( NYSE: GM) to find a buyer and retain jobs at its sprawling Lordstown manufacturing complex in northeast Ohio. Workhorse and Lordstown Motors were considered favorites for the postal contract under President Donald Trump, who agitated for General Motors Co. Cowen maintains an overweight rating on Workhorse shares with a $23 target price. “We also believe that President-Elect Biden will want to move forward with the USPS fleet replacement decision as it represents a good opportunity for his administration to showcase its favorable view on clean energy and sustainability,” Osborne wrote. analyst Jeffrey Osborne wrote in an investor note. “We are not surprised by the delay given the impending change in presidential administration COVID-19’s impact on the USPS, and politicization of the USPS,” Cowen and Co. LMC shares closed 5.63% lower at $22.08 Wednesday. It licensed Workhorse technology in exchange for granting Workhorse 10% ownership and several types of royalties. LMC is an electric pickup truck maker run by former Workhorse CEO Steve Burns. Winning the Postal Service contract would be a big deal for Workhorse, which would subcontract production to Lordstown Motors Corp. ( NYSE: OSK), and Turkish manufacturer Karsan working with bodybuilder Morgan Olson. The contract originally was to be awarded in 2018.įinalists for the 180,000-unit, five-year contract include Workhorse, a pairing of Ford Motor Co. Originally, seven suppliers created concepts to replace the aging fleet of right-hand drive Long Life Vehicles (LLV) made by Grumman. The Postal Service began a multiyear research program for new delivery vehicles in 2016.
Workhorse shares closed down 19.02% at $20.43 on Wednesday. “However, amid continuing COVID-19 concerns, and in order to provide for capital investment activities and required approvals, the program decision is now planned for January to March 2021,” she said, confirming the latest delay first reported Tuesday by. “The COVID-19 pandemic previously resulted in the expected production award being pushed to the end of 2020,” Postal Service spokeswoman Kim Frum said Wednesday, Postal Service again delayed a multibillion-dollar contract for next-generation delivery vehicles. Riley’s Christopher Souther, “Dauch's experience with turnarounds within the auto industry makes him a nice fit for Workhorse as it looks to ramp production.Investors pummeled Workhorse Group ( NASDAQ: WKHS) shares Wednesday after the U.S. His most recent role was as CEO of Delphi Technologies where he executed a merger with BorgWarner in October 2020, following the completion of a successful spin-off from Aptiv. Dauch will take hold of the reins at the start of the week and brings with him considerable experience. The reason for pulling the forecast is down to the new appointment of Rick Dauch as CEO and is so the new man at the helm could have some time to assess the best path forward for the ailing company. Although that might not necessary be a bearish sign. Last week, the company said it is also taking the revised guidance off the table. The stock’s action has reflected the real-world issues shares are down by 43% year-to-date. Then, constrained by supply chain issues which have been a curse to many this year, the company lowered its full-year 2021 production guidance from 1,800 vehicles to 1,000 vehicles.
WORKHORSE NEWS USPS CONTRACT DRIVER
For one, the electric-truck maker lost what appeared to be the stock’s most bullish driver – a USPS contract to renew the postal service’s aging delivery truck fleet after a drawn out process, the contract was awarded to Oshkosh. 2021 has provided several headwinds for Workhorse ( WKHS).
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