By Sam Boughedda
Investing.com -- Workhorse Group, Inc. (NASDAQ:WKHS) and GreenPower Motor Company Inc. (NASDAQ:GP) announced the signing of a multi-year supply agreement Tuesday.
The agreement will see the electric vehicle companies facilitate the manufacturing and delivery of medium-duty Class 4 step vans into the North American market.
Over a 21-month schedule, GreenPower will deliver 1,500 EV Star cab and chassis to Workhorse starting in July 2022. The chassis will be used to produce Workhorse’s new Class 4 W750 step van line, which is expected to enter production in the third quarter of 2022.
Workhorse said the agreement includes deposits based on delivery thresholds and also contains a renewal option.
Workhorse will have exclusive rights in the U.S. and Canada to sell the vans — under the Workhorse brand — based on the GreenPower-supplied base vehicle. They will also offer a Workhorse after-sales and support service.
Workhorse is trading 7% above Monday's close, while GreenPower is down 2.13% despite an initial rise.