WASHINGTON (Reuters) – U.S. Postmaster General Louis DeJoy told lawmakers on Wednesday the Postal Service was committed to having electric vehicles make up 10% of its next-generation fleet as part of its multibillion-dollar plan to retire its 30-year-old delivery vehicles.
The U.S. Postal Service said on Tuesday it had awarded a $482 million contact to Oshkosh Defense to finalize production for the next-generation postal vehicles.
The contract, which could be worth more than $6 billion in total, allows for delivery of between 50,000 and 165,000 of the vehicles over 10 years, which will be a mix of internal combustion-powered and battery-electric vehicles.
Last month, President Joe Biden vowed to replace the U.S. government’s fleet of roughly 650,000 vehicles with electric models.