FILE - In this Aug. 18, 2020, file photo, mail delivery vehicles are parked outside a post office in Boys Town, Neb.
Oshkosh Defense, a division of Wisconsin-based Oshkosh Corp., will assemble 50,000 to 165,000 of the new Next Generation Delivery Vehicles at its existing U.S. manufacturing facilities.
USPS described the deal as the first part of a multibillion-dollar 10-year effort to replace its delivery vehicle fleet.
The choice of Wisconsin-based Oshkosh is a big miss for Ohio-based electric vehicle startup Workhorse Group, which put in an all-electric bid for the vehicles.
Traditional mail volumes have declined, while the service now delivers millions of packages from online retailers like Amazon that did not exist when the previous mail vehicle was introduced.