The United States Postal Service (USPS) is looking to improve its fleet of vehicles. A contract in 2022 was met with backlash as it focused less on electric vehicles than expected, something it is looking to improve going forward.
USPS recently awarded a number of postal truck contracts, some of which addressed this issue.
What Happened: In 2022, the USPS announced a contract award with Oshkosh Corp OSK valued at around $3 billion for 50,000 next-generation delivery vehicles.
The contract had Oshkosh getting a 10-year deal to produce up to 165,000 vehicles beginning in 2023. The initial 50,000 vehicle deal included only 10,019 battery-powered electric vehicles.
The backlash came from several Congress members and the public for the lack of electric vehicles to improve costs and lower emissions from the USPS vehicles.
Workhorse Group Inc WKHS, which bid on the USPS contract with its electric vehicles, saw shares fall after losing out to Oshkosh. Workhorse shares rebounded in 2022 on the heels of the USPS announcing it was looking to purchase more electric vehicles.
USPS Is Electrifying: The USPS announced several new electrification initiatives this week for the “nation’s largest federal fleet.”
The USPS is purchasing 9,250 commercial-off-the-shelf battery electric vehicles and 14,000 electric vehicle charging stations. The total investment in vehicles will now be around $9.6 billion, with $3 billion coming from the Inflation Reduction Act.
“We are moving forward with our plans to simultaneously improve our service, reduce our cost, grow our revenue and improve the working environment for our employees,” Postmaster General Louis DeJoy said. “Electrification of our vehicle fleet is now an important component of these initiatives.”
The Postal Service said funds through 2028 are expected to help with the purchase of 106,000 delivery vehicles, including 66,230 electric delivery vehicles.
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The Contract Winners: The USPS press release highlighted Ford Motor Company F as one of the winners in the new round of contract wins.
“After a competitive search, the Postal Service awarded a contract to purchase a total of 9,250 Ford E-Transit Battery Electric Vehicles,” the release reads.
Delivery of the vehicles is expected to start in December 2023.
The USPS also needs gas-powered vehicles and The Associated Press reported the USPS will also buy another 9,250 internal combustion vans from Fiat Chrysler, a unit of Stellantis NV STLA. The Fiat Chrysler vehicles will begin deliveries in November.
Together the deals for vehicles from Ford and Stellantis are worth $1 billion.
The Associated Press reported the winners of contracts for a total of $260 million for electric vehicle charging stations were Blink Charging Co BLNK, Siemens AG SIEGY and Rexel USA Energy Solutions. The charging stations will be installed at Postal Service facilities starting in the third quarter of 2023.
Blink Charging CEO Michael Farkas highlighted his company's contract during an appearance on Benzinga TV Wednesday.
While there were several winners from the new contracts announced, Oshkosh could be on watch as it has already landed a huge contract from the USPS, but could miss out on additional orders as the USPS looks elsewhere for electric vehicles.
Read Next: Oshkosh Bags $2.9B Order From USPS
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