Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oshkosh Defense to build U.S. Postal vehicles; Workhorse shares slide

Stock MarketsFeb 23, 2021 06:02PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. An Oshkosh truck using the TerraMax autonomous driving system drives along a mud-soaked test course outside of Pittsburgh

By David Shepardson

WASHINGTON (Reuters) - The U.S. Postal Service (USPS) said on Tuesday it will award a multibillion-dollar, 10-year contract to Oshkosh (NYSE:OSK) Defense to manufacture a new generation of postal delivery vehicles.

Under the initial $482 million investment, Oshkosh Defense, a unit of Oshkosh Corp, will finalize the production design, testing and vehicle tooling necessary prior to vehicle production.

The contract, which could be worth more than $6 billion in total, allows for delivery of between 50,000 to 165,000 of the vehicles over 10 years that will be a mix of internal combustion-powered and battery-electric vehicles. Oshkosh had teamed up with Ford Motor (NYSE:F) Co on its proposal based on a Transit van.

The current gas-guzzling USPS delivery vehicles are nearly 30 years old on average. An audit report last year said USPS spent $5,000 alone per delivery vehicle annually on maintenance costs.

Oshkosh shares rose about 6.1% on the news. Shares of Workhorse Group Inc, a losing bidder that sought to build electric only vehicles, were briefly halted and lost almost half their value after the news.

Colliers Securities analyst Michael Shlisky said Workhorse's loss of the contract is "really bad news for recent Workhorse investors."

USPS, which began planning to replace the current fleet in 2015, said the new vehicles could be retrofitted later with "electric vehicle technologies."

The USPS fleet has more than 230,000 vehicles, including 190,000 that deliver mail.

New USPS vehicles will begin deliveries in late 2023 and include air conditioning and heating, improved ergonomics, and advanced vehicle safety technology including air bags and 360-degree cameras. They will be able to carry more cargo and better accommodate higher package volumes.

Last month, President Joe Biden vowed to replace the U.S. government’s fleet of roughly 650,000 vehicles with electric models. The White House did not respond to a request for comment on the USPS contract decision.

Oshkosh Defense to build U.S. Postal vehicles; Workhorse shares slide
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Kaveh Sun
Kaveh Sun Feb 23, 2021 10:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Usps uses Kei car. Kei cars cost less than 5k in most countries. usps pays 5k yearly to fix a car is a tax money waste.
ZS Beck
ZS Beck Feb 23, 2021 8:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Probably will be better than Horsecrap
TheGamingFoxy FoxyGamer
TheGamingFoxy FoxyGamer Feb 23, 2021 7:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
OMG , an amored USPS truck on the street soon. I hope rambo deliver my mails soon. 🤣
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email