WASHINGTON (Reuters) – The U.S. Postal Service (USPS) mentioned on Tuesday it is going to award a multibillion-dollar, 10-year contract to Oshkosh Protection to fabricate a brand new technology of postal supply autos.
A brand new technology of U.S.-built postal supply autos. Courtesy USPS/by way of REUTERS
Below the preliminary $482 million funding, Oshkosh Protection, a unit of Oshkosh Corp, will finalize the manufacturing design, testing and automobile tooling vital previous to automobile manufacturing. The per-vehicle worth was not disclosed.
The contract, which could possibly be price greater than $6 billion in whole, permits for supply of between 50,000 and 165,000 of the autos over 10 years, which can 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, mentioned in an interview with Reuters that the successful automobile “will not be a Ford Transit … however is a purpose-built automobile.”
The present gas-guzzling USPS supply autos are practically 30 years previous on common. An audit report final yr mentioned USPS spent $5,000 alone per supply automobile on annual upkeep prices.
“That is simply gentle years forward of the prevailing automobile,” Bryant mentioned.
Oshkosh shares closed 6.1% greater on the information. Shares of Workhorse Group Inc, a shedding bidder that sought to construct electric-only autos, have been briefly halted and misplaced nearly half their worth.
Colliers Securities analyst Michael Shlisky mentioned Workhorse’s lack of the contract is “actually dangerous information for latest Workhorse buyers.”
USPS started planning to interchange the present fleet in 2015. Bryant mentioned the interior combustion variations could possibly 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 expertise together with air luggage and 360-degree cameras. Most present supply autos would not have air-con or trendy security options. The brand new autos will be capable of carry extra cargo and higher accommodate greater bundle volumes.
Final month, President Joe Biden vowed to interchange 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 determination.
Reporting by David Shepardson in Washington; Further reporting by Ben Klayman in Detroit; Enhancing by David Gregorio and Matthew Lewis