Katie Hoxtell, an Oshkosh spokeswoman, declined to comment on the award citing a non-disclosure agreement. Workhorse has retained Akin Gump Strauss Hauer & Feld LLP and Mound Cotton Wollan & Greengrass LLP and “will also look to other options available to us,” Hughes said. “Yesterday’s meeting with the USPS marked the first step in what we expect may be a prolonged process to explore our options and possibly pursue further action,” Duane Hughes, Workhorse’s chief executive officer, said in a statement on Thursday. Oshkosh was off 2.1% at $106.52 at the close on Thursday.Įlectric-truck maker Workhorse, based in Loveland, Ohio, said it met Wednesday with representatives of the Postal Service to learn more about the agency’s surprise decision. ![]() Workhorse closed down 3.1% to $14.46 in New York trading. ![]() Workhorse shares have been reeling since the Wisconsin-based rival bidder was awarded the 10-year contract to build as many as 165,000 postal trucks. Oshkosh says its vehicles will be fuel efficient. He said they have an option to build more electric but that would cost billions of dollars more. Many of the current USPS vehicles only get about 10 miles per gallon, or worse gas mileage than a Humvee.īut only 10% of the Oshkosh mail-delivery vehicles are to be electric, Postmaster General Louis DeJoy told lawmakers the day after the Feb. ![]() The Postal Service operates 225,000 vehicles, making it the largest part of the federal fleet. But even that isn’t a guarantee.Ĭritics have said the postal contract doesn’t comport with Biden’s order for the government to transform its fleet into clean-energy vehicles. Its best hope may lie with a change in the service’s governing board proposed by President Joe Biden. Postal Service process and from there can go to federal court, according to experts in contracting. Workhorse will likely turn first to an internal U.S. The company itself forecast a “prolonged process” Thursday as it considers challenging Oshkosh Corp.’s win in the contest to build a next-generation fleet to replace the Postal Service’s decrepit, polluting mail trucks. Postal Service due to regulations designed to protect the integrity of government bidding and keep politics out. faces a tough road to overturn its loss of a $6 billion contract award to build trucks for the U.S. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.Workhorse Group Inc. PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. “In two years, best case, we get the Post Office contract, we also have a lot more orders and we’re producing to the tune of maybe 2,000 to 3,000 new vehicles per year in the C-Series,” he said. In a best-case scenario, Schrader said Workhorse has a massive opportunity in the next two years with both vans and drones. “I think what investors have done is looked at little Workhorse here and said look, not only are they making vehicles right now, they already have orders, and in addition to that they have a drone and they have an opportunity with the Post Office,” Schrader said. “They want safety first for sure, but from that standpoint, I think it’s a real opportunity and I think it’s more like two years away versus five years away,” he said.įirst-Mover Advantage: In the meantime, Schrader said Workhorse doesn’t have a true competitor and has roughly a two to three-year head start on Rivian. Schrader said any company that wants to launch a true drone delivery service that would rival a truck would need FAA certifications. Workhorse recently ran a demonstration of its autonomous touchless delivery in Virginia. ![]() Watch to the full interview with Steve Schrader in the clip below, or listen to the podcast hereĬOVID-19 Impact: Schrader said the COVID-19 outbreak has significantly increased interest in touchless and drone delivery. Obviously, if we were to get the full award or a decent-sized award, that would be transforming for the company,” Schrader said. “I think it’s a great opportunity for us. In addition, he said Workhorse vehicles have half the maintenance costs of the current USPS fleet.
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