NEW mail trucks are in for a big re-design after the mission to electrify the USPS delivery fleet hit a major roadblock.
The manufacturer behind the new electric vehicles says it will build gas-powered trucks instead of EVs – to appease President Donald Trump and keep its huge contract.
The U.S. Postal Service’s new zero-emission electric next-generation electric delivery vehicle – which has annoyed Donald Trump[/caption]
Oshkosh CEO John Pfeifer speaks at the car maker’s booth at the Consumer Electronics Show (CES) on January 7, 2025 in Las Vegas[/caption]
The United States Postal Service (USPS) secured multi-billion dollar contracts for at least 66,000 electric vehicle delivery trucks and charging stations.
But that expensive agreement apparently prompted anger from Trump and his transition team.
Sources warned the Republican was seriously considering canceling the USPS’s contracts to electrify its delivery fleet following Trump’s January 20 inauguration.
And now, in a U-turn following negative publicity, vehicle maker Oshkosh Corp – which has been providing the service’s all-electric “Duck” mail trucks – has revealed it might instead supply gas-powered vehicles.
This was due to fears that USPS could chop orders for the new EVs under Trump’s second term.
John Pfeifer, the firm’s boss, confirmed the likely U-turn during the Consumer Electronics Show (CES) held this month in Nevada, Texas.
He told Bloomberg: “We’ll do what they want us to do — supplying either gas or electric.
“A new Congress could come in and repeal, I guess, part of the IRA [Inflation Reduction Act] that hasn’t been spent.”
Oshkosh has been contacted for comment.
US President Joe Biden vowed to make electric vehicles account for 50 percent of all new car sales by 2030.
In 2023, Congress gave USPS $3 billion as part of a $430 billion climate bill to buy EVs and charging infrastructure – including $1.2 billion for electric vehicles.
However, Trump is an EV critic – despite his strong friendship with Tesla boss Elon Musk.
Three sources familiar with Trump’s plans told Reuters last December that the EV truck contract would likely be axed.
This threatened move was part of a broader suite of executive orders targeting electric vehicles, the unnamed sources added.
Trump has previously shared doubts on the financial implications of installing EV chargers nationwide, claiming that to do so could cost from $5 trillion to $12 trillion.
But just last month, U.S. Postmaster General Louis DeJoy defended plans to buy more electric delivery vehicles.
He told a U.S. House of Representatives hearing that he did not plan to return funding earmarked for zero-emission models without legislation from Congress.
This prompted a response from Representative William Timmons, a South Carolina Republican who represents the district that is home to the Oshkosh plant building the EVs.
Why aren’t people buying EVs?
After many EV makers reported slow demand in 2024, news agency Reuters said there are several reasons for the slow-down in purchases:
- High initial costs. Many automakers, like Tesla, Hyundai, and Ford have conducted “price slashes” on their flagship EVs to attract new buyers, though demand remains slow.
- Higher insurance costs. Some insurance companies cite fire risks, high costs of battery replacement, and higher vehicle weight as reasons for higher premiums.
- Charging anxiety. A large percentage of people remain fearful of being in a situation where they won’t be able to charge if they run out of battery due to a lack of infrastructure.
- Range anxiety. In many instances, EVs still don’t have the range and infrastructure of gas-powered vehicles.
- Poor performance in extreme temperatures. Reduced range in extremely hot or cold weather makes potential buyers wary.
Source: Reuters
He said USPS should revert to its prior plan to buy 90% gas-powered vehicles – but not cancel the contract.
Timmons added: “There’s no reason that we should spend a billion plus more dollars to impose a green new deal mandate on the Post Office.
“I can promise you that Congress is about to fix it. I look forward to working with the incoming Trump administration to right this ship.”
‘DUCK’ TRUCKS
They may be green, but the Postal Service’s new delivery vehicles aren’t going to win a beauty contest, according to the Associated Press.
The news agency described the electric-powered trucks as “tall and ungainly.”
It added: “The windshields are vast. Their hoods resemble a duck bill. Their bumpers are enormous.”
The BBC reported in 2023 that while the EV market has expanded, “the US’s electric vehicle ‘revolution’ appears to be much slower than some analysts and car manufacturers expected.”
The UK-based news site blamed the struggling sales on a lack of affordability, and charging difficulties.