(WKBN) – The Cincinnati-based company that owns a 10% share in Lordstown Motors plans to file a legal challenge to the U.S. Postal Service’s decision to award its contract for the manufacture of its vehicles to Oshkosh Defense, according to an exclusive report by Reuters.
Reuters is citing a “source familiar with the matter” but said the company, Workhorse, declined to comment.
In February, the Postal Service announced that it was awarding a 10-year contract to the Wisconsin-based Oshkosh Defense to manufacture postal delivery vehicles, passing on hopes that Lordstown Motors would be part of the plan.
Since Workhorse owns a share of Lordstown Motors, there were hopes that the vehicles would be built at the Lordstown facility.
Under the contract’s initial $482 million investment, Oshkosh Defense will finalize the production design of the Next Generation Delivery Vehicle (NGDV) — a purpose-built, right-hand-drive vehicle for mail and package delivery — and will assemble 50,000 to 165,000 of them over 10 years.
The vehicles will be equipped with either fuel-efficient internal combustion engines or battery-electric powertrains and can be retrofitted to keep pace with advances in electric vehicle technologies. The initial investment includes plant tooling and build-out for the U.S. manufacturing facility where final vehicle assembly will occur.
The contract is the first part of a multi-billion-dollar, 10-year effort to replace the Postal Service’s delivery vehicle fleet.