U.S. Govt. Might Curb Purchases of Hybrids Due to Their High Costs, Official Says
By Scott Doggett August 19, 2010
NOTE: This article was updated on Aug. 27.
Buried in a recent Federal Times article is the fact that the federal government, which recently bought more than 5,000 Ford Fusion Hybrids, paid $11,214 more for each vehicle than the nonhybrid alternative.
Because of that, federal agencies aren't likely to see another aggressive purchase of hybrid vehicles anytime soon, barring another round of stimulus funds, said Bill Toth, who heads the General Services Administration's Office of Motor Vehicle Management.
The GSA earlier this year purchased more than 5,600 hybrid vehicles, single-handedly doubling the government's inventory of hybrid vehicles, in an unprecedented effort to offload the government's least fuel-efficient cars and trucks.
The GSA received the first group of hybrids about six weeks ago, Toth told the Federal Times, and will continue to receive them through the rest of the summer. The GSA is leasing the vehicles to agencies as they trade in their older vehicles, which will be sold at auction.
Almost all of the hybrids the GSA purchased are 2010 Ford Fusion Hybrids (pictured), a mid-sized sedan that's second in class in fuel efficiency only to the Toyota Prius. The Fusion get 39 mpg in combined city and highway driving and emits 4.8 tons of carbon dioxide annually, or 2.7 tons less than the nonhybrid version.
But due to the $11,214 hybrid premium of the fuel-efficient Fusion, Toth said, he doesn't "know that we'll see the numbers we've seen in the last two years continue at that pace without some sort of infusion of capital.
"They're very expensive vehicles and when you look at meeting your mission ... and one [vehicle] is $10,000 cheaper than the other, capital's limited. It's tough to make that jump," he said.
The Federal Times reported that the GSA used its own money to cover the incremental cost for 3,260 hybrids, meaning the vehicles won't cost extra for leasing agencies.
GSA purchased another 1,600 hybrids using proceeds from the sale of older vehicles that agencies exchanged last year when they received new vehicles through the Recovery Act.
For the first time this year, the GSA is offering three all-electric vehicles. All are light- and medium-duty cargo vans and trucks that can go between 50 and 100 miles on a single charge.
But to date the GSA has received only one order - for an all-electric van produced by Enova Systems of Torrance, California. The Army will lease the van for use at Joint Base Lewis-McChord.
The van costs more than $100,000, or five times more than the $20,000 gasoline-powered cargo van typically found on GSA's schedule, Toth said.
"In trying to maximize your budget and trying to be green, there are some trade-offs there," he said. "In this case the incremental cost is very steep."
LEAVE A COMMENT
Click here to comment on this entry.First, the cost difference doesn't have to be $11k, depending on what models you are comparing.
Second, comparing purchase price is misleading. Edmunds' TCO pegs the difference between a Fusion Hybrid and S (base model) at $6k over five years, or 56% of what they're reporting.
Third, if paying $11k more for a vehicle is not feasible, how can they justify spending $80k more for an electric van?
Fourth, I don't understand how it's ok for the government to force people to buy fuel efficient vehicles (via fuel economy standards) and then exempt themselves because of "cost".
Also, an additional comment for whoever programs the TCO engine. In Illinois the registration fee has increased from $78 to $99 effective 1/1/10. So the TCO prices are a little off.
For those looking to compare my data, use zip code 60010.
I was going to post, but Mr G. Pony pretty much covered it.
How/why did they pay $11k more for the hybrid version? The MSRP is at most $8k more for the hybrid:
2010 Ford Fusion
Starting MSRP $19,695 ? $28,355
2010 Ford Fusion Hybrid
Starting MSRP $27,950
Nice negotiating, GSA.
Guys,
I put in a call to the GSA early Thursday asking about this very thing (and a number of others). A spokesperson told me the Federal Times article had some errors, and that an official with the agency would be getting back to me. I received a call late in the day from a high-ranking GSA official who said that among other mistakes in the Federal Times piece, the $11k difference was not the financial divide between a 2010 Ford Fusion Hybrid and a standard 2010 Ford Fusion, but rather the price gap between the Fusion Hybrid and a Dodge Avenger. I joke not with thee. The 2010 DA MSRP is $20,230. That's the public's price. The official said Dodge was willing to sell lots of Avengers to the GSA at a much-lower price. Another GSA official I spoke with late Thursday said he'd have a staffer get back to me with additional information today. As soon as I receive it, I'll write about all of this.
-GotZip
Scott, thanks for following up. When you learn more, please put it in a new article, as this one is getting pushed down.
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