On March 27, Obama said the automotive industry must be preserved not only because of its financial or symbolic value, but also because of the large number of people who are involved in this segment of the economy. And he meant every word.
This move is based on simple reasons, including collapsing hybrid car sales due to high gas price of around $2 per gallon and gloomy predictions, and was adopted to give the car manufacturers a small boost. As you might remember from our previous reports, 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," American president Barack Obama was quoted as saying by The Detroit News. "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,” he added.
Besides the positive effect it's going to have on the environment, this decision is going to ensure the survival and revitalization of the American auto industry.
“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, and also that “This is a welcome and important step that reflects the President's commitment to the survival and revitalization of the domestic auto industry”
The government will order 2,500 hybrid sedans by April 15 as part of the purchase, the rest of the cars to follow by the and of May.