Oshkosh Subsidiary Receives $3B Order for Postal Service Delivery Vehicles

The defense subsidiary of Oshkosh (NYSE: OSK) has received an initial order from the U.S. Postal Service for 50,000 next-generation delivery vehicles worth $2.98 billion.

Oshkosh Defense said Thursday the order includes at least 10,019 electric battery-powered vehicles and the remaining units will be built with low-emission internal combustion engines, as part of a 10-year indefinite-delivery/indefinite-quantity contract the company won in February 2021.

Production services for the USPS NGDV program are scheduled to commence in 2023 at a company-run factory in Spartanburg, South Carolina.

In a separate announcement, the agency said its future delivery platform will feature 360-degree cameras, a braking and traction control technology, airbags and a collision avoidance system for the front and rear ends of the vehicle.

The NGDV is designed to carry more mails and packages than USPS’ current Long Life Delivery Vehicle fleet.

“We will continue to look for opportunities to increase the electrification of our delivery fleet in a responsible manner, consistent with our operating strategy, the deployment of appropriate infrastructure, and our financial condition, which we expect to continue to improve as we pursue our plan,” said Postmaster General and USPS CEO Louis DeJoy.

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