In the course of 1980, given the lack of competitiveness of the DN11, the Shadow team decided to produce a new model, with a shorter wheelbase. The DN12, designed by Morris and Chuck Graemiger, did not improve the team's critical situation. The DN12 appeared at the Belgian GP and a second specimen was prepared in time for the Spanish GP. The team owner had meanwhile become Teddy Yip and from the Spanish GP the car was entered as Theodore Shadow. The pilots were David Kennedy and Geoff Lees. The DN12 still competed in one GP in 1981 as a Theodore.