Hard as it may try to put to rest the “Government Motors” moniker its opponents have coined since the 2009 bailout, General Motors will probably have to deal with it again.
This time the reason is the data published by the General Services Administration (GSA), which show that GM surpassed Ford in federal government sales for the first time since the bailout.
The U.S. government purchased 19,404 vehicles from GM in the fiscal year ending September 30, 2012, which accounts for a 3.6 percent increase compared to 2011.
Unlike GM, Ford wasn’t involved in the bailout. Its sales to the government in 2012 plunged by 43 percent, to 10,734 units. The GSA, which coordinates nearly two-thirds of all government vehicle purchases, spent US$409.2 million in purchasing GM vehicles compared to US$241.3 million for Ford.
GSA spokesman Dan Cruz told Automotive News that the annual bidding “drives volume to the lowest priced vehicles”. According to the agency’s data, GM’s average price per vehicle increased by 1.9 percent in 2012 compared to 12 percent at Ford.
“Agencies purchase the low-priced vehicle as equipped with only a few exceptions”, said Cruz. “No preference is ever given to a specific manufacturer.”
GM spokeswoman Heather Rosenker denied that the company was helped by the government in any way, since it bid against it competitors. “We are proud of the service our trucks and cars provide to the nation”, she added.
Rosenker’s counterpart at Ford, Christin Baker, commented that the Blue Oval’s sales are actually higher than they appear in GSA’s data since some purchases were made through dealers and are therefore not listed.
The Chevrolet Malibu sedan was the best-selling model to the U.S. federal government last years, with 4,341 units bought at an average price of US$15,778, versus the US$22,110 sticker price. The Impala sedan and Tahoe full-size SUV were also in the Top-10.
Chrysler, which was also rescued by the bailout, but does not have any government ties since June 2011, also had two vehicles in the Top-10: the Dodge Grand Caravan minivan and the Ram 1500 pickup. Its federal government sales, though, dipped by 8.6 percent to 50,114 vehicles in 2012.
IHS Automotive analyst Rebecca Lindland points out that the government “is buying these cars because they need them, not because of anything to do with Government Motors”, yet she concedes that GM’s return to the top spot will spark criticism from those who opposed the bailout.
By Andrew Tsaousis
Story References: Automotive News
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