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Jul 20, 2007 - 12:00 PM

General Motors Won Exclusive Deal After Gifts to Gov

by Carmen Balber
FTCR called for an investigation yesterday, and a state Senator has demanded more information, concerning Governor Schwarzenegger's relationship with General Motors and the administration's award of an exclusive contract for "flex-fuel" vehicles to the auto company.

General Motors has helped the governor greenwashhimself as an environmental hero while contributing millions to his pet projects and campaign. Contributions include an acknowledged $15 million (including $11 million cash and Hummers to be auctioned) given by GM to Arnold's non-profit Arnold's All Stars, 6 vehicles and drivers donated to the governor's office for its trip to Japan, and $47,000 in contributions from the company to the governor's campaigns and inaugural.

After all that benefit on the gov's part, it's more than a little suspicious that the administration designed a contract that only GM could fulfill.

Under the GM contract, the state purchased 1,134 "flex-fuel" vehicles for the state fleet. The program was promoted as an example of the administration's commitment to environmental protection. However, the cars never ran on alternative fuel, and actually produced more air pollution than the cars they replaced.

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