Camrygate: Fiscally Good; Politically Bad
Indianapolis Mayor Greg Ballard’s decision to buy 85 Toyota Camby Hybrids rather than Chevrolet Malibu Hybrids isn’t in the league of the Big 3 Automotive CEOs corporate jet flights to Washington D.C. to ask for a handout, but it might make for a mini-chapter in Public Relations Faux Pas’.
Both are good cars but the Ballard administration spent $2.2 million for the Camrys, about $148,000 more than the price tag for the Malibus. The deciding factor, according to officials, was the superior city gas mileage of the Toyota, about seven miles per gallon while driving at slower speeds in the city. At an average 15,000 miles each year, the foreign brand should save about 10,700 gallons a year, assuming all driving is in the city. On the highway, mileage for both cars is reported at the same level.
The cars are to be used by the police department as unmarked cars for detectives and others. The city bean counters priced gas at $3/gallon and showed the decision was expense neutral after five years. If gas continues to hover at current levels it will only take ten years to break even on the decision. And, some analysts say, as demand drops, prices are headed even lower. One is talking about $1.25 by the first quarter of 2009.
To the administration’s credit, they bought through local dealers, both solid Indiana citizens.
The political faux pas that should put this in an adjacent chapter to the CEO’s missteps is that the Malibus have an Indianapolis tie -the General Motors stamping plant in Indianapolis makes parts for the Malibu. The automotive giant is in trouble and the local GM workers/taxpayers are hunkering down for a big hit, possibly the loss of their jobs.
At the end of the day, the Ballard administration may have saved the taxpayers a few thousand dollars but the mayor has lost a lot more in political capital. The use of the corporate jets to fly to D.C. probably penciled out as the best fiscal decision, but the symbolism screamed. This one’s pretty loud too.





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