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Workhorse Shares Up After Reaching Accord With Hitachi

Workhorse shares were higher after the van and drone company said it reached a strategic agreement with Japanese tech company Hitachi.
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Workhorse Group  (WKHS) - Get Workhorse Group Inc. Report shares on Monday were higher after the van and drone company said it reached a strategic agreement with Japanese technology company Hitachi  (HTHIY) .

Hitachi will assess Workhorse's manufacturing, operations and supply-chain capability and recommend ways to support the Cincinnati company's increased production requirements. 

"This alliance with Hitachi comes at an ideal time for Workhorse as we value their best in class innovation and experience in ramping up production and enabling us in providing a complete solution to our customers.," Workhorse Chief Executive Duane Hughes said in a statement.

Workhorse shares at last check jumped 9.3% to $17.91. 

Hitachi will help the electric-vehicle producer develop a national dealer network and support, and a sales apparatus with vehicle-financing options for dealers and customers. 

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"Workhorse is primed to build on our early leadership position as the only last-mile EV distributor selling vehicles for commercial use across the country," Hughes said.

"In addition, we believe Hitachi can help the company drive customer orders as a well-known and respected player in the commercial leasing and finance industry." 

Meanwhile, Hitachi says it will help Workhorse accelerate the rollout of its EV solutions to "meet growing customer demand in North America," said Hicham Abdessamad, chief executive of Hitachi's global social innovation business.

Workhorse received an initial purchase order for 20 C-1000 trucks from eTrucks in July and also delivered two C-1000 electric step vans to Ryder System.  (R) - Get Ryder System, Inc. Report

In its second-quarter earnings release earlier this month, the company also affirmed its production and delivery target of between 300 and 400 vehicles in 2020.