The USPS said on Tuesday it’ll award a multibillion-dollar 10-year contract to Oshkosh Defense to produce a fresh generation of postal delivery cars.
A unit of Oshkosh Corp, will finalize the manufacturing design, evaluation and automobile tooling necessary prior to automobile manufacturing under the initial $482 million investment, Oshkosh Defense. The price that is per-vehicle maybe not disclosed.
The contract, which may be worth a lot more than $6 billion as a whole, allows for distribution of between 50,000 and 165,000 associated with the automobiles over decade, which will be a variety of interior combustion-powered and cars being battery-electric.
Oshkosh formerly teamed up with Ford engine Co on its proposal that includes an early on prototype centered on a Transit van. Ford declined to comment and Oshkosh declined to state what role, if any, Ford played in winning the agreement.
John Bryant, Oshkosh Defense’s president, stated in a meeting with Reuters that the winning vehicle “is not just a Ford Transit … it is a purpose-built vehicle.”
The existing USPS that is gas-guzzling distribution are almost 30 years old an average of. An review report year that is final USPS spent $5,000 alone per delivery vehicle on yearly maintenance costs.
“This is simply light years in front of the vehicle that is current” Bryant said.
Oshkosh shares shut 6.1percent higher in the news. Stocks of Workhorse Group Inc, a bidder that is losing desired to create electric-only automobiles, had been fleetingly halted and lost almost half their value.
Colliers Securities analyst Michael Shlisky said Workhorse’s lack of the agreement is news that is “really bad current Workhorse investors.”
USPS started planning to replace the fleet that is present 2015. Bryant said the combustion that is internal might be retrofitted later on as battery electric vehicles.
The USPS fleet has a lot more than 230,000 automobiles, including 190,000 that deliver mail. The USPS said on Tuesday it’ll award a multibillion-dollar 10 year contract.
Brand new USPS automobiles begins deliveries in belated 2023 and include air conditioning and heating, enhanced ergonomics, and advanced automobile security technology air that is including and 360-degree cameras. Most delivery that is present do not have air-con or contemporary safety features. The cars which are new be able to carry more cargo and better accommodate higher package volumes.
Final thirty days, President Joe Biden vowed to displace the U.S. government’s fleet of approximately 650,000 cars with electric models. The White home failed to respond to a ask for comment on the USPS agreement choice.