Oshkosh Corp Stock Drops Amid USPS Contract Uncertainty

Shares of Oshkosh (NYSE: OSK) Corp fell 5% due to potential cancellations of the USPS electric mail truck contract by the upcoming Trump administration.

Ford (NYSE: F) also faced negative impacts yet saw a 0.4% increase on Friday despite the news.

Executive Orders Considered

According to Reuters, Trump's transition team is considering several executive orders that could reverse USPS plans to electrify its delivery fleet. This move aligns with Trump’s campaign promise to roll back Biden's climate policies that focus on reducing carbon emissions in transportation.

Trump’s Position on Climate Policies

Set to take office on January 20, Trump has criticized Biden’s climate initiatives as superfluous and economically damaging. His team is reviewing options to revoke significant contracts with companies like Oshkosh and Ford, which cover the purchase of tens of thousands of electric delivery trucks and charging infrastructure.

Congressional Funding

In 2023, Congress allocated $3 billion to the USPS under a $430 billion climate package aimed at electric vehicle (EV) purchases. The USPS seeks to acquire about 66,000 electric vehicles by 2028, creating one of the largest EV fleets in the U.S. Oshkosh is expected to provide approximately 45,000 vehicles, with Ford and others supplying the remainder. The initial 14,000 charging stations will come from firms like Siemens, ChargePoint, and Blink.

Legal Challenges Expected

Even though the USPS operates independently, the Trump administration may attempt to leverage executive authority to terminate contracts. Neither Oshkosh nor Ford have publicly commented on the potential cancellation, and the USPS has not issued a response.

Transition Team's Statement

The Trump transition team hasn’t clarified plans regarding the USPS contract. However, spokeswoman Karoline Leavitt emphasized, "President Trump will protect the freedom of Americans to drive whichever vehicle they choose, enhance his tough tariffs on Chinese-imported cars, and save the U.S. auto industry for generations to come. No policy should be deemed official unless it comes directly from President Trump."

Biden’s Executive Order

In contrast, President Biden’s 2021 executive order aimed for 50% of new passenger cars and light trucks sold to be zero-emission vehicles, directing federal agencies to create new emissions and fuel standards to foster electric vehicle adoption.

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