Can the White House stimulate auto sales?

The White House/US Federal Government to Buy 17,600 Vehicles
The White House to Buy 17,600 Vehicles
Yesterday the White House announced that the US federal government is going to purchase about 17,600 fuel efficient cars by June 1st, 2009. See the official press release.

The federal government will purchase all of the vehicles from two companies they already bailed out, Chrysler and GM, and Ford which has yet to request and accept bailout money. The purchase will include buying 2500 hybrid sedans, which will most likely include the new 2010 Ford Fusion Hybrid.

But if you compare this purchase to the auto sales that occurred during last month (approximately 850,000 vehicles were sold in March across the United States), it is still a drop in the bucket. If annual US auto sales reach what is projected, about 9.86 million vehicles, the 17,600 vehicles the federal government will be buying will represent only about 0.18 % of the total number of vehicles sold in the United States in 2009. (Yes, that is 0.18%, less than a quarter of one percent.)

(17,600/9,860,000) x 100 = 0.178 (approximately 0.18%)

Is this enough to stimulate auto sales?

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest
Auto Upkeep 4th Edition

Michael Gray

Mike has roots in the automotive service industry. He began diagnosing and fixing cars at a young age in his family’s service station. He has worked in automotive parts supply stores, towing companies, and service facilities. After graduating from St. Cloud State University (MN) with a Bachelor’s degree, he implemented and taught a basic car care program at the high school level. During work on his Master’s degree at Illinois State University (IL), he was a curriculum specialist on a National Science Foundation project where he co-authored ten integrated mathematics, science, and technology books designed for team teaching. Mike has also supervised teachers in Career and Technology Education as a school system administrator.

Call us at 800-918-7323