CHARLOTTE, Mich., Feb. 21, 2017 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) ("Spartan" or the "Company"), a global leader
in specialty chassis and vehicle design, manufacturing and
assembly, today announced that its Spartan Fleet Vehicles and
Services (FVS) business unit — which encompasses the Utilimaster
go-to-market brand — has stopped development on the United States
Postal Service (USPS) Next Generation Delivery Vehicle (NGDV)
Program as a prime contractor in the functional prototype
development project and has sought withdrawal from the USPS.
Spartan is continuing efforts to support this project and will
partner with a leading USPS prototype award participant, to provide
interior cargo solutions specific for the USPS's needs.
"As a global leader in fleet vehicle design and production, we
were honored to be among a select group of vehicle makers to win
the USPS prototype award," said Daryl
Adams, President and Chief Executive Officer of Spartan
Motors. "However, when we took a close look at the economics as a
result of our inability to reach a satisfactory agreement with our
commercial chassis supplier, further participation in the program
as the primary body builder did not meet our baseline financial
targets. Working closely with one of the USPS prototype award
participants will enable us to participate in this significant NGDV
program without the related upfront developmental capital
requirement, while building what we're best at for the fleet market
– custom interior cargo management solutions."
Utilimaster has produced route delivery and other vehicles for
the USPS since 1999. As previously announced, Utilimaster was one
of six vehicle manufacturers selected to receive the prototype
award as part of a comprehensive USPS Request for Proposal (RFP)
process. After a thorough evaluation, in-depth supplier
consideration, and extensive financial modeling, Spartan has
determined that remaining in the USPS NGDV project as a cargo
management supplier provides a better return on capital, which
better serves the Company and its shareholders.
"We would like to extend our most sincere thanks to the USPS for
considering and selecting Spartan to take part in the evolution of
their fleet," continued Adams. "We look forward to assisting with
development effort and providing the USPS with high quality cargo
management solutions that best meet the needs of their business,
while ensuring improved safety, productivity, and performance for
their route delivery personnel."
About Spartan
Motors
Spartan
Motors, Inc. is a leading designer, engineer, manufacturer and
marketer of a broad range of specialty vehicles, specialty chassis,
vehicle bodies and parts for the fleet and delivery, recreational
vehicle (RV), emergency response, defense forces and contract
assembly (light/medium duty truck) markets. The Company's brand
names— Spartan Motors, Spartan Specialty Vehicles, Spartan
Emergency Response, Spartan Parts and Accessories, and
Utilimaster®, a Spartan Motors Company— are known for quality,
durability, performance, customer service and first-to-market
innovation. The Company operates facilities in Michigan, Indiana, Pennsylvania, Kansas, Wisconsin, Nebraska, South
Dakota, Saltillo, Mexico;
and Lima, Peru. Spartan reported
sales of $550 million in 2015. Visit
Spartan Motors at www.spartanmotors.com.
This release contains several forward-looking statements that
are not historical facts, including statements concerning our
business, strategic position, financial projections, financial
strength, future plans, objectives, and the performance of our
products and operations. These statements can be identified
by words such as "believe," "expect," "intend," "potential,"
"future," "may," "will," "should," and similar expressions
regarding future expectations. These forward-looking
statements involve various known and unknown risks, uncertainties,
and assumptions that are difficult to predict with regard to
timing, extent, and likelihood. Therefore, actual performance
and results may materially differ from what may be expressed or
forecasted in such forward-looking statements. Factors that could
contribute to these differences include operational and other
complications that may arise affecting the implementation of our
plans and business objectives; continued pressures caused by
economic conditions and the pace and extent of the economic
recovery; challenges that may arise in connection with the
integration of new businesses or assets we acquire or the
disposition of assets; restructuring of our operations, and/or our
expansion into new geographic markets; issues unique to government
contracting, such as competitive bidding processes, qualification
requirements, and delays or changes in funding; disruptions within
our dealer network; changes in our relationships with major
customers, suppliers, or other business partners, including Isuzu;
changes in the demand or supply of products within our markets or
raw materials needed to manufacture those products; and changes in
laws and regulations affecting our business. Other factors
that could affect outcomes are set forth in our Annual Report on
Form 10-K and other filings we make with the Securities and
Exchange Commission (SEC), which are available at
www.sec.gov or our website. All forward-looking
statements in this release are qualified by this paragraph.
Investors should not place undue reliance on forward-looking
statements as a prediction of actual results. We undertake no
obligation to publicly update or revise any forward-looking
statements in this release, whether as a result of new information,
future events, or otherwise.
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SOURCE Spartan Motors, Inc.