President-elect Biden promises to increase funding for the USPS, despite losing nearly $ 9 billion last year. Grady Trimble from FOX Business with more.
The US Postal Service announced on Tuesday that it had chosen a company to help it carry out a “dramatic” multi-billion dollar modernization of its delivery vehicle fleet.
The Postal Service awarded the contract to Oshkosh Defense, Wisconsin, which will help the agency reduce its costs and transition from greenhouse gas emission technologies to cleaner solutions.
The agency said that, as part of its initial $ 482 million investment, Oshkosh Defense will complete the vehicle design and assemble up to 165,000 vehicles over a decade.
“The contract is the first part of a 10-year multibillion-dollar effort to replace the Postal Service delivery vehicle fleet, one of the largest in the world,” the USPS said in a statement, noting that it has more than 230,000 vehicles in each class .
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The prize has an undetermined delivery time, which means that the Post Office will be able to order more vehicles in addition to the initial investment. In general, the contract must have a multi-billion dollar value.
Next generation delivery vehicles are expected to appear on the roads in 2023. They will include air conditioning, heating, 360 degree cameras, advanced braking and traction control, airbags, anti-collision systems, as well as increased cargo space to evolve alongside of a growing e-commerce business.
The plan to update its delivery fleet is part of a broader 10-year commitment by the USPS to become the “preferred delivery service provider for the American public”.
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Oshkosh Defense’s shares jumped more than 10% on Tuesday.
As previously reported by FOX Business, the USPS reported quarterly earnings during its most recent financial results, largely driven by an increase in e-commerce purchases due to the ongoing pandemic.
The positive news came with two caveats, however, including a note that the quarter’s loss would have been $ 650 million, excluding adjustments that were made to compensate non-cash workers and a temporary peak surcharge, as well as warnings that the results may not be sustainable.
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