Nearly a month ago, the Biden administration promoted EVs and said all the government vehicles would be electric. The United States Post Office, which employs more than 7 million people, has recently made a huge announcement.
But before I unravel the news, you must also know that the USPS is one the largest civilian fleet globally, having more than 228,000 vehicles. It’s been 30 years since the postal service upgraded its mail delivery trucks as the world moves towards greener energy.
Green Day for USPS –
In its attempt to go green, US Postal Services has given The Oshkosh Truck Corp a 10-year contract to manufacture electric delivery vans with advanced features and safety.
USPS undertook a major step toward an investment in its future with a production contract for a next generation delivery vehicle. The vehicle award is part of a 10-year plan to improve customer service, achieve financial stability and better support the postal workforce.
— U.S. Postal Service (@USPS) February 23, 2021
Oshkosh will be not only manufacturing new EVs for USPS but will also upgrade some of the existing models with modern technology. At present, the American EV automakers have been sanctioned $482 million to build 50,000 electric trucks.
This massive upgrade in the delivery vans will be witnessed after 30 years. This will also be a crucial step by USPS as it will assist it in effectively completing the online deliveries.
Workhorse’s loss –
One man’s gain is another man’s loss! or perhaps ‘company,’ I should say! Oshkosh beat the Workhorse in the race of the partnership with USPS. Since then, Workhorse shares have been plunging. For a while, day traders were heavily investing in the company in the hopes of making a profit from the multi-billion dollar deal. Workhorse was among the top 3 contenders, along with Oshkosh. But unfortunately, for Workhorse, it couldn’t close the deal with USPS.
Since then, the Ohio-based electric automaker’s shares have gone down by more than 47%, as the day traders left it, hanging alone.
Once upon a time –
A year ago, when Donald Trump was in the office, Workhorse was seen as the possible winner among the 7 EV automakers who USPS invited to build a prototype. Trump also supported the Lordstown Motor Corp, which shares the same technology as the Workhorse.
In fact, the former CEO of Workhorse is the founder of LMC. This EV brand was expected to be the manufacturing partner of Workhorse. Just like Workhorse, losing this deal also plugged LMC’s shares as it is down to 13% now.
But now, here we’re. Focusing on the present and the EV future, the vehicles developed by Oshkosh will be more spacious and equipped with features like cameras, collision avoidance systems, and airbags to enhance safety. This step by USPS to collaborate with Oshkosh will be an essential step towards an all-electric future.