Shyft Group's new Blue Arc launching medium-duty electric vans, trucks (updated)

Shyft

30/05/2023 19:15

(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)
 ((Paul.Lienert@thomsonreuters.com; mobile +1 313-670-2452;))