Workhorse Group Inc., the small Ohio company paired with VT Hackney to compete for the multi-billion-dollar U.S. Postal Service advanced mail truck contract, said the team has broken up.
Workhorse said will pay VT Hackney $7 million for certain intellectual property and engineering assets and that the companies are no longer working together. The two companies designed several prototypes of an electric mail truck that underwent Postal Service testing.
The split comes as the Postal Service gets ready to offer a manufacturing request for proposal to one or more of the teams competing to build the next-generation mail truck. The contract to supply 180,000 new vehicles is expected to be worth more than $6.3 billion. The agency is scheduled to put out the RFP in the coming weeks.
“We announced during our November Board meeting that the RFP would be released by the end of the year,” Postal Service spokeswoman Kim Frum said in an email.
The work could go to one company or be split among several manufacturers.
It’s not clear whether the split with VT Hackney will affect Workhorse’s chances of landing the contract.