DEJOY'S SABOTAGE

Biden Administration Suffers

Crushing Defeat For Electric Vehicle Pledge

The United States Postal Service is renewing its fleet of gas-powered 

vehicles as the Biden administration promises a mostly-electric federal fleet.

• LUC OLINGA
• FEB 25, 2022 

Finally, there will be no twists or last-minute changes. The play will be played as originally written, despite pressure and controversy.

The United States Postal Service (USPS) has confirmed its deal with specialty vehicle manufacturer Oshkosh Corp  (OSK) - Get Oshkosh Corp Report to finalize plans for between 50,000 and 165,000 gas-powered delivery vehicles.

Why This Was A Controversial Decision

The USPS/Oshkosh venture had been in limbo after the Biden administration urged the United States Postal Service to reevaluate its plans to electrify only 10% of its fleet of more than 200,000 vehicles. 

The White House was looking to pause and reevaluate the USPS contract, which could have a total value of $11.3 billion over 10 years. 

Part of the pushback comes from growing frustration with President Joe Biden's pledge to transform the country's entire fleet of 645,000 vehicles into electric vehicles. Of that 645,000, around 225,000 are post office vehicles. 

But the management of USPS has just closed that door and decided to move forward with its plan to purchase its next-generation mail trucks with nearly all gasoline-powered vehicles. 

The majority of its current trucks have been in service for more than two decades.

"USPS concludes there is no legal or other basis to delay the NGDV (the Next Generation Delivery Vehicle) program," said the group in a press release.

“As we have reiterated throughout this process, our commitment to an electric fleet remains ambitious given the pressing vehicle and safety needs of our aging fleet as well as our fragile financial condition," said USPS chief executive officer Louis DeJoy. 

"As our financial position improves with the ongoing implementation of our 10-year plan, Delivering for America, we will continue to pursue the acquisition of additional BEV as additional funding — from either internal or congressional sources — becomes available.” 

Shutterstock/TheStreet

The Process Needs to Keep Moving Forward

Last year, the USPS awarded Oshkosh Corp a 10-year contract, with an initial $482 million investment. 

That will be used to finalize the production design and construction of between 50,000 and 165,000 of the next generation of the mail service's iconic right-hand-drive delivery vehicles.

But DeJoy said the plans for the new fleet need to keep an ongoing momentum.