Telecommunications giant AT&T, using its deep purchasing power, is converting its internal combustion engine Michigan fleet vehicles into compressed natural gas vehicles and other alternative fuel cars.

Automotive experts say that corporate fleet conversion programs such as AT&T's are a critical first step toward prompting consumers to make the transition to alternative powertrain cars, including hybrids and electric vehicles.

For AT&T, the transition initially means that its operations based in Ann Arbor, Detroit and Lincoln Park will receive 34 CNG vehicles, AT&T said Wednesday at a press conference outside the Michigan Theater in Ann Arbor.

Nathan Bomey | AnnArbor.com

Jim Murray, president of AT&T Michigan, said converting to CNG and hybrid vehicles manufactured by Ford Motor Co. was a logical move for AT&T. AT&T announced in 2009 that it would invest up to $565 million to replace 15,000 of its 77,000 fleet vehicles throughout the U.S. by 2018.

About 8,000 of those will be CNG vehicles, and another 7,000 will be other alternative fuel vehicles. AT&T had about 1,000 alternative fuel vehicles before initiating the conversion.

“It saves us money, it lowers pollution and it leads to more investment and protects jobs,” Murray said.

The transition, tied to the 40th anniversary of Earth Day this week, is the kind of initiative that can be a precursor to consumer adoption of clean tech vehicles, according to a market study by Ann Arbor-based Center for Automotive Research.

Kim Hill, CAR's group director of sustainable transportation and communities, said the major automakers often count on corporations to invest in alternative fuel vehicles to support the massive research-and-development costs associated with new technologies.

“Relatively few consumers have proven that they’re committed to driving alternative fuel vehicles,” Hill said. Corporate fleets “have the opportunity to lead the way.”

Some 20 percent of all vehicles sold are for corporate fleets, Hill said. That means that, by converting fleets to alternative powertrain vehicles, major corporations can make a significant dent on carbon emissions and the nation’s addiction to foreign energy.

The CAR study, which was funded by AT&T, found that AT&T’s fleet conversion would eliminate 211,000 metric tons of carbon emissions and save the firm 49 million gallons of gasoline.

As Michigan-based auto companies like Ford invest in clean tech vehicles, the gradual transition to new technologies will boost the Michigan economy.

“That is thousands of American jobs that are being saved,” said Luke Canfora, state director of Repower America.

Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com or follow him on Twitter. You can also subscribe to AnnArbor.com Business Review's weekly e-newsletter or the upcoming breaking business news e-newsletter.