Dec 6 (Reuters) – Donald Trump’s transition workforce is contemplating canceling the U.S. Postal Service’s contracts to impress its supply fleet, as a part of a broader suite of government orders concentrating on electrical automobiles, in keeping with three sources accustomed to the plans.
Oshkosh shares fell by roughly 5% to 105.65 per share after the Reuters report.
In a press release on Friday, Oshkosh mentioned it has labored carefully with USPS to design and ship a modernized fleet with a versatile combine of electrical and gas-powered automobiles which have acquired early, constructive evaluations from mail carriers.
“Oshkosh is totally dedicated to our sturdy partnership with the USPS and appears ahead to persevering with to supply our postal carriers with dependable, protected, and sustainable trendy supply automobiles, at the same time as USPS’ wants proceed to evolve,” the corporate mentioned.
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 automobiles to construct one of many largest electrical car fleets within the nation by 2028.
The USPS is an autonomous federal company with its personal governing board, making severing the contract legally difficult. But Trump’s acknowledged coverage goals are poised to check the boundaries of government energy on a variety of points, from commerce to federal spending.
In a observe revealed on Friday, analysts from the funding banking agency Jefferies mentioned they do not see a complete cancellation as possible, however mentioned the combination of automobiles may shift away from EVs and towards fuel-powered.
“Given the necessity for the alternative of ageing gear, we’re assured that the USPS will probably be receiving new automobiles in 2025. The mixture of that order may probably 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 workforce didn’t remark instantly on plans for the USPS contract.
“President Trump will shield the liberty of Americans to drive whichever car they select, improve his powerful tariffs on Chinese-imported vehicles, and save the U.S. auto trade for generations to return. No coverage must be deemed official until it comes instantly from President Trump,” Trump transition workforce spokeswoman Karoline Leavitt mentioned in a press release.
In 2021, Biden issued an government order on EVs declaring that fifty% of all new passenger vehicles and light-weight vans could be zero-emission automobiles. To obtain that objective, Biden directed varied federal companies to undertake guidelines on new emission and gasoline requirements designed to hurry adoption of electrical automobiles.
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Reporting By Jarrett Renshaw; enhancing by Richard Valdmanis, Nick Zieminski, Deepa Babington and Jonathan Oatis
Our Standards: The Thomson Reuters Trust Principles.
