PACCAR, Inc. engages in the design, manufacture, and distribution of light, medium and heavy-duty trucks and related aftermarket distribution of parts. The Company also provides finance and leasing services to customers and dealers. The Company’s finance and leasing activities are principally related to company products and associated equipment. Other manufactured products include industrial winches.
Trucks
The Company, through its subsidiaries, designs and manufactures heavy-duty diesel trucks which are marketed under the Peterbilt, Kenworth, and DAF nameplates. These vehicles, which are built in four plants in the United States, three in Europe and one each in Australia, Canada, and Mexico, are used worldwide for over-the-road and off-highway hauling of freight, petroleum, wood products, construction and other materials.
The company's trucks and related parts are sold to independent dealers. The Kenworth and Peterbilt nameplates are marketed and distributed by separate divisions in the U.S. and a foreign subsidiary in Canada. The Kenworth nameplate is also marketed and distributed by foreign subsidiaries in Mexico and Australia. The DAF nameplate is marketed and distributed by a foreign subsidiary headquartered in the Netherlands. A U.S. division, PACCAR International, also markets all three nameplates outside each of their primary markets.
The Company’s truck operations, major components, such as engines, transmissions and axles, as well as a substantial percentage of other components, are purchased from component manufacturers pursuant to PACCAR and customer specifications. DAF, which is vertically integrated, manufactures its own engines and axles and other components for its heavy truck models.
Other Business
The Truck and Other businesses include a division of the company which manufactures industrial winches in two U.S. plants and markets them under the Braden, Carco, and Gearmatic nameplates.
Financial Services
In North America, Australia and 13 European countries, the company provides financing and leasing arrangements, principally for its manufactured trucks, through wholly owned finance companies operating under the PACCAR Financial or PacLease trade names. They provide inventory financing for independent dealers selling PACCAR products, and retail and lease financing for new and used trucks and other transportation equipment sold by its independent dealers.
The Company also conducts service leasing operations through wholly owned subsidiaries in North America under the PacLease trade name. Selected dealers in North America are franchised to provide service leasing. The Company provides its franchisees equipment financing and managerial support. The Company also operates service lease outlets on its own behalf.
Suppliers and Competition
The Company’s DAF subsidiary purchases assembled cabs from a competitor, Renault V.I., for its European light-duty product line pursuant to a joint product development and long-term supply contract.
History
PACCAR, Inc. was founded in 1905.
