McAbee Trucking Acquires Workhorse’s W4 CC to Transport U.S. Mail

Rhea-AI Summary

Workhorse Group Inc. (Nasdaq: WKHS) announced that McAbee Trucking, Inc. has acquired a new all-electric W4 CC box truck for transporting U.S. mail. This marks McAbee's first electric vehicle addition to their fleet, following a successful demonstration period. The W4 CC will operate a 120-mile daily round trip mail route between Blacksburg, South Carolina, and Shelby, North Carolina.

This acquisition aligns with McAbee Trucking's commitment to lowering emissions while maintaining their high reliability and on-time dispatch rating of over 99% for the U.S. Postal Service. The National Star Route Mail Contractors Association supports this move towards alternative fuel adoption, in line with the Postal Service's commitment to reducing harmful emissions.

Positive

• Acquisition of Workhorse W4 CC electric truck by McAbee Trucking for U.S. mail transport
• Successful demonstration of W4 CC's capabilities in real-world operations
• Alignment with U.S. Postal Service's commitment to reducing emissions
• Maintenance of high reliability and on-time dispatch rating (over 99%) while transitioning to electric vehicles

Negative

• None.

Financial Analyst

The acquisition of Workhorse's W4 CC by McAbee Trucking represents a strategic step for Workhorse Group (WKHS) in penetrating the commercial EV market, particularly within the logistics and mail delivery sectors. McAbee Trucking is a pioneering adopter, which can have significant implications for Workhorse's revenue and market positioning.

From a financial perspective, this acquisition is a positive indicator of the operational readiness and market acceptance of Workhorse's products. The company's ability to showcase the W4 CC’s reliability and efficiency during the demonstration period was key in securing this sale. If the truck performs as expected, it could lead to further orders, boosting Workhorse's revenue stream. Furthermore, as McAbee Trucking has a high performance reliability rating with USPS, the successful integration of the W4 CC could set a precedent for other logistics companies and postal contractors to follow suit.

The acquisition also aligns with broader industry trends toward sustainability and zero-emission goals, potentially positioning Workhorse as a leading player in the electric commercial vehicle segment. Investors should watch for subsequent sales and partnerships as they could indicate a scalable demand for Workhorse's offerings.

Market Research Analyst

The significance of McAbee Trucking's acquisition of the Workhorse W4 CC extends beyond the immediate sale. It highlights a growing industry trend towards electric vehicles (EVs) in commercial fleets, driven by regulatory pressures and sustainability goals. As the transportation sector continues to shift towards greener solutions, there is a strong potential market for Workhorse’s electric trucks.

This move not only showcases the viability of electric trucks for logistical operations but also reinforces the commitment of companies like McAbee Trucking to sustainability. Such commitments are increasingly valued by both consumers and regulatory bodies. The operational success of the W4 CC on McAbee's routes could serve as a key testimonial, encouraging other companies to consider similar transitions, thus expanding Workhorse's market reach.

For investors, this development is an indicator of Workhorse's competitive positioning and market opportunities in the evolving EV landscape. As regulatory standards tighten and the push for zero-emission vehicles grows, companies that are early adopters of reliable and efficient electric solutions, like Workhorse, are likely to benefit.

CINCINNATI, July 18, 2024 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) (“Workhorse” or “the Company”), an American technology company focused on pioneering the transition to zero-emission commercial vehicles, today announced McAbee Trucking, Inc., a pioneer in the operation of alternative fuel trucks on Star Carrier Mail Contractor Routes, has taken a step forward in sustainable transportation by acquiring a new all-electric W4 CC box truck from Workhorse. This purchase marks McAbee Trucking’s first addition of an electric vehicle to their fleet, following a successful demonstration period that showcased the capabilities and benefits of Workhorse’s W4 CC. The decision to acquire a W4 CC was driven by the impressive performance observed during the demo, validating the reliability and efficiency of the Workhorse electric trucks in real-world operations.

The W4 CC electric box truck is equipped to perform a 120-mile daily round trip mail route between Blacksburg, South Carolina, and Shelby, North Carolina. This addition underscores McAbee Trucking’s commitment to lowering emissions while maintaining their impressive reliability record and an on-time dispatch rating of over 99% by the U.S. Postal Service.

Lisa McAbee, owner of McAbee Trucking, expressed her enthusiasm for this sustainable upgrade: “We are thrilled to incorporate the Workhorse W4 CC into our fleet. This zero-emission vehicle aligns with our mission to adopt greener technologies while ensuring the high level of service that our customers, including the USPS, expect from us.”

Greg Reed, Executive Director of the National Star Route Mail Contractors Association, also commented on this significant development: “The National Star Route Mail Contractors Association is committed to supporting the adoption of alternative fuels, including battery-electric solutions like McAbee Trucking’s Workhorse truck. This step is in line with the Postal Service’s commitment to reducing harmful emissions by transitioning to alternative fuel trucking fleets.”

“We're honored to see our Workhorse electric truck in action, delivering mail on Star Carrier Routes,” said Ryan Gaul, Workhorse President of Commercial Trucks. “McAbee Trucking and other early adopters are leading the charge, demonstrating that transitioning to electric is a win-win solution. It achieves zero-emission goals while maintaining operational efficiency and reliability."

About McAbee Trucking
McAbee Trucking was established in 1971 and currently serves as a United States Postal Service contractor, delivering packages between USPS locations in North Carolina and South Carolina. The company has 68 employees and a fleet of 63 vehicles, which includes a mix of propane, compressed natural gas (CNG), and diesel trucks.

About Workhorse Group Inc.
Workhorse is a technology company focused on providing ground-based electric vehicles to the last-mile delivery sector. As an American original equipment manufacturer, we design and build high performance, battery-electric trucks. Workhorse also develops cloud-based, real-time telematics performance monitoring systems that are fully integrated with our vehicles and enable fleet operators to optimize energy and route efficiency. All Workhorse vehicles are designed to make the movement of people and goods more efficient and less harmful to the environment. For additional information visit workhorse.com.

Forward Looking Statements

This press release contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. When used in this document, the words “anticipate,” “expect,” “plan,” “believe,” “seek,” “estimate,” “will,” and “continue” and similar expressions are intended to identify forward-looking statements. These statements involve substantial risks and uncertainties. For a further description of the risks and uncertainties relating to the business of the Company in general, see the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as of the date hereof. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based, except as required by law.

Media Contact:
Aaron Palash / Greg Klassen
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Group
949-574-3860
WKHS@gateway-grp.com

FAQ

What is the range of the Workhorse W4 CC electric truck acquired by McAbee Trucking?

The Workhorse W4 CC electric box truck acquired by McAbee Trucking is equipped to perform a 120-mile daily round trip mail route between Blacksburg, South Carolina, and Shelby, North Carolina.

How does the acquisition of the Workhorse W4 CC (WKHS) align with McAbee Trucking's goals?

The acquisition aligns with McAbee Trucking's commitment to lowering emissions while maintaining their high reliability and on-time dispatch rating of over 99% for the U.S. Postal Service.

What is the significance of McAbee Trucking's purchase of the Workhorse W4 CC (WKHS) for the electric vehicle industry?

This purchase represents a significant step in the adoption of electric vehicles in the mail delivery sector, demonstrating the viability of zero-emission vehicles for maintaining operational efficiency and reliability in real-world conditions.

How does the National Star Route Mail Contractors Association view the adoption of Workhorse (WKHS) electric trucks?

The Association supports the adoption of alternative fuels, including battery-electric solutions like McAbee Trucking's Workhorse truck, as it aligns with the Postal Service's commitment to reducing harmful emissions by transitioning to alternative fuel trucking fleets.