Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Regulatory investigations and securities-trading allegations
Workhorse disclosed investigations by the SEC and Department of Justice concerning securities trading in the period before the USPS selected Oshkosh Defense. The disclosure followed allegations from a short-selling research firm and media reporting about stock sales by executives and directors, as well as shareholder litigation alleging misconduct connected with the USPS bid. The available reference material does not establish a final finding of wrongdoing.
2021
Workhorse recalls 41 delivered electric vehicles
Recall announced
Workhorse Group announced a recall of 41 electric vehicles that had recently been delivered to customers. The company cited customer feedback and the need for enhancements to the C-1000's production process and design. Workhorse stated that additional testing and modifications were required to certify C-1000 vehicles under federal motor vehicle safety standards. The recall covered only vehicles already delivered to customers, and the announcement did not specify further outcomes or remedies.
Workhorse announced a recall of 41 electric vehicles recently delivered to customers, citing customer feedback and the need for enhancements to the C-1000's production process and design. The company said additional testing and modifications were needed to certify C-1000 vehicles under federal motor vehicle safety standards.
Stated objective. Address customer feedback and implement enhancements in the production process and design of the C-1000 vehicle.
Company response
Recall — Workhorse Group Inc.
Workhouse Group Inc. announced on Wednesday a recall of 41 electric vehicles recently delivered to customers
Source excerpt
Workhorse's leadership team also determined additional testing and modifications to existing vehicles were need to certify C-1000 vehicles under Federal Motor Vehicle Safety Standards (FMVSS).
Workhouse Group Inc. announced on Wednesday a recall of 41 electric vehicles recently delivered to customers
2021
Pushback over Oshkosh’s USPS vehicle contract
Public backlash
Lawmakers and Workhorse Group pushed back after Oshkosh Corp. won the USPS next-generation delivery vehicle contract. A resolution sponsored by Rep. Marcy Kaptur sought to delay the contract pending an investigation into whether it aligned with the president’s climate-change executive order and whether inappropriate political influence affected the award.
Company response
Clarification — Oshkosh Corp.
A representative from Oshkosh Corp. wrote in a statement emailed Friday, "The USPS contract with Oshkosh Defense is aligned with and supportive of President Biden’s long-term plan. Our contract with the USPS includes zero-emission battery electric vehicles, up to 100% of the contracted units. Oshkosh is prepared to support the Postmaster General’s commitment 'to a majority of the Postal Service’s delivery fleet being electric within ten years,' as stated in the USPS letter to Congress of March 11, 2021."
Source excerpt
A representative from Oshkosh Corp. wrote in a statement emailed Friday, "The USPS contract with Oshkosh Defense is aligned with and supportive of President Biden’s long-term plan. Our contract with the USPS includes zero-emission battery electric vehicles, up to 100% of the contracted units. Oshkosh is prepared to support the Postmaster General’s commitment 'to a majority of the Postal Service’s delivery fleet being electric within ten years,' as stated in the USPS letter to Congress of March 11, 2021."
Lawmakers introduced a resolution this week, sponsored by Rep. Marcy Kaptur, D-Ohio, to delay the contract until an investigation could be conducted on whether the contract aligns with President Joe Biden's executive order on climate change and no inappropriate political influence came into play in awarding the contract.
However, there has been pushback since the announcement from lawmakers and Workhorse Group, an Ohio-based maker of electric vehicles that was among the bidders for the contract.
2021
Investors file class-action lawsuit against Workhorse
Lawsuit filed
Investors filed a class-action complaint against Workhorse in federal court, alleging that company executives made misleading and false statements about its bid for a U.S. Postal Service truck contract. Workhorse said it believed the claims were without merit and intended to defend itself.
Company response
Denial — Workhorse
We believe these claims are entirely without merit and intend to defend ourselves against this litigation.
Source excerpt
The lawsuit against Workhorse, filed Monday, seeks unspecified damages to be determined at trial.
Investors in Workhorse Group Inc. allege in a lawsuit that executives there made misleading and false statements concerning the company's bid to secure a multibillion contract to build the U.S. Postal Service's next-gen delivery truck.
The class-action complaint filed in federal court in central California claims Workhorse CEO Duane Hughes and Chief Financial Officer Steve Schrader misrepresented the company in media interviews