Why EV giant with a contract for 100k USPS trucks has suddenly offered to convert them to gas

The company behind the United States Postal Service’s all-electric mail trucks has said it would be prepared to switch to gas vehicles. 

Oshkosh Corp., known for providing the ‘Duck’ mail trucks, has stated that it is prepared to change direction if the USPS reduces orders for electric vehicles during a potential second term under Trump.

Trump, who takes office on January 20, has long criticized funding brought in by the Biden administration to transition to an electric mail fleet. 

The Inflation Reduction Act (IRA) introduced by President Biden allocates $3 billion over ten years to enable the Postal Service to transition to fully electric vehicles, including trucks and charging stations.

USPS said in October last year that it plans to buy more than 100,000 mail trucks through 2028, of which at least 62 percent will be EVs. 

Oshkosh has received its first order from USPS for 50,000 electric trucks, valued at $2.98 billion.  

But John Pfeifer, CEO of Oshkosh, said the company would be prepared to make the switch back to gas if necessary.  

‘We will comply with their wishes – whether it is supplying gas-powered or electric vehicles,’ he mentioned during an interview at the CES trade show in Las Vegas, as reported by Bloomberg.

‘A new Congress could come in and repeal, I guess, part of the IRA that hasn’t been spent.’

Oshkosh Corp., which provides the so-called 'Duck' mail trucks, has said it is prepared to U-turn if USPS cuts back orders for EVs under the second Trump term

Oshkosh Corp., which provides the so-called ‘Duck’ mail trucks, has said it is prepared to U-turn if USPS cuts back orders for EVs under the second Trump term

Trump’s team is reportedly looking at whether it can get out of USPS contracts with Oshkosh and Ford, Reuters has reported.

Postmaster General Louis DeJoy, meanwhile, told Bloomberg last month that the agency needs to replace ageing mail trucks, but he has not heard from the incoming administration as to whether it plans to buy EVs or not. 

USPS confirmed to DailyMail.com that it had no new information to share at this time. 

Pfeifer said the company has also not heard from the incoming administration or from USPS about shifting away from electric trucks.

He said EVs account for almost three quarters of the delivery trucks the Postal Service has ordered from Oshkosh.

While electric trucks cost more up front than gas-fueled versions, their advantage is lower operating costs for maintenance and refueling, he added. 

‘The Postmaster General knows that’s one of the keys to him turning around the financial performance of the postal service because the running costs are so much lower,’ he told Bloomberg.

'We'll do what they want us to do - supplying either gas or electric,' said Oshkosh CEO John Pfeifer in an interview at the CES trade show in Las Vegas

‘We’ll do what they want us to do – supplying either gas or electric,’ said Oshkosh CEO John Pfeifer in an interview at the CES trade show in Las Vegas

Trump, who takes office on January 20, has long criticized funding brought in by the Biden administration to transition to an electric mail fleet

Trump, who takes office on January 20, has long criticized funding brought in by the Biden administration to transition to an electric mail fleet

President Biden's Inflation Reduction Act (IRA) provided $3 billion over a decade for the Postal Service to become all-electric (Pictured: Biden test drives a GMC Hummer EV)

President Biden’s Inflation Reduction Act (IRA) provided $3 billion over a decade for the Postal Service to become all-electric (Pictured: Biden test drives a GMC Hummer EV)

USPS has brought in several changes since 2021 as part of the financially beleaguered service’s plan to avoid $160 billion in projected losses over a decade. 

Like other postal services across the world, it is facing headwinds as fewer people send physical mail.

The service, like many other independent agencies and government departments, is likely waiting with baited breath to see what steps the President-elect takes when he is sworn into office.

Republican House Speaker Mike Johnson has already said that the IRA, Biden’s landmark signature climate law, would be an early target for the new Congress.

Trump, who has been an outspoken critic of EVs, said last year that no state would be allowed to ban gas-powered cars if he won a second term in office.

If the EV component of Oshkosh’s contract with USPS was reduced to zero, it would likely mean a 50 cent to 60 cent per share hit to the company’s 2026 and 2027 earnings per share, Citi analyst Kyle Menges has estimated, Bloomberg reported.

You May Also Like
Missing Los Angeles firefighter's body found by divers off California coast

Rescuers recover body of missing firefighter off California shoreline

The body of a Los Angeles firefighter who went missing while off…
Lithuania deploys dogs in search for final missing US soldier after vehicle sank in swamp

Lithuania uses dogs to find last missing American soldier after their vehicle sank in a swamp

The search for the fourth and final missing U.S. soldier whose armored…
What is tuberculosis? Chicago area's Waukegan High School sees case of TB, Lake County Health Department says

Understanding Tuberculosis: Case Detected at Waukegan High School in Chicago Area, Confirmed by Lake County Health Department

CHICAGO (WLS) — A case of tuberculosis occurred at the freshman/sophomore campus…
The unusual suburbs across the US where buyers are sparking major bidding wars over homes

Surprising U.S. Suburbs with High Demand for Homes Leading to Intense Bidding Wars

The hottest real estate markets of 2025 are surprisingly in the Midwest suburbs. Cities…
CBP releases March border crossing numbers, marking lowest to date ever recorded

“CBP Announces Record-Low Border Crossing Numbers for March”

The latest U.S. Customs and Border Protection (CBP) figures indicate that in…
Tuesday Morning Minute: Won't Get Fooled Again

New post: Avoid Being Deceived Again – Tuesday Morning Recap

TOP O’ THE MORNIN’ Red-Hot at RedState  Although it’s good to have…
What’s next in the Russia, Ukraine ceasefire talks?

Germany reports that negotiations with the US on Russia-Ukraine conflict are at a standstill, while China holds a contrasting view

There is growing tension surrounding the U.S.’s attempts to mediate a resolution…
Facts First: Scott Jennings Puts Cory Booker Speech Record in Perspective With Some Hard Truths for Dems

Presenting Information Clearly: Scott Jennings Highlights Cory Booker’s Speech History With Some Candid Realities for Democrats

During the Democrat Stuntapalooza in the first two months of President Donald…
Charges dropped against Robert Johnson 29 years after wrongful conviction for Chicago murder

Robert Johnson acquitted after 29 years of wrongful imprisonment for Chicago murder

CHICAGO (WLS) — It has been one month since a Chicago man…
Employees Locked Out and Executives Sent to Indian Reservations As the Purge at HHS Hits Its Stride

Staff Unable to Access Premises and Senior Managers Relocated to Native American Lands During Ongoing Clean-up at Health Department

The Department of Health and Human Services (HHS) began the first phase…
Harrison Ford indulges in very rare PDA with Calista Flockhart as millionaire pair brave subway

Harrison Ford and Calista Flockhart show rare PDA while riding the subway

Harrison Ford indulged in a rare public display of affection with his…
Three huge stars turn down hosting gig on TJ and Amy's old GMA3 show amid fears it's CURSED

“Top Celebrities Decline Hosting Opportunity on Former GMA3 Show Due to Superstitions”

Good Morning America’s megastar hosts all turned down the chance to host…