WASHINGTON — The U.S. Postal Company (USPS) reported on Tuesday it will award a multibillion-dollar, 10-calendar year contract to Oshkosh Defense to manufacture a new era of postal delivery motor vehicles.
Under the original $482 million expense, Oshkosh Defense, a unit of Oshkosh Corp, will finalize the output style and design, tests and motor vehicle tooling vital prior to car production.
The agreement, which could be worthy of extra than $6 billion in overall, enables for shipping of amongst 50,000 to 165,000 of the vehicles about 10 decades that will be a blend of inside combustion-run and battery-electric cars. Oshkosh experienced teamed up with Ford Motor Co. on its proposal primarily based on a Transit van.
The present gasoline-guzzling USPS shipping and delivery cars are approximately 30 a long time aged on normal. An audit report previous calendar year mentioned USPS used $5,000 on your own per shipping and delivery car annually on maintenance charges.
Oshkosh shares rose about 6.1% on the information.
Shares of Workhorse Group, a losing bidder that sought to make electric powered only automobiles at the former GM plant in Lordstown, Ohio, had been briefly halted and lost virtually 50 % their worth immediately after the information.
Colliers Securities analyst Michael Shlisky mentioned Workhorse’s reduction of the deal is “seriously undesirable news for modern Workhorse traders.”
USPS, which commenced arranging to replace the existing fleet in 2015, claimed the new autos could be retrofitted later on with “electric powered auto systems.”
The USPS fleet has much more than 230,000 automobiles, which include 190,000 that produce mail.
New USPS autos will start off deliveries in late 2023 and contain air conditioning and heating, enhanced ergonomics, and state-of-the-art vehicle safety technological innovation such as air bags and 360-degree cameras. They will be ready to have a lot more cargo and superior accommodate higher bundle volumes.
Past month, President Joe Biden vowed to change the U.S. government’s fleet of approximately 650,000 automobiles with electrical models. The White Property did not answer to a ask for for remark on the USPS agreement conclusion.