PACCAR to Expand European Operations
3 September 1998
PACCAR to Expand European Operations
BELLEVUE, Wash.--Sept. 2, 1998--PACCAR Inc today confirmed that it will invest approximately $25 million to expand production at its DAF Trucks facilities in the Netherlands and Belgium and at its newly acquired Leyland factory in Great Britain, according to Mark C. Pigott, PACCAR chairman and CEO.
"We are very enthusiastic about the real opportunities to exploit the many synergies between PACCAR's different companies in Europe. Today's announcement underscores that enthusiasm and will enable us to deliver top-quality products to even greater numbers of customers in Europe and beyond," said Pigott.
The expansion comes as a result of increased sales in Western Europe, where DAF's growing market share is approximately 10 percent for trucks over 15 tons, due to new product ranges that have been excellently received in all markets. In addition, DAF has increased its activities outside of Western Europe, particularly in Poland, Hungary and the Czech Republic where the company now has its own sales subsidiaries.
DAF anticipates truck sales to be on a structurally higher level in the years ahead than in previous years. In 1998, DAF expects to sell more than 26,000 trucks over 15 tons, an increase of 10 percent over 1997. Between 1994 and 1997, sales increased by 80 percent from 13,280 trucks to 23,700. This month, production of DAF Trucks in the same class will reach 110 units per day. The expansion will enable DAF to produce up to 130 trucks a day to support increasing customer demand.
All DAF 95XF models, together with left-hand-drive versions of the DAF 75CF and 85CF models, will be produced in the Eindhoven and Westerlo plants, representing annual production of approximately 23,500 trucks at a total average output of 100 trucks per day. Leyland Trucks will assemble right-hand-drive versions of the DAF 75CF and 85CF Series along with left-hand-drive versions of the DAF 65CF, equaling roughly 4,500 trucks per year, most of which will be marketed primarily in the U.K. Leyland Trucks also will continue to assemble the Class 4-7 DAF 45 and 55 Series Trucks.
PACCAR, a $6.5 billion company, is a leader in the design, development and manufacture of high quality light-, medium- and heavy-duty trucks. Last year, the company sold more than 79,000 trucks worldwide under the Kenworth, Peterbilt, DAF and Foden nameplates. It also provides financial services and distributes truck parts related to its principal business. In addition, the Bellevue, Wash.-based company manufactures industrial winches and sells general automotive parts and accessories through its retail outlets.
PACCAR shares are traded on the NASDAQ Exchange, symbol PCAR, and its homepage can be found at www.paccar.com