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USPS Shuns Biden's EV Dreams With Massive Gasoline-Powered Mail Truck Purchase

Tyler Durden's Photo
by Tyler Durden
Thursday, Feb 24, 2022 - 12:20 AM

The Biden administration has been pressing the U.S. Postal Service (USPS) to make a massive purchase commitment of electric delivery vehicles, though such plans were derailed Wednesday when the agency announced a majority of its next-generation fleet would be powered by gasoline rather than a battery, according to Bloomberg

USPS' record decision memo states that the agency will move ahead with its purchase of 165,000 mail trucks over the next decade. At least 90% of these trucks will be gasoline-powered built by Oshkosh Corp., and 10% will be electric.

This action steamrolls the Biden administration's pledge to replace its federal fleet of 600,000 cars and trucks with electric power. USPS operates 230,000 vehicles, which is approximately 33% of the government fleet. Postmaster General Louis DeJoy, a Trump ally, has firmly said the full electrification of the USPS fleet wouldn't happen under his watch. Last year, he committed to converting only 10% of its new trucks to electric power.

The decision allows USPS to purchase gasoline-powered trucks from Oshkosh under a $6 billion contract awarded last February. USPS rejected a bid from electric-vehicle manufacturer Workhorse Group Inc. to electrify its fleet. Workhorse shares slumped as much as 3.5% today on the USPS news to purchase Oshkosh mail trucks. 

USPS wrote that given its financial condition, "the battery-electric option has a significantly higher total cost of ownership than its combustion-engine counterpart." 

USPS under DeJoy appears to be locking in decades of fossil fuel consumption as the president's "Build Back Better" green plan appears to be faltering. Gasoline mail trucks are more reliable than electric ones, and ownership is cheaper. 

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