Unique-Trump might cancel US Postal Service electrical mail truck contract, sources say

By Jarrett Renshaw and Alexandra Ulmer

(Reuters) -Donald Trump’s transition staff is contemplating canceling the U.S. Postal Service’s contracts to impress its supply fleet, as a part of a broader suite of govt orders focusing on electrical autos, based on three sources aware of the plans.

The transfer, which may very well be unveiled within the early days of Trump’s administration that begins on Jan. 20, is according to Trump’s marketing campaign guarantees to roll again President Joe Biden’s efforts to decarbonize U.S. transportation to combat local weather change – an agenda Trump has stated is pointless and doubtlessly damaging to the economic system.

Reuters has beforehand reported that Trump is planning to kill a $7,500 shopper tax credit score for electrical car purchases, and plans to roll again Biden’s stricter fuel-efficiency requirements.

The sources informed Reuters that Trump’s transition staff is now reviewing the way it can unwind the postal service’s multibillion-dollar contracts, together with with Oshkosh (NYSE:OSK) and Ford (NYSE:F), for tens of 1000’s of battery-driven supply vehicles and charging stations.

Oshkosh shares fell by roughly 5% to 105.65 per share after the Reuters report.

In a press release on Friday, Oshkosh stated it has labored intently with USPS to design and ship a modernized fleet with a versatile combine of electrical and gas-powered autos which have obtained early, constructive critiques from mail carriers.

“Oshkosh is totally dedicated to our robust partnership with the USPS and appears ahead to persevering with to offer our postal carriers with dependable, secure, and sustainable trendy supply autos, whilst USPS’ wants proceed to evolve,” the corporate stated.

Ford didn’t reply to requests for remark.

In 2023, Congress gave USPS $3 billion as a part of a $430 billion local weather invoice to purchase EVs and charging infrastructure. It plans to purchase some 66,000 electrical autos to construct one of many largest electrical car fleets within the nation by 2028.

As a part of that, Oshkosh is predicted to ship about 45,000 electrical autos, with the remaining coming from mainstream automakers like Ford, based on the USPS. The preliminary batch of 14,000 chargers are being equipped by Siemens (ETR:SIEGn), ChargePoint (NYSE:CHPT) and Blink, based on the USPS.

The USPS is an autonomous federal company with its personal governing board, making severing the contract legally difficult. However Trump’s said coverage goals are poised to check the boundaries of govt energy on a variety of points, from commerce to federal spending.

In a observe revealed on Friday, analysts from the funding banking agency Jefferies stated they do not see a complete cancellation as seemingly, however stated the combo of autos might shift away from EVs and towards fuel-powered.

“Given the necessity for the substitute of growing older gear, we’re assured that the USPS will probably be receiving new autos in 2025. The combination of that order might doubtlessly change to appease an administration that’s extra hostile to (EVs),” the analysts wrote.

The USPS didn’t reply to requests for remark.

Trump’s staff didn’t remark straight on plans for the USPS contract.

“President Trump will shield the liberty of People to drive whichever car they select, improve his powerful tariffs on Chinese language-imported automobiles, and save the U.S. auto trade for generations to return. No coverage ought to be deemed official except it comes straight from President Trump,” Trump transition staff spokeswoman Karoline Leavitt stated in a press release.

In 2021, Biden issued an govt order on EVs declaring that fifty% of all new passenger automobiles and light-weight vehicles could be zero-emission autos. To attain that purpose, Biden directed numerous federal companies to undertake guidelines on new emission and gas requirements designed to hurry adoption of electrical autos.