WASHINGTON (Reuters) – The U.S. Postal Service (USPS) stated on Tuesday it’ll award a multibillion-dollar, 10-year contract to Oshkosh Protection to fabricate a brand new era of postal supply autos.
Below the preliminary $482 million funding, Oshkosh Protection, a unit of Oshkosh Corp, will finalize the manufacturing design, testing and automobile tooling mandatory previous to automobile manufacturing. The per-vehicle worth was not disclosed.
The contract, which may very well be value greater than $6 billion in whole, permits for supply of between 50,000 and 165,000 of the autos over 10 years, which shall be a mixture of inside combustion-powered and battery-electric autos.
Oshkosh beforehand teamed up with Ford Motor Co on its proposal that features an earlier prototype primarily based on a Transit van. Ford declined to remark and Oshkosh declined to say what function, if any, Ford performed in successful the contract.
John Bryant, Oshkosh Protection’s president, stated in an interview with Reuters that the successful automobile “isn’t a Ford Transit … however is a purpose-built automobile.”
The present gas-guzzling USPS supply autos are almost 30 years previous on common. An audit report final 12 months stated USPS spent $5,000 alone per supply automobile on annual upkeep prices.
“That is simply mild years forward of the prevailing automobile,” Bryant stated.
Oshkosh shares closed 6.1% larger on the information. Shares of Workhorse Group Inc, a shedding bidder that sought to construct electric-only autos, had been briefly halted and misplaced nearly half their worth.
Colliers Securities analyst Michael Shlisky stated Workhorse’s lack of the contract is “actually dangerous information for latest Workhorse traders.”
USPS started planning to exchange the present fleet in 2015. Bryant stated the inner combustion variations may very well be retrofitted later as battery electrical autos.
The USPS fleet has greater than 230,000 autos, together with 190,000 that ship mail.
New USPS autos will start deliveries in late 2023 and embrace air-con and heating, improved ergonomics, and superior automobile security know-how together with air luggage and 360-degree cameras. Most present supply autos do not need air-con or trendy security options. The brand new autos will have the ability to carry extra cargo and higher accommodate larger package deal volumes.
Final month, President Joe Biden vowed to exchange the U.S. authorities’s fleet of roughly 650,000 autos with electrical fashions. The White Home didn’t reply to a request for touch upon the USPS contract resolution.
Reporting by David Shepardson in Washington; Extra reporting by Ben Klayman in Detroit; Modifying by David Gregorio and Matthew Lewis