US Postal Service Advances with Electric Vehicle Fleet Despite Political Opposition
USA, Wednesday, 11 December 2024.
The US Postal Service persists in electrifying its fleet against opposition, with plans to achieve 75% electrification despite potential contract cancellations by the Trump transition team.
Current Political Standoff
As of December 2024, a significant political battle is unfolding over the USPS’s electric vehicle initiative. The Trump transition team is actively considering canceling contracts with Ford and Oshkosh Defense for electric delivery vehicles [1][2], while Postmaster General Louis DeJoy maintains that the electrification plan will proceed unless Congress intervenes [1]. The USPS received $3 billion in 2023 as part of a broader climate bill, with $1.2 billion specifically earmarked for electric vehicles, targeting the acquisition of 66,000 EVs by 2028 [1].
Implementation Progress and Challenges
The USPS has already begun implementing its electrification strategy, with significant infrastructure developments underway. An initial batch of 14,000 chargers from Siemens, ChargePoint, and Blink is currently in production [2]. The service operates a massive fleet of approximately 217,000 delivery vehicles [1], serving over 135 million addresses. For 2025, USPS projects a 50-50 split between electric and internal combustion engine vehicles, with plans to transition to 100% electric vehicle purchases by 2026 [1].
Economic and Employment Impact
The electrification initiative has significant economic implications, particularly in manufacturing regions. In Spartanburg County alone, Oshkosh Defense created over 1,000 jobs through a $155 million investment [5]. The company’s contract with USPS, valued at $2.98 billion, includes the production of 50,000 next-generation vehicles [5]. Representative William Timmons has warned that canceling these contracts would be ‘detrimental to South Carolina’ and could discourage future domestic manufacturing investments [5].
Financial Outlook and Future Plans
The USPS faces significant financial challenges, reporting a $9.5 billion net loss in fiscal year 2024, with projected losses of $6.5 billion for 2025 [3]. Despite these challenges, DeJoy maintains that the EV purchase plan makes business sense for USPS [1]. The service’s comprehensive electrification strategy is part of a larger $40 billion operational update [1], though the timeline for achieving 75% fleet electrification remains unspecified [alert! ‘specific completion date for 75% electrification target not provided in sources’].