Workhorse To Start Deliveries Of C-Series Delivery Vans In April
The target for 2020 is to produce 300-400 vehicles.
By the way of releasing financial results, Workhorse announced that it already started production of the C-Series delivery vans, but the customer deliveries were delayed from Q1 2020 until April due to supply disruptions caused by the coronavirus.
Initially, the C-Series (currently represented by the Workhorse C1000 and smaller Workhorse C650) will be available in limited volume, while the 2020 sales target is 300-400 vehicles.
Those are reasonable numbers for a small company since all startups struggle to launch their first product.
Workhorse sales in 2019 were just symbolic $377,000 (compared to also low $763,000 in 2018). At such low revenues, the net losses are relatively high $37.2 million (compared to $36.5 million in 2018).
Release Updates and Highlights
- Sold non-core assets and intellectual property allowing full strategic focus on last mile C-Series delivery vehicles and patented HorseFly drone truck mounted technology.
- Started production and are obtaining certifications to allow for delivery of vehicles to customers in April.
- Established a production and delivery target of 300-400 vehicles in 2020.
- Recorded non-cash license income of $12.2 million associated with the Lordstown Motors Corporation (LMC) investment.”
We don’t know the prices of C-series vans for fleets, but even at the planned 300-400 sales in 2020 the company probably will stay in the red. The successful launch of the product and hopefully sales of thousands of vehicles per year (from 2021) would be a turning point, we guess.
By the way, the Workhorse C650 looks pretty cool actually:
Workhorse CEO Duane Hughes said:
“In the fourth quarter we were able to complete transactions that allowed us to narrow our focus on our unique business of providing an all-electric, customer-focused design C-Series delivery vehicles and patented vehicle-mounted drones that can meet the needs of an $18 billion market where 300,000 trucks are replaced annually,” said .
“We also made meaningful progress in our transition from a development-stage company to a production-focused enterprise. We have now begun production and have obtained the needed certifications that will allow us to deliver a limited number of vehicles to our customers starting in April. While our intent had been to deliver initial vehicles in the first quarter of 2020, we were impeded by material supply disruptions related to the global outbreak of the novel coronavirus. Despite these near-term headwinds, we are setting a 2020 production target of 300-400 vehicles and are looking forward to delivering our state-of-the-art truck to our customers.”
Gallery: Workhorse C-Series Electric Step Vans
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