WASHINGTON — The U.S. Postal Assistance (USPS) said on Tuesday it will award a multibillion-dollar, 10-calendar year contract to Oshkosh Defense to manufacture a new technology of postal shipping automobiles.
Less than the first $482 million financial commitment, Oshkosh Defense, a device of Oshkosh Corp, will finalize the generation layout, testing and automobile tooling required prior to car or truck creation.
The agreement, which could be truly worth additional than $6 billion in whole, allows for shipping of between 50,000 to 165,000 of the autos around 10 decades that will be a mix of inside combustion-powered and battery-electric powered automobiles. Oshkosh experienced teamed up with Ford Motor Co. on its proposal based on a Transit van.
The recent gas-guzzling USPS supply motor vehicles are practically 30 many years old on ordinary. An audit report previous year explained USPS put in $5,000 alone for each shipping and delivery vehicle per year on upkeep expenditures.
Oshkosh shares rose about 6.1% on the news.
Shares of Workhorse Group, a shedding bidder that sought to develop electrical only vehicles at the former GM plant in Lordstown, Ohio, have been briefly halted and misplaced almost half their price immediately after the information.
Colliers Securities analyst Michael Shlisky mentioned Workhorse’s loss of the agreement is “definitely lousy information for latest Workhorse buyers.”
USPS, which commenced planning to swap the recent fleet in 2015, stated the new automobiles could be retrofitted later on with “electrical car or truck technologies.”
The USPS fleet has additional than 230,000 vehicles, together with 190,000 that provide mail.
New USPS automobiles will commence deliveries in late 2023 and include air conditioning and heating, improved ergonomics, and innovative vehicle safety technologies like air baggage and 360-diploma cameras. They will be ready to carry additional cargo and far better accommodate greater package volumes.
Final thirty day period, President Joe Biden vowed to switch the U.S. government’s fleet of about 650,000 cars with electric designs. The White Household did not answer to a ask for for remark on the USPS deal choice.