is workhorse suing the post office
Workhorse has dropped its legal challenge to the U.S. Postal Service’s awarding of a $6 billion fleet replacement contract to a rival bidder.
The Loveland-based electric cargo van maker offered no explanation in its filing on Tuesday in the United States Court of Federal Claims in Washington, D.C. In a statement, the company said it hopes to win future government contracts and that dropping the lawsuit would improve its chances.
“The federal government has announced its intention to replace its fleet with electric vehicles, and we believe that the best way for us to work with any governmental agency is through cooperation, not through litigation,” said Workhorse CEO Rick Dauch, who joined the company in August. “By withdrawing our protest, we can also better focus our time and resources on initiatives that we expect will be more productive for our company.”
Dauch, the former head of Michigan-based powertrain company Delphi Technologies, replaced former CEO Duane Hughes, who stepped aside in July.
Workhorse had filed the lawsuit in June contesting the contract decision announced in February.
The U.S. Postal Service said it is moving ahead to update its fleet with Wisconsin-based trucking and defense contractor Oshkosh.
“We remain committed to modernizing our delivery fleet in service to our customers,” the federal agency said in a statement. “The Postal Service is working diligently with our supplier, and looks forward to the production of our Next Generation Delivery Vehicles (NGDV).”
Some Wall Street analysts had seen Workhorse as the frontrunner to win all or part of the postal contract to replace thousands of trucks. The loss of the contract sent Workhorse’s stock into a tailspin, losing investors more than $4 billion.
The contract snub prompted some Ohio lawmakers, including U.S. Sen. Sherrod Brown to cry foul. In a joint letter to the White House with U.S. Representatives Tim Ryan and Marcy Kaptur, he urged the Biden Administration to review the postal contract, claiming Workhorse had been “passed over.”
The company has since become the subject of an unspecified investigation by the U.S. Securities and Exchange Commission, which regulates publicly traded companies.
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