PACCAR Responds to European Truck Merger

9 August 1999

PACCAR Responds to European Truck Merger

    BELLEVUE, Wash.--(AutomotiveWire)--Aug. 6, 1999--The acquisition of Scania by Volvo is "no surprise to the industry," said Mark C. Pigott, PACCAR chairman and chief executive officer. "It is likely that there will be an extended period of adjustment by their customers, dealers, employees and suppliers as the issues related to the integration of the two companies are resolved."
    "This is further evidence that industry consolidation is accelerating. PACCAR with its excellent product brands -- Kenworth, Peterbilt, DAF and Foden -- outstanding balance sheet and strong global distribution network -- is poised for faster growth. PACCAR is an excellent company, and consolidation will make us even better," he added.
    PACCAR itself has been a driving force in the ongoing consolidation within the industry. Its successful acquisition of DAF Trucks in late 1996 and the subsequent purchase of Leyland Trucks in June of last year were important factors in the company's record earnings in 1998 and again in first half of 1999.
    As a result of these acquisitions, PACCAR has a major presence in Europe. In fact, PACCAR is 88th on Forbes magazine's current list of companies ranked according to size of revenues earned outside of the United States, with more than $3 billion in revenues generated in Europe, Canada, Mexico and Australia.
    "PACCAR is the most profitable truck OEM in the world. It is recognized as setting the standard for quality products, low-cost manufacturing and is the acknowledged technology leader, as evidenced by the selection of the DAF 95XF as European Truck of the Year last year and more recently by PACCAR's receipt of Society of Manufacturing Engineer's LEAD award for `innovative and leading edge manufacturing'," said Pigott.

    PACCAR, a $8 billion company, is a leader in the design, development and manufacture of high quality light-, medium- and heavy-duty trucks 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, Washington-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.