Inside Logistics

U.S. Postal Service taps defence contractor for new trucks

Oshkosh Defense will build 50,000 to 165,000 van-like vehicles during the next 10 years


June 23, 2021
by THE ASSOCIATED PRESS

Oshkosh Defense will make new delivery vehicles for the U.S. Postal Service in Spartanburg County, South Carolina, creating 1,000 new jobs.

The Wisconsin company on Tuesday said that it will reconfigure a warehouse with features needed to do large-scale manufacturing. Parts supply companies are expected to create more jobs in the area.

Gov. Henry McMaster said Oshkosh will invest US$155 million in Spartanburg County.

In February, Oshkosh Defense won the multi-billion-dollar contract to build the Postal Service’s next generation delivery vehicle. The company will build 50,000 to 165,000 van-like vehicles during the next 10 years, replacing a fleet that is up to three-decades old.

Some of the vehicles will be powered by batteries, while others will have internal combustion engines. The exact mix has not been decided yet.

Also Tuesday, Ford Motor Co. said its component sales subsidiary would make parts for the Postal Service vehicles, both electric and gasoline-powered. The automaker said the engines and transmissions would be made in Michigan, plus suspensions and other components.

Oshkosh said production in South Carolina is expected to begin in the summer of 2023, the company said Tuesday.

Oshkosh Defense, which mainly builds military vehicles, is a wholly owned subsidiary of the Oshkosh Corp.