President-elect Donald Trump is considering canceling the United States Postal Service (USPS) contract to electrify its delivery fleets, a move that could have significant consequences for automakers like Ford Motor Company.
Per a report from Reuters, the Trump administration plans to walk back President Joe Biden’s plans to electrify transportation in the U.S. The Biden administration implemented its decarbonization agenda in an effort to fight climate change, but Trump has indicated that he believes benefits of said agenda do not outweigh its potentially damaging effects on the U.S. economy. As such, the Trump administration is considering terminating the contract with Oshkosh Defense and Ford, which would have supplied the USPS with tens of thousands of all-electric delivery vehicles and charging stations.
The USPS was granted $3 billion as part of the $430 billion climate bill, applicable toward the purchase of EVs and charging stations. With the investment, the postal service intends to buy approximately 66,000 EVs by 2028. Approximately 45,000 of those units would be purchased from Oshkosh, while the rest would be supplied by other automakers, including Ford.
If the Trump admin does indeed cancel the contract, Ford will take a hit in more ways than one. For instance, USPS ordered over 9,000 units of the Ford E-Transit to flesh out its fleet, as the vans offer more cargo capacity than the Grumman LLV currently used as the service’s primary mail carriers. Additionally, The Blue Oval supplies parts to Oshkosh for use in its Next Generation Delivery Vehicle (NGDV) models, including the steering wheel and gauge cluster.
In addition to the USPS contract cancelation, other Trump administration policies could have a direct effect on Ford’s EV business. For instance, Trump is expected to discontinue the $7,500 EV Tax Credit, which has been a staple incentive for EVs since 2022, although Ford has stated that it will not change its EV plans if this ends up coming to fruition. Meanwhile, a good amount of FoMoCo’s production occurs south of the border, and Trump’s planned Mexican tariff could greatly affect Ford in that regard, since it’s the second largest producer of vehicles in Mexico that are sold in the U.S.
It's one of several new carbon parts for the pony car.
A year later than previously expected.
Expanding that lineup yet again.
A way to potentially help avoid obstructions in wet weather.
Increasing a bit compared to the past couple of quarters.
A massive project, but one certainly worth undertaking.
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Despite not being a fan of "The Donald", I do see an opportunity to rid ourselves of a decent amount of government waste, IN SOME AREAS. Some things being put forth by Elon&Co are ludicrous, but this is not. USPS going EV is absurd. As are the mandatory breathalizers being proposed. Ditch 'em both.
How could you not be a fan of the great DJT?! Staying on topic, getting rid of the EV subsidies, and canceling this contract are almost a guarantee, and a good thing. Hopefully Ford has backup plans since the American people won't be subsidizing bad business, or business in general, anymore.
Dividing 3 billion by 66,000 ( the trucks ) = $45,454.55 for each truck with the charging station. Average mileage driven by a carrier is 30 miles/day. Even the Nissan Leaf can cover this distance easily! Let's go to 2028 and look at the full fleet of 66,000 EVs. Even with the low mileage, the oil and filter should be changed once a year. Let's say the oil is $650/55 gallons ( Sunoco 5w 30 ). With 5 qts/truck that would yield 11 oil changes. They would require 6.,000 55 gallon drums/year which equals $3,900,00/year ... plus oil filters!
why aren't you a fan? seems like President Trump is looking out for the American worker. America First!!!
Are you a moron? USPS vehicles are the perfect thing for EVs. Set routes that are usually low mileage and hours and hours of downtime.
Yeah, I think this is less about having EVs and more about what will the Post Office look like post DOGE.
Merry Christmas Ford!
Is it just me or does it seem like this site is ran by liberals with TDS.
WHAT A JOKE!!! OUR POST OFFICE IN CALIFORNIA JUST NEEDS SOME NEW VEHICLES TO REPLACE THE ONES THEY BEEN USING SINCE I WAS A KID IN 1965! EV'S???? NOT SURE ABOUT THAT, I JUST WANT TO NO LONGER HAVE A "OIL SLICK" IN MY FRONT CURB AREA FROM THESE P.O.S. VAN'S THEY ARE DRIVING NOW. WORN OUT J U N K!!! 👀...
That sounds like a state of California problem. Blame your incompetent governor
Just give the letter carriers air conditioning and a reasonable work load and they will be happy. How do I know? Because I am a Youtube expert.
These things cost over $84,000 EACH. The Post Office can't support it self as it is. Over paid employees, over paid pensions, no one ever gets fired for a poor job. It's time for the USPS to be run by a PRIVATE company because they have WORTHLESS leadership!
You have no idea what you are talking about. I work for P.O. New hire wages are considered poverty. I have 26 years in and make $36 an hour. If you think that is overpaid I can tell you where to apply. Let’s see how long you will last. No private company would want this since we are required to deliver to every address. A lot of them are money losers but we have no choice.
I don't disagree with your sentiment on USPS as a whole, but what's your source for the cost of each Next-Gen Delivery Vehicle? Surely they can't cost $84,000 each. Can you point me to the article where this unit cost is detailed?
Will Donnie cancel any of his boyfriends Elon's government contracts?
I think Ford is at fault here in totally buying into the electric vehicle craze.
The usps is a joke, everyone has horror stories of important mail being lost never again to be found. Or the letter that took 3 months to go 25 miles.
Close the usps down
Oh yea that is a good one.