U.S. Government Contract Could Give Former GM Plants New Life

A major U.S. government contract could lead to the repurposing and reopening of former General Motors facilities.

According to reports, the United States Postal Service (USPS) is seeking a manufacturer to build what they are calling “next generation” delivery vehicles. The contract is reportedly for $6 billion and includes a 20-year parts supply deal. Two finalists for the contract have said they would manufacture the new delivery vehicles at previously shuttered GM plants.

India-based Mahindra & Mahindra has said it would build a plant on the site of the former “Buick City” facility in Flint, Mich. The facility opened in 1993 and was closed by GM in 2010 after the automaker filed for bankruptcy. Mahindra currently manufactures its Roxor off-road vehicles in Auburn Hills, Mich.

Electric truck manufacturer Workhorse Group is also in the running for the contract. They would manufacture the vehicles at GM’s former Chevy Cruze plant in Lordstown, Ohio. The automaker’s decision to restructure led to the closure of the facility in March.