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Ford Could Get A Piece Of Oshkosh USPS Contract As Engine Supplier: Detroit Free Press

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Ford Could Get A Piece Of Oshkosh USPS Contract As Engine Supplier: Detroit Free Press

Ford Motor Co. (NYSE: F) could gain a share of the multi-billion-dollar delivery vehicle contract awarded by the United States Postal Service to Oshkosh Corp. (NYSE: OSK) on Tuesday, the Detroit Free Press reported.

What Happened: Early reports indicated that Ford would partner with Oshkosh by providing its Transit Vans. According to the Detroit Free Press, this isn't the case and the released photos don't resemble the Ford-built Transit.

Instead, Ford could get a piece of the multi-billion-dollar contract as an engine supplier to Oshkosh.

Detroit Free Press quoted Tom Quigley, Oshkosh’s vice president and general manager of government programs, as saying "we have teamed up with industry leaders whose proven sub-systems and components speak to the quality of the Oshkosh Defense NGDV (Next Generation Delivery Vehicles) offering."

See also: How to Buy Ford Stock

Quigley didn't confirm or deny the claim that the "sub-systems" being referred to are engines and that Ford could be the supplier.

The executive added that his company will build the vehicle — from the ground up — to fulfill the unique needs of the postal service and will share more information about the supply base in the future.

Why It Matters: The USPS said Oshkosh will manufacture a new generation of U.S.-built postal delivery vehicles, under a deal valued at an estimated $6 billion. Under the initial contract, Oshkosh will receive $482 million to finalize the vehicle’s production design and also begin assembly. The contract calls for 50,000 to 165,000 new USPS vehicles to be built over the next ten years.

Workhorse Group Inc. (NASDAQ: WKHS), which was one of the three finalists getting considered for the USPS contract, alongside Oshkosh and Turkey's Karsan saw its shares plummet nearly 56% in the regular and after-hours session on Tuesday at $15.10.

Price Movement: Ford shares closed 6% higher at $109.62 on Tuesday and added another 7% in the after-hours session.

Read Next: $1,000, 5 Years Later: Ford's Bumpy Ride

 

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Posted-In: automakers Detroit Free Press USPSNews Small Cap Events Media Best of Benzinga

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