Oshkosh Defense’s New Contract With the USPS
In the contract between the company and the USPS, Oshkosh Defense will be delivering up to 165,000 ready-for-business EV models to the service over the course of the next 10 years. The company will achieve this feat through an initial investment from the USPS of $482 million. The deal will also include plant tooling and build-out for the US-based manufacturing facility where the final vehicle assembly will occur. The new delivery fleet designed by the company will come with a selection of features for practicality and efficiency.
The major highlight of the new delivery truck provided by the company is the engine. The business will deliver a mix of both EV and highly efficient internal combustion vehicles. The business has also ensured that the EV models will be retrofitted in order to continue replacing the electric motors as newer technology is released. The trucks will also have steering wheels on the right side of the vehicle allowing for mail delivery to be made without having to get out at every single mailbox.
Other new features the business has designed into the EV include air conditioning and heating, 360-degree cameras, a collision avoidance system, increased cargo capacity, and airbags, which are surprisingly not currently in the majority of USPS delivery vehicles.
Stock Market Reaction and Industry Trends
Following the announcement of the new business contract, Oshkosh saw its stock soar with the company shares rising by over 5% in trading today. Investors in the business see the new contract as a major signifier of future success.
As for the USPS, the service is joining in on the growing trend of environmentally friendly decisions playing into deliveries. Ecommerce company Amazon announced late last year that they had enlisted the help of EV business Rivian to provide 100,000 EVs for delivery purposes by 2030.
When commenting on the new business deal, Postmaster General and CEO of the USPS, Louis Dejoy, said, “Our fleet modernization also reflects the Postal Service’s commitment to a more environmentally sustainable mix of vehicles. Because we operate one of the largest civilian government fleets in the world, we are committed to pursuing near-term and long-term opportunities to reduce our impact on the environment.”
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.