Trump's Transition Team Considering Undoing USPS's Contracts With Ford, Oshkosh For Electrifying Fleet: Report (Updated)

Editor’s Note: This story has been updated with a statement from Oshkosh.

President-elect Donald Trump‘s transition team is reportedly considering canceling the U.S. Postal Service’s (USPS) contracts aimed at electrifying its delivery fleet.

What Happened: The move could be unveiled in the starting days of Trump’s new administration, Reuters reported, citing multiple sources familiar with the matter.

The transition team is reviewing how it can undo the postal service’s multiple, expensive contracts including with Ford Motor Co (NYSE:F) and Oshkosh (NYSE:OSK) for battery electric delivery trucks, the report said. Breaking the contracts would be legally challenging, Reuters noted, given that the federal agency has its own governing board.

“Since we were selected to fulfill the NGDV (Next Generation Delivery Vehicles) contract in 2021, Oshkosh and the USPS have worked closely together to design and deliver a modernized fleet with a flexible mix of American-made electric- and gas-powered vehicles that will connect every home and business across the country. New vehicles are in service today, which have received overwhelmingly positive feedback from Postal Carriers, and we remain on track to meet all delivery deadlines,” Oshkosh told Benzinga in an emailed statement.

Ford, meanwhile, said it will not comment on stories related to customers’ business proceedings.

USPS, however, did not respond to Benzinga’s request for comment.

Why It Matters: The U.S. Congress gave the USPS $3 billion in 2023 to buy EVs and charging infrastructure. The federal agency is planning to buy around 66,000 electric vehicles by 2028.

Trump, during his election campaign, had said that he would roll back the Biden administration’s push towards electrification.

Reuters previously reported that his transition team is also planning to kill $7500 in consumer tax credit on the purchase of electric vehicles.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

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Photo courtesy: USPS