US electric vehicle manufacturer Workhorse Group will retire its troubled C-1000 step van at the end of 2022 and instead focus on the development of three new EVs, which it hopes will help “deliver long-term value” to its shareholders, following a year of recalls, financial losses, and management change.
The news comes as Workhorse, which makes electric delivery vans, drones, and telematics software designed for last-mile delivery, reported on its financial results for 2021, revealing a net loss of US$401.3 million compared to net income of US$69.8 million in 2020.
To attempt to turn its fortunes around, Workhorse will retire the C-1000 at the end of 2022, which was recalled in September 2021 for “additional testing”, and instead develop three new delivery vans – W750, W56 and W34. The first of which will be developed alongside battery electric vehicle manufacturer GreenPower, with production beginning as early as Q3 2022.
The W56, which will serve the Class 5 and 6 delivery van and truck market segments with a target payload range of greater than 7,000 lbs, will begin production in Q3 2023. The W34 platform, meanwhile, will be a new Class 3-4 vehicle featuring the Accessible Low Floor Platform with improved ride handling and lightweight systems. Production is expected to start in 2024.
Under the newly developed business plans, Workhorse expects to manufacture and sell at least 250 vehicles in 2022, assuming current supply chain visibility remains unchanged, and generate at least US$25 million in revenue.
Challenges with the C-1000
The retirement of the C-1000 follows a troubled past year for the Workhorse Group, which lost out on the USPS contract in February 2021 and then announced in September 2021 that it had suspended deliveries of the C-1000 and recalled the 41 vehicles that had already been delivered.
The company said that the recall was necessary as Workhorse’s leadership team had determined that additional testing and modifications to existing vehicles were required to certify the C-1000 vehicles under Federal Motor Vehicle Safety Standards (FMVSS).
Workhorse’s new CEO Rick Dauch said: “We continue to be confident in our ability to be a leading manufacturer of last-mile delivery vehicles over the long term.”
The company stressed at the time that it had not received any customer reports of safety issues related to this matter in any of the C-1000 vehicles previously delivered.
Workhorse has announced that FMVSS testing on the C-1000 has been completed and it will now repair all currently manufactured vehicles produced to date, and manufacture 50-75 additional vehicles from inventory on hand during 2022. The company will then retire the model, ending production of new vehicles while continuing to provide service and parts to customers with vehicles that are on the road.
GreenPower partnership
To bridge the gap between the C-1000 manufacturing and the launch of the new W56 and W34 platforms, Workhorse has signed a supplier agreement with GreenPower to produce the W750. The W750 is a class 4 delivery step van that is FMVSS/CMVSS certified and features a payload of more than 5,000 lbs.
Under the terms of the agreement, the companies have confirmed a 21-month schedule during which GreenPower will deliver 1,500 EV Star cab and chassis to Workhorse starting in July 2022. The chassis are to be used in the production of the W750 step van line, which is slated to enter production in Q3 2022. Workhorse will complete the manufacturing process and deliver finished step vans to its customers in the United States and Canada.
The W750 will feature up to 150 miles of all-electric range, with a payload capacity of 5,000 lbs, as well as standard 60 kW DC fast-charging and optional 60 kW wireless-charging capabilities.
According to Dauch, the partnership with GreenPower “is a crucial step in a multi-pronged effort to redefine our product portfolio.”
Looking back at 2021 developments, Dauch concluded: “We have taken significant action across the business to strengthen the foundation of the company. We moved quickly to build an experienced, capable leadership team, significantly enhance our engineering and technical expertise, open a new design facility, and strengthen our financial position.
“Most importantly, we have developed a revised and executable strategic product roadmap for our electric vehicle delivery offerings, which includes developing two new truck chassis platforms and multipurpose drones. We also entered a supplier agreement with GreenPower Motor Company, which demonstrates the value we provide as a strategic partner. While we have significant work ahead, we are confident we have the right team and structure in place to execute on our plans, deliver new vehicles to meet significant customer demand and deliver long-term value to our shareholders.”
