Workhorse attorneys in mail truck contract dispute with Postal Service

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Workhorse Group (NASDAQ: WKHS) expects an “prolonged course of” to vary the US Postal Service’s resolution to assign next-generation postal truck operations to protection contractor Oshkosh Truck Corp. (NYSE: OSK).

Workhorse, based mostly in Loveland, Ohio, was shocked final week when the Postal Service awarded a 10-year contract with an preliminary worth of $ 482 million to the Wisconsin firm. Oshkosh manufactures army autos, fireplace vans and ambulances.

The Subsequent Technology Supply Automobiles (NGDV) exercise went to a few finalists. Workhorse provided the one battery-powered electrical car (EV). This was in step with President Joe Biden’s government order to make the federal fleet’s 645,000 autos zero-emission electrical autos.

Buyers had provided Workhorse shares at file ranges. They anticipated him to get not less than a part of the multibillion-dollar contract. When that did not occur, Workhorse shares misplaced 50% of their worth in two days. Analysts, in flip, decrease their goal costs.

“Though we don’t mannequin success on the USPS [competition], we anticipated that Workhorse would play a job within the contract, particularly given the administration’s stance that authorities fleets are zero-emission, ”Cowen analyst Jeffrey Osborne wrote on Monday after the decision for fourth quarter outcomes from Workhorse.

Hiring of attorneys and consultants

After a gathering with the Postal Service on Wednesday, Workhorse mentioned he “will comply with correct procedures as outlined by the USPS and likewise take a look at different choices obtainable to us,” mentioned Workhorse CEO Duane Hughes. in a press launch Thursday.

“Within the meantime, we have now retained the providers of main authorized and company consulting corporations, together with Akin Gump Straus Hauer & Feld LLP and Mound Cotton Wollan & Greengrass LLP, to establish our choices and pursue them successfully,” did he declare.

Workhorse shares traded at $ 13.76, down 7.77% at 10:28 a.m. on Thursday. The meme inventory frenzy briefly pushed Workhorse shares above $ 42 just a few weeks in the past.

“With the lack of the vastly profitable USPS NGDV contract, Workhorse has misplaced its best alternative to realize scale within the electrical car market,” quick vendor Phillip Martinelli wrote on Monday. on the investor web site Searching for Alpha.

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Click on for extra FreightWaves articles by Alan Adler.



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