Oshkosh Protection to construct U.S. Postal automobiles; Workhorse shares slide By Reuters


© Reuters. An Oshkosh truck utilizing the TerraMax autonomous driving system drives alongside a mud-soaked take a look at course outdoors of Pittsburgh

By David Shepardson

WASHINGTON (Reuters) – The U.S. Postal Service (USPS) mentioned on Tuesday it’s going to award a multibillion-dollar, 10-year contract to Oshkosh (NYSE:) Protection to fabricate a brand new technology of postal supply automobiles.

Below the preliminary $482 million funding, Oshkosh Protection, a unit of Oshkosh Corp, will finalize the manufacturing design, testing and automobile tooling needed previous to automobile manufacturing.

The contract, which may very well be price greater than $6 billion in whole, permits for supply of between 50,000 to 165,000 of the automobiles over 10 years that will likely be a mixture of inner combustion-powered and battery-electric automobiles. Oshkosh had teamed up with Ford Motor (NYSE:) Co on its proposal primarily based on a Transit van.

The present gas-guzzling USPS supply automobiles are practically 30 years previous on common. An audit report final yr mentioned USPS spent $5,000 alone per supply automobile yearly on upkeep prices.

Oshkosh shares rose about 6.1% on the information. Shares of Workhorse Group Inc, a shedding bidder that sought to construct electrical solely automobiles, have been briefly halted and misplaced nearly half their worth after the information.

Colliers Securities analyst Michael Shlisky mentioned Workhorse’s lack of the contract is “actually dangerous information for current Workhorse traders.”

USPS, which started planning to exchange the present fleet in 2015, mentioned the brand new automobiles may very well be retrofitted later with “electrical automobile applied sciences.”

The USPS fleet has greater than 230,000 automobiles, together with 190,000 that ship mail.

New USPS automobiles will start deliveries in late 2023 and embrace air-con and heating, improved ergonomics, and superior automobile security know-how together with air luggage and 360-degree cameras. They are going to be capable of carry extra cargo and higher accommodate larger package deal volumes.

Final month, President Joe Biden vowed to exchange the U.S. authorities’s fleet of roughly 650,000 automobiles with electrical fashions. The White Home didn’t reply to a request for touch upon the USPS contract determination.

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