The postal service goes green and buys 9,000 electric vans

The Ford E-Transit Battery EVs, which the postal service is expected to take delivery of in December this year, are part of a plan to electrify 75% of its service trucks over the next five years, the agency said in a statement Tuesday.

“We continue with our plans to simultaneously improve our service, reduce our costs, increase our revenue and improve the work environment for our employees,” Postmaster General Louis DeJoy said in the statement. “The electrification of our vehicle fleet is now an important part of these initiatives.”

In addition to the 9,250 Ford vans being manufactured at a Ford plant in Kansas City, Missouri, the agency said it is awarding contracts to purchase about 14,000 charging stations.

Ford had no immediate comment. The automaker’s shares were flat in aftermarket trading.

The deal marks a reversal for the Post, which announced in early 2022 that it would replace its fleet of red, white and blue vans with mainly petrol-powered models from Oshkosh Corp. to want to replace. That was a blow to President Joe Biden’s climate agenda and an offer from startup electric vehicle maker Workhorse Group Inc., which had been bidding for the contract.

Following outrage from congressmen and environmentalists, and an infusion of $3 billion in funds from the Inflation Reduction Act signed by the Biden administration, the agency reversed course in December and unveiled a $10 billion plan to purchase battery-powered ones vehicles before.

This replacement plan means the Post still has to purchase 9,250 internal combustion engine models “to meet urgent vehicle needs,” it said. The agency expects a “funding commitment” through 2028 to purchase a total of 66,230 electric delivery trucks as part of an overall expansion of 106,000 new vehicles for its delivery fleet.