over with their labor rates! What about when the power goes out at your house? Oh and you greenie weenies I thought coal was evil? Your words not mine! Well what do you think powers mast of the electric plants? yeah coal! Oh and what about in the summer when there are brown outs or black outs, are we going to limit charging cars since they use more power then your AC?

      Remember when you have to props something up it is cause it is not strong enough to stand on it’s own!!

      uneedmorekoolaid  
    • PeterThePainter
      Posted on November 23, 2010 at 8:25pm

      Get ready…..the Government is supposedly pushing solar power, well you can spend 25-35K (after tax incentives/rebates) installing a PV system. Then purchasing a 100K bond that the electric provider requires, then if you do have energy to pump back into the system they will only pay you a few pennies on the dollar or nothing. Electric providers (at payers expense) are erecting thousands of solar systems to provide additional power for their OWN grid. As we conserve energy, the price of it will increase. Here in the lala land of California, water was the resourse that we conserved to a point that…the water companies income fell….so being a Public utility, the water companies asked for an increase in rates because they did not have enough income to pay their employee’s. Request Granted. A public utility is guarenteed profits of operation by our Government agency the PUC. So as we begin to use less energy….the price will continue to increase. In other words…the people that are installing Solar Systems for the green economy are increasing the rates for the people that cannot afford them. Oh and most people go to the bank to loan the money to install their system….who’s winning this battle.

      Report Post »  
    • GRuss
      Posted on November 23, 2010 at 8:28pm

      Until America gets serious about investing in Nuclear Power Plants, Plug in Vehicles will only overload the grid..

      Report Post » GRuss  
    • LUDWIKA BRONISLAWA
      Posted on November 23, 2010 at 8:41pm

      So, not only is obama their celebrity endorser, but he’s also manipulating the market? NICE.
      BTW, I will no longer be capitalizing ‘obama’ as he does not believe in capitalizing, also, to show my blatent disrespect! lol

      Report Post » LUDWIKA BRONISLAWA  
    • The Vengislator
      Posted on November 23, 2010 at 9:00pm

      Look, I know these thing are gutless pieces of expensive crap, but my bosses have ordered me to figure out ways to curb your freedoms. By making driving unaffordable and impractical, I can “nudge” you into riding a bike, or walking. Its hard for you to take your family to Disneyworld on a bicycle or in a Prius.

      Report Post »  
    • ishka4me
      Posted on November 23, 2010 at 10:32pm

      I once got a Tyco elctric car set for Christmas. The first day it ran great, but a week later it barely ran at all and it always smelled like burning rubber.

      Report Post »  
    • paperpushermj
      Posted on November 24, 2010 at 7:37pm

      Let me get this straight. Our government is replacing autos it already owns with vehicles that cost about twice as much and less capable because the general public is smart enough not to pay twice as much for a less capable vehicle. You can’t make this kind of thing up ….CAN YOU

      Report Post » paperpushermj  
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