In order for electric trucks and delivery vans to proliferate, the EV industry has some infrastructure issues to iron out.
One thing the space isn’t lacking, though, is choice. A mixture of legacy automakers and innovative startups have emerged to tackle the electric delivery challenge, and vehicle manufacturer and solutions provider The Shyft Group (NASDAQ: SHYF) is putting its name on the map.
The company, which operated for 45 years under the name Spartan Motors before rebranding in 2020, on Monday announced the certification of its Class 3, 4 and 5 Blue Arc electric delivery vehicles with the Environmental Protection Agency, setting a new high-water mark for EV fuel efficiency with 45 miles per gallon of gasoline-equivalent.
Additionally, EPA testing revealed that the Class 3 vehicle has a range of 200 miles with a 165 kilowatt-hour battery pack. For comparison, Ree Automotive’s P7-B can travel up to 150 miles, Cenntro’s LS300 hits 273 miles and Mullen Automotive’s Class 3 commercial model maxes out around 120 miles.
The EPA certification helps clear the way for Shyft to produce and sell its EVs across the U.S. The firm already has a preorder for 2,000 vehicles from Randy Marion Dealer Group, and assembly is expected to begin in the second half of 2023.
“With a range of 200 miles, this changes the game and opens up new possibilities for electrifying last-mile delivery,” said Shyft CEO Daryl Adams. “Our approach has been to focus on the engineering and product development of Blue Arc EVs, making sure we get that right first and foremost. When we get that right, and I believe we have, our customers are taking notice and we expect to secure additional production contracts in the near future.”
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According to Shyft, the vehicles are soon expected to be approved by the California Air Resources Board, a state-backed agency that calls for all new car, truck and SUV sales to be zero emission by 2035. The approval would qualify Blue Arc EVs for the state’s zero-emissions vehicle incentives.
Adding to the tailwinds, the company recently invested $16 million in its Charlotte, Michigan, production facility. Shyft President and CEO Daryl Adams highlighted the initiative last month on the company’s fourth-quarter 2022 earnings call, telling investors that further investments are on the horizon. Adams also said the firm expects to produce 200 to 250 units by year’s end.
The Shyft head executive explained that investments in Blue Arc contributed to the firm’s decline in profits, which sent shares tumbling at the end of February. The stock has lost nearly one-third of its value since April 2022 but has outperformed rivals Ree (NASDAQ: REE) and Cenntro (NASDAQ: CENN), both down about 83% over the same span.
Given the losses within the EV space, Shyft’s investments will be worth keeping an eye on as the industry attempts to reconcile mass production with profits.
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