Report: Secret Deal Made for Gm Vehicles

Summary


SACRAMENTO - Despite state laws that require government officials to seek competitive bids on large purchases, internal documents reveal that state officials held a series of private meetings with General Motors during which they agreed to buy "flex-fuel" vehicles from the automaker - a month before a bid for such vehicles was ever issued.

Various e-mails, memos and documents obtained by MediaNews show that the meetings took place over five months and culminated with state officials signing a Memorandum of Understanding with GM for what was then a small pilot project of 50 to 100 vehicles. No other automaker was offered a chance at the deal.

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Report: Secret Deal Made for Gm Vehicles

Soon after, the state solicited bids to buy an entire fleet of flex-fuel vehicles designed to run on high-...

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