Workhorse abruptly drops lawsuit against Postal Service over new mail truck

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EV startup Workhorse has dropped its lawsuit opposing the decision of the United States Postal Service to ask Oshkosh Defense to manufacture the next-generation mail truck. Court Accepts Workhorse voluntary dismissal Late Tuesday — just a day before the first oral debate begins regarding the USPS’s attempt to dismiss the case.

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Workhorse filed a protest in the US Court of Federal Claims in mid-June, after the USPS announced it had awarded defense contractor Oshkosh the contract to build the next generation mail truck, ending a competition that began in 2015. .

An Oshkosh spokesperson said in an email, “We are pleased to learn that Workhorse Group withdrew its bid for the award of the United States Postal Service Next Generation Delivery Vehicle (“USPS NGDV”) contract to Oshkosh Defense. Is. ledge.[W]e is proud that the USPS selected our solution to meet the needs of the NGDV program. We look forward to working with our partners across the country to bring these highly capable and efficient vehicles to the carriers who need them. “

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In a statement, the USPS said it “made up”[s] Committed to modernize our delivery fleet at the service of our customers. The Postal Service is working diligently with our supplier, and looks forward to producing our Next Generation Delivery Vehicles (NGDV).

Workhorse’s decision to drop the lawsuit comes two weeks after a short-selling research firm published a report on the startup, alleging fraud and accusing the company of hiding a Securities and Exchange Commission investigation from investors. Workhorse did not respond to multiple requests for comment about the dismissal and did not respond to any questions about the allegations.

The dismissals also come after Workhorse replaced its CEO and the company announced plans to redesign its flagship electric delivery van, which it had just started building.

The USPS set out to replace its current mail trucks in 2015, in hopes of making the fleet more fuel efficient and giving mail carriers advanced safety features and modern amenities such as air conditioning. Workhorse was one of the few companies it put on hold for final bids last year, and it claimed to be the only company to propose building a fully electric mail fleet.

But despite some big-name companies like UPS and FedEx testing their earlier vehicles, the Ohio-based company struggled to escalate. To keep itself afloat, Workhorse borrowed money from a hedge fund and sold off parts of its business – including licensing intellectual property for an electric pickup truck, started by its former CEO, Lordstown Motors. The new company was never created.

The Postal Service selected Oshkosh in February, and the agency and defense contractor revealed a new vehicle that is believed to be capable of running on both gas and electric drivetrains. Oshkosh has agreed to build 50,000 to 165,000 trucks over 10 years. Initially only about 10 percent will be electric, and those that are not are considered “fuel efficient”. [and] Low emissions,” though neither Oshkosh nor USPS has endorsed those terms with any numbers. The USPS has said it will need billions of dollars to increase the number of all-electric vehicles it can order from Oshkosh.

Workhorse initially filed an appeal with the USPS after the award was announced, and then filed its bid opposition in Federal Claims Court on June 16. The USPS (and Oshkosh, which joined the case to support the agency’s defense) argued that the workhorse had to go through at least one more official step set out in the competition rules before filing a federal lawsuit and dismissing the case. Tried these grounds. An oral debate on the USPS’s motion to dismiss was to take place on Wednesday.

The USPS has been highly confidential about the details of the competition and its decision to go with Oshkosh. Workhorse alleged that Oshkosh changed its plans at the end of the competition, and the design revealed in February was never subject to the tests that the USPS required by its regulations. also appeared in the workhorse one of your own filings That the USPS told the startup that there was at least one other all-electric entrant, and that even if the agency had not selected Oshkosh, the workhorse would not have won the contract.

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