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US Govt Fleets To Switch to EVs, Stocks Jump

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View of United States Post Office delivery vehicle in Grand Ledge-Switch to EVs-ss-featured

As part of his Buy American program, President Joe Biden said that the US Government vehicle fleet will switch to EVs. Biden said that they would replace the entire federal fleet of cars, trucks, and SUVs with electric vehicles manufactured in the United States. This commitment is part of a  broader campaign promise to create a million new jobs in the American auto industry and its supply chains.

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“The federal government also owns an enormous fleet of vehicles, which we’re going to replace with clean, electric vehicles made right here in America by American workers, creating millions of jobs, a million autoworker jobs in clean energy, and vehicles that are net-zero emissions,” Biden said during the signing ceremony last Monday. 

Boon to EV Maker Manufacturers 

Once this program hits the ground, the US government re-fleeting could boost US automakers, particularly those with electric vehicles in development for passenger cars, commercial vans, and light trucks. The executive order closes loopholes of older “Buy American” programs as it aims to increase purchases of products made in the United States. As such, the order adjusted product thresholds and price preferences for local products. Also, it tightens the conditions that qualify products from holding the “Made in the USA” designation. 

Biden made the comments prior to signing the Made in America executive order, which places stricter rules on the federal government’s procurement practices. The government has existed “buy American” rules, which states that a certain amount of a product must be made in the U.S. for a purchase to qualify for a federal contract. Upon hearing the announcement, shares of electric-vehicle makers Workhorse and Lordstown went up by as much as 10%. Tesla also gained a little.

USPS Bidding 

According to General Services Administration reports, the US government currently holds  645,000 vehicles in its fleet. Among these vehicles, only 0.5%, or 3,215 vehicles are electric. 

Around 224,000 are passenger vehicles, while more than 412,000 are trucks. The US Postal Service operates around 35% of these vehicles, or 225,000. The USPS is currently sourcing for a replacement for their 180,0000 strong fleets of Grumman Long Life vehicles. These vehicles have logged over 25 years in service.  

The USPS contract does not require an EV submission, since it started the bidding process back in 2016. Due to the order to switch to EVs set by Biden, the USPS bidders may find themselves changing their specifications to reflect the EO requirements. Vehicle specs for USPS requirements remain confidential for forbidding reasons. However, only Workhouse reportedly submitted an all-electric proposal. Karsan/Morgan Olsen bid a plug-in hybrid while Oshkosh/Ford stayed with a combustion engine powered Transit van. Ford will introduce an EV version of the Transit, which may cross over to the USPS bid. GM, Ford Tesla, and Lordstown Motors will launch all-electric pickups in the next few years. They may find their way into government service.  

Not As Easy As it Seems

While the objective remains very well-meaning, it won’t be easy to get off the ground. Many federal vehicles are under lease programs. Getting them out of their contracts won’t be easy, or at the least won’t be immediate. In addition, the government will not have to deal with charging infrastructure and supply. Most of all, Biden already gave his preference for companies that support union jobs. 

Tesla, considered the dominant EV manufacturing company, charges higher for its vehicles. It also does not have unions among its workforce. Combined, these two factors may pose barriers to its federal bid attempts. Meanwhile, both Ford and GM are home to automotive worker unions but have yet to go all out on the electric vehicle front. Both companies are currently investing heavily to expand their EV lineup. 

Watch the Bloomberg Quicktake News reporting that President Joe Biden Biden says the U.S. will replace federal government vehicles with electric cars:

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Do you agree that the US Government fleet should switch to EVs? Would they prove to be a good long term investment? Let us know what you think about Buy American as it applies to government vehicles. Leave your comments below.

18 Comments

18 Comments

  • Avatar Jeff Woodbury says:

    Might sound good but the batteries have to be replaced after a few years and the cost is almost like buying a new car and not to mention the maintenance costs

  • Avatar Gary J Davis says:

    Start with the populations cars and planes. Go back to horses and buggies

  • Avatar Michael says:

    As it might cost more for batteries, the U.S. government and military comsums more oil and gas than any one… so if we can get them into using what they can for electric, that should help out save some of our oil reserves…

  • Avatar bruce says:

    The only ZERO EMISSIONS energy sources are solar, hydroelectric, and wind (if you don’t count the production methods for their construction and delivery). Fully 76% of our National electric supply comes from sources that emit some type of emissions. Forcing electric is senseless as the costs are higher and creating electricity causes emissions. For electric cars we just ‘feel better’ because we don’t see or smell the source of the generation.

  • Avatar Melanie Clark says:

    EV are not better than gas or diesel powered vehicles. Batteries need recharging from where does the electricity come? Batteries wear out and are expensive to replace.

  • Avatar Bob says:

    Where do you think the electricity comes from to charge these vehicles ? Generators that run on Gas & Oil. Not to mention how much stock did the Biden’s buy in the battery company’s and generator plants

  • Avatar Jay says:

    What a great idea. That is if you fail to consider the infrastructure required to charge all these vehicles. What cost is going to be passed down to upgrade all the facilities to be able to handle the charging of the vehicles. From breaker panels to actual power grids themselves. Its a great idea untill you look at the whole picture.

  • Avatar gordon curtis arnold says:

    In office a week and writing checks no one will be able to cash. Here is an idea make air force 1 total electric, get a great big rubber band as back up.

  • Avatar Anonymous says:

    Thats right what is giving us the electricity for the electric vehicles

  • Avatar Anonymous says:

    horse like cows schitt that to pollutes the air ask bernie and cortez

  • Avatar Susan Adamson says:

    No electric car!! Waste

  • Avatar Grant Barton says:

    biden is no friend to the USA, but a enemy

  • Avatar don says:

    look to see who in congress has stocks and options in the ev and battey market. this will cost too much, upkeep will be insane, and the power to recharge still comes from plants using fossil fuels,
    again its a misdirection and distraction
    and i bet the batteries are made by a Chinese company even if its in the united states, which a lot of them are

  • Avatar Myles says:

    I have read the above posts and find there are intelligent folks reading the web page. They really hit the nail on the head. Look at the whole process and discover it is not what it is being presented as. When you look at the plusses and minuses Better to stay as we are and find other avenues to reduce emissions if it is really necessary. The proponents might want to look at the earths temperature history. They might have there eyes opened. But that’s not the dems and medias play book

  • Avatar MICHIAL LINTHICUM says:

    It is a pipe dream of lies and unproven facts. Biden said he was going to create jobs, He just laid off 42,000 Americans. So he can help socialist companies get wealthy.

  • Avatar William Phillips says:

    There sure is a lot of BS going around this country and converting “just” the USPS alone will take years and years and years. Fact; there are 228,000 USPS vehicles. It would take approximately 7 billion dollars to get started on those. With all the monies the dems want to keep spending, my question is where is the money coming from? This sure does sound like a major insider trading charge and anyone holding a government position nor any family member should ever be allowed to buy stock in any EV company. I feel that attention is being diverted from what issues that should be taking priority; covid and getting businesses reopened so people can actually earn a living. My major concern is, how do we meet all the electric demands that come with this EV territory. Seems like we’ll be burning more fossil fuels to produce electricity. Pretty sure this will negate any and all environmental benefits of an EV revolution. We are putting the cart before the horse (so to speak).

  • Avatar Terri says:

    If the military switch to electric vehicles then they will be easier wiped out. Any person that thinks this is a good idea. Then maybe you should serve while using the electric vehicles. Get your head out of your third point of contact that’s our sons and daughters our moms and dads why would you want to do this

  • Her is the problem I see our leaders make. Deal with company’s and they all no it’s going to happen before hand like Nancy p. She buys stock in a company that our goverment is buying electric cars so she gets insider trading . I thought that was against the law just look at history carer politians can be the most influential people on markets so that is why the profit they no before hand they can never lose the system they have is set up for them not the american people fired any one how is making all kinds of money in our capital they are there to serve us not dictate to use

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