The Shyft Group Secures ZEPCert and GHG Certifications for Blue Arc™ EV Truck

Rhea-AI Summary

The Shyft Group (NASDAQ: SHYF) has announced that its Blue Arc™ Class 4 EV truck has received Zero-Emission Powertrain Certification (ZEPCert) and a Heavy-Duty Greenhouse Gas (GHG) Enhanced Electric Executive Order from the California Air Resources Board (CARB). These certifications allow Blue Arc trucks to be sold across all 50 states, providing nationwide access to advanced commercial-grade EV solutions.

Additionally, the Blue Arc EV truck is now eligible for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), offering substantial financial incentives for customers. This program, along with other state and federal incentives, can result in significant cost savings and faster ROI for fleet operators transitioning to electric vehicles.

Positive

• Blue Arc EV truck received ZEPCert and GHG certifications from CARB
• Certifications allow Blue Arc trucks to be sold in all 50 states
• Blue Arc EV truck is eligible for HVIP financial incentives
• Customers can access additional state and federal incentive programs

Negative

• None.

Insights

Financial Analyst

The ZEPCert and GHG certifications for Shyft Group's Blue Arc™ EV truck are significant milestones that open up substantial market opportunities. This approval allows sales across all 50 states, potentially expanding Shyft's customer base and revenue streams. The inclusion in the HVIP program is particularly noteworthy, as it offers financial incentives that could accelerate adoption rates.

From an investor's perspective, these developments could positively impact Shyft's market position and financial performance. The expanded market access and potential cost savings for customers through incentives may drive increased demand, potentially leading to higher sales volumes and improved profit margins. However, investors should also consider the competitive landscape in the EV truck market and Shyft's ability to capitalize on these opportunities effectively.

Environmental Policy Expert

The certifications from CARB represent a significant achievement in environmental compliance for Shyft Group. These approvals validate the company's commitment to producing vehicles that meet stringent emissions standards, positioning them favorably in the growing market for sustainable transportation solutions.

The inclusion in the HVIP program is particularly impactful, as it aligns Shyft's products with government initiatives to reduce greenhouse gas emissions in the transportation sector. This could lead to increased adoption of Shyft's EV trucks, especially among fleets looking to meet regulatory requirements or corporate sustainability goals. Investors should note that as environmental regulations tighten globally, companies like Shyft that are ahead in zero-emission technology may see increased demand and potential for market share growth.

Automotive Industry Analyst

Shyft Group's achievement of these certifications positions them as a serious contender in the commercial EV market. The ability to sell across all 50 states gives them a significant advantage, especially as many competitors are still to specific regions. The Blue Arc™ truck's eligibility for HVIP incentives could be a game-changer for fleet operators considering the switch to electric vehicles.

However, investors should be aware that the commercial EV space is becoming increasingly competitive, with both established automakers and new entrants vying for market share. Shyft will need to leverage these certifications and incentives to rapidly scale production and sales to establish a strong foothold. The company's success will depend on factors such as production capacity, charging infrastructure partnerships and after-sales service network. While these developments are positive, the long-term impact on Shyft's market position remains to be seen.

Nationwide Access to Innovative EV Solutions and Significant Financial Incentives for Customers

NOVI, Mich., Sept. 5, 2024 /PRNewswire/ -- The Shyft Group, Inc. (NASDAQ: SHYF), the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets, has announced that its Blue Arc™ Class 4 EV truck has received both Zero-Emission Powertrain Certification (ZEPCert) and a Heavy-Duty Greenhouse Gas (GHG) Enhanced Electric Executive Order from the California Air Resources Board (CARB). These certifications allow Shyft's Blue Arc trucks to be sold across all 50 states, providing customers with access to cutting-edge, commercial-grade EV solutions.

"Achieving ZEPCert and GHG certifications validates the performance and reliability of our zero-emission powertrains, boosting confidence in the durability and efficiency of our EV trucks," said John Dunn, President and CEO of the Shyft Group. "This underscores our commitment to delivering advanced, environmentally responsible solutions that facilitate the transition to electrified fleets and contribute to a greener future."

In addition to these certifications, the Blue Arc EV truck is now listed as an eligible purchase in the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). This program offers substantial financial incentives, with additional adjustments for small fleets and disadvantaged communities, promoting the adoption of cleaner, quieter, and more efficient commercial trucks through point-of-sale discounts. Customers in states with zero-emission truck regulations can also benefit from a range of other state and federal incentive programs, resulting in significant cost savings and a faster return on investment for fleet operators transitioning to electric vehicles.

About The Shyft Group
The Shyft Group is the North American leader in specialty vehicle manufacturing, assembly, and upfit for the commercial, retail, and service specialty vehicle markets. Our customers include first-to-last mile delivery companies across vocations, federal, state, and local government entities; the trades; and utility and infrastructure segments. The Shyft Group is organized into two core business units: Shyft Fleet Vehicles and Services™ and Shyft Specialty Vehicles™. Today, its family of brands include Utilimaster®, Blue Arc™ EV Solutions, Royal® Truck Body, DuraMag® and Magnum®, Strobes-R-Us, Spartan® RV Chassis, Red Diamond™ Aftermarket Solutions, Builtmore Contract Manufacturing™, and Independent Truck Upfitters. The Shyft Group and its go-to-market brands are well known in their respective industries for quality, durability, and first-to-market innovation. The Company employs approximately 3,000 employees and contractors across campuses, and operates facilities in Arizona, California, Florida, Indiana, Iowa, Maine, Michigan, Missouri, Pennsylvania, Tennessee, Texas, and Saltillo, Mexico. The Company reported sales of $872 million in 2023. Learn more at TheShyftGroup.com.

This release contains information, including our sales and earnings guidance, all other information provided with respect to our outlook for 2024 and future periods, and other statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using words such as "believe," "expect," "intend," "potential," "future," "may," "will," "should," and similar expressions or by using future dates in connection with any discussion of, among other things, the construction or operation of new or existing facilities, operating performance, trends, events or developments that we expect or anticipate will occur in the future, statements relating to volume changes, share of sales and earnings per share changes, anticipated cost savings, potential capital and operational cash improvements, changes in supply and demand conditions and prices for our products, trade duties and other aspects of trade policy, statements regarding our future strategies, products and innovations, and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements are not historical facts, but instead represent only the Company's beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to the risks and uncertainties described in "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and those described from time to time in our future reports filed with the Securities and Exchange Commission (SEC), which are available at www.sec.gov or our website. All forward-looking statements in this release are qualified by this paragraph. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to publicly update or revise any forward-looking statements in this release, whether as a result of new information, future events, or otherwise.

CONTACTS
MEDIA
Sydney Machesky
Director, Corporate Communications
Sydney.Machesky@theshyftgroup.com
586.413.4112

INVESTORS
Randy Wilson
Vice President, Investor Relations and Treasury
Randy.Wilson@theshyftgroup.com
248.727.3755

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SOURCE The Shyft Group, Inc.

FAQ

What certifications did The Shyft Group's Blue Arc EV truck receive?

The Blue Arc EV truck received Zero-Emission Powertrain Certification (ZEPCert) and a Heavy-Duty Greenhouse Gas (GHG) Enhanced Electric Executive Order from the California Air Resources Board (CARB).

How do the CARB certifications benefit The Shyft Group (SHYF)?

The certifications allow Shyft's Blue Arc trucks to be sold across all 50 states, providing nationwide access to their commercial-grade EV solutions.

What financial incentives are available for Blue Arc EV truck customers?

Customers can access substantial financial incentives through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), as well as other state and federal incentive programs.

How do the incentives impact fleet operators transitioning to Blue Arc EV trucks?

The incentives can result in significant cost savings and a faster return on investment for fleet operators transitioning to electric vehicles.