Shyft Group's new Blue Arc launching medium-duty electric vans, trucks
Adds that Shyft combined its own chassis experience with its body and upfitting experience for Blue Arc vehicles, paragraph 7
By Paul Lienert
DETROIT, May 30 (Reuters) -Michigan-based Shyft Group SHYF.O, a multi-brand manufacturer of medium-duty specialty vehicles, is preparing to launch production this fall of a new line of electric trucks and vans under the Blue Arc brand.
"That's our wheelhouse - it's a segment we know and understand," Chief Executive Daryl Adams said in an interview.
Shyft is entering a small, but potentially lucrative, sector in which commercial trucking customers are starting to inquire about medium-duty electric vehicles. It expects to compete against startups such as Arrival SA 47K0.F and established manufacturers such as Daimler Trucks DTGGe.DE with its new Rizon brand.
Shyft said it plans to start pilot production this summer of its first Blue Arc vehicle, a step-in van, in Charlotte, Michigan, not far from its Novi headquarters.
The former Spartan Motors, which has built everything from fire trucks to motorhomes, in recent years has focused on a variety of medium-duty vehicles for commercial fleets. The new Blue Arc series of Class 3 to Class 5 vehicles was a logical extension, joining such familiar Shyft Group brands as Utilimaster, Builtmore and Duramag.
"We knew the traditional manufacturers would have their EVs in the (light duty) Class 2 space," Adams said. "We also knew that in (heavy duty) Class 6, 7 and 8, Peterbilt, PACCAR PCAR.O, Navistar, they're all going to have theirs eventually, so we stayed in our lane."
Adams said his team could not find an appropriate electrified medium-duty chassis from traditional suppliers such as Ford Motor Co F.N and Freightliner, and small electric "skateboards" from EV startups were not rugged enough. So he elected with Blue Arc to marry the company's own chassis building experience with that of its Utilimaster body and upfitting experience.
"The potential volume in the 'walk-in' vehicle space isn't that big," Adams said. "There's a lot of variety there, but not a lot of volume. So the key for us is partnering, which we've done with high-quality automotive suppliers like Dana, Bosch and Akebono."
With the Charlotte plant slated to begin regular production this fall of Blue Arc vehicles, Adams said the plan is to build 200 this year, growing to 2,500 in 2025. By then, Adams said he expects the Blue Arc business to account for around $500 million in sales, or roughly a third of the company's revenues.
Already, one of Shyft Group's largest dealer/distributors has placed an advance order for 2,000 Blue Arc vehicles, according to Adams.
"Our differentiator is that we have knowledge of the customers, and we have operational experience," Adams said. "I like to say we're the 'anti-startup.'"
Reporting by Paul Lienert in Detroit; Editing by Will Dunham
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
