Oshkosh Selected for Massive $6 Billion Post Office Vehicle Contract

The U.S. Postal Service on Tuesday awarded Oshkosh (NYSE: OSK) an initial $482 million to modernize its fleet of postal-delivery vehicles, a big win for Oshkosh that has sent shares of electric truck maker Workhorse Group (NASDAQ: WKHS) plunging.

The Post Office in a statement announced a 10-year contract with Oshkosh Defense for the Next Generation Delivery Vehicle (NGDV). The initial contract will allow Oshkosh to finalize production design for the vehicle, with a plan to assemble 50,000 to 165,000 of them over the next 10 years.

The vehicles will be equipped with either fuel-efficient internal combustion engines or battery electric powertrains that can be retrofitted as technologies develop.

Source Fool.com