The USPS plans to buy a mix of electric and gasoline-powered Postal Service vehicles. Ford will provide parts for both the electric battery and internal combustion engine versions, including engines and transmissions made in Michigan, along with suspensions and other components, Ford said, declining to release financial terms.

Oshkosh Defense, a subsidiary of Oshkosh Corp, in February won a contract from the USPS that could be worth more than $6 billion in total. Oshkosh said Tuesday it will assemble the delivery vehicles in South Carolina.

(Reporting by David Shepardson; editing by Jonathan Oatis)