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Workhorse Group Suffers Yet Another Setback, Suspend Delivery of Electric Van

The announcement today by Workhorse Group, the American makers of electric trucks and vans, that it will suspend the deliveries of their flagship C-1000 electric van, is yet another recent setback for the company.
Workhorse Group c-1000 6 photos
Workhorse GroupOshkosh Defense Postal PrototypeOshkosh Defense Postal PrototypeWorkhorse Group postal prototypeWorkhorse Group
Workhorse says the vehicles now require more testing and modifications to ensure that the vans meet mandatory standards.

Also, shares in Workhorse dropped some 14%, and that means share value is at close to a one-year low of $7.05 as the company suffers yet another snag. The same announcement also said that Workhorse will recall all 41 vans which have already been delivered to customers.

Last week Workhorse Group voluntarily dismissed a legal challenge against their rivals, Oshkosh Defense, which sought to overturn a USPS move to award a multibillion-dollar deal to Oshkosh for delivery of the next generation of Postal Service vehicles. The 10-year contract deal, which was announced at the start of this year, is projected to be worth upwards of $6 billion. It called for the delivery of anywhere from 50,000 to 165,000 vehicles.

The Workhorse bid proposed that the company would build an all-electric vehicle fleet while the winning Oshkosh bid called for meeting the requirement with a mix of internal combustion-powered and electric vehicles.

The suspension and recall is bad news on top of bad news, as Workhorse are also said to be under investigation by the U.S. Securities and Exchange Commission.

Based in Ohio, the company said a fresh leadership team has concluded that additional modifications were necessary to make sure the C-1000 vehicles meet Federal Motor Vehicle Safety Standards (FMVSS).

Workhorse also says they informed the National Highway Traffic Safety Administration about the need for the changes and that their information about the van's compliance with NHTSA standards is no longer reliable.

Workhorse declared that they expect to complete testing of the C-1000 vans by the end of the year.

According to the company, the C-1000 van has a range of 100 miles and is powered by a 70 kWh battery pack.


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