27 October 2023
Specialty vehicle manufacturer Shyft Group Inc. has found a new president and CEO in John Dunn, a veteran executive in automotive supply who takes the reins of a company mired in supply issues.
Dunn, who’s been with Shyft since the beginning of the year, was appointed to lead the company effective Thursday, according to a news release. He takes over for Daryl Adams, who had been top executive since 2014 and will serve in an advisory role for six months. He was to resign as CEO and board member once his successor was named.
Dunn joined Shyft in January as president, fleet vehicles and services, after 25 years leading auto suppliers. He was president and CEO, Americas, for Plastic Omnium for nine years, and before that worked for 16 years at Brose North America, where he rose to be president.
“I am confident in our team’s resilience and ability to deliver great products across our leading brands, increase shareholder value, and strengthen Shyft’s workplace culture,” Dunn said in the release.
Shyft has made a big push toward electrification. Under its Blue Arc umbrella, the company has sought to become a major player in supplying electric delivery vans to its customers, which include Amazon, UPS and FedEx. However, the space has become crowded with startups looking to crack into EVs and major automakers aiming to bolster their commercial vehicle business.
Shyft also hit a speed bump with battery supply issues that has resulted in production delays, Adams said on a call with investment analysts Thursday.
“The battery issues are certainly a gating item at this point,” he said. “We do talk about solid customer demand and interest. We obviously need to get through the battery issues before we let production go and move forward from that perspective.”
The company announced in 2022 that Proterra would supply batteries for its Blue Arc electric delivery van and EV chassis. Proterra filed for bankruptcy in August but said it plans to continue operating through the restructuring.
In March, Michigan-based Our Next Energy Inc. announced a deal with Shyft Group to supply 15,000 lithium iron phosphate battery packs for Class 3-5 trucks over the next five years.
Shyft (NASDAQ: SHYF) has seen a precipitous decline in stock value over the past year. Its price per share has fallen nearly 60 percent from a February peak near $34 to $11.33 as of Friday. It recorded third quarter sales of $210.3 million, down 30 percent year-over-year, and gross profit of $36.8 million, a 32 percent decline from the year prior.
“I am proud of how our team has transformed Shyft into an industry leader in our attractive end markets of last-mile delivery and infrastructure,” Adams said in the release. “Shyft is well-positioned with a growing roster of innovative brands with strong prospects. I look forward to working closely with John, ensuring a seamless leadership transition.”
The company, based in suburban Detroit, announced Adams’ impending departure in June. Adams, an automotive industry veteran, started at Shyft when it was named Spartan Motors and entrenched in the emergency vehicle business. Under his leadership, the financially struggling company pivoted to manufacturing last-mile delivery vehicles, a segment that boomed in tandem with e-commerce coming out of the COVID-19 pandemic.
Adams isn’t leaving empty handed. The outgoing CEO, who had a compensation totaling $3.4 million last year, will receive approximately $4.2 million in severance benefits, according to a company proxy statement filed with the Securities and Exchange Commission.
“On behalf of the Board and shareholders, I would like to thank Daryl for his many contributions over nine years at Shyft,” James Sharman, board chair, said in the release. “Under his tenure, the Company undertook an ambitious business transformation, and we are grateful for his leadership and dedication.”