PACCAR 2011 Annual Report Download - page 6

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expectations by delivering the highest-quality products
and services in our history.
PACCAR’s product quality continued to be recognized
as the industry leader in 2011. Kenworth earned the
J.D. Power Heavy Duty Customer Satisfaction award for
Dealer Service. Peterbilt earned honors in the Heavy
Duty Vocational category. Kenworth’s T700, powered by
the PACCAR MX engine, earned the American Truck
Dealers heavy-duty “Commercial Truck of the Year” award.
Nearly 55% of PACCAR’s revenue was generated
outside the United States. The company has realized
excellent synergies globally in product development, sales
and finance activities, purchasing and manufacturing.
DAF maintained its leadership in the tractor market
and achieved a record 15.5% share in the overall
European 15+ tonne market. The PACCAR MX engine
has been honored as best-in-class at the Shanghai Bus
Show five years in a row.
Leyland Trucks is the United Kingdom’s leading
truck manufacturer. Leyland earned two prestigious
manufacturing awards in 2011 — the Shingo Bronze
Medallion and the “Business Development and Change
Award” at the annual Manufacturing Excellence Awards.
PACCAR Mexico (KENMEX) had a record year as the
Mexican economy improved and truck fleets increased
their purchases. Its manufacturing facility continues to
deliver outstanding product quality.
PACCAR Australia achieved good results in 2011,
as the country benefited from ongoing commodity
demand. The introduction of new Kenworth models
and expansion of the DAF product range in Australia
combined for a 20.4% heavy duty market share in 2011.
AFTERMARKET CUSTOMER SERVICES — PACCAR
Parts had a record year in 2011, as dealers and customers
embraced vehicle maintenance programs, integrated
customer logistics and billing systems. With sales of
$2.6 billion, PACCAR Parts is the primary source for
aftermarket parts and services for PACCAR vehicles, as
well as supplying parts for competitive brands to
PACCAR’s dealers around the world. Over six million
heavy duty trucks operate in North America and Europe,
and the average age of North American vehicles is
estimated to be seven years. The large vehicle parc and
aging industry fleet create excellent demand for parts
and service and moderate the cyclicality of truck sales.
PACCAR Parts expanded its facilities to enhance
logistics performance to dealers and customers.
PACCAR Parts continues to lead the industry with
technology that offers competitive advantages at
PACCAR dealerships. PACCAR Parts enhanced its
TRP program, an all-brands merchandise initiative
targeted at competitors’ vehicles. PACCAR Parts’ new
Santiago, Chile, distribution center enhanced its business
with Andean customers.
FINANCIAL SERVICES — PACCAR Financial Services’
(PFS) conservative business approach, coupled with
PACCAR’s superb S&P credit rating of A+ and the
strength of the dealer network, enabled PFS to earn
excellent results in 2011 as worldwide financial markets
steadily improved. PACCAR issued $982 million in
medium-term notes at attractive rates during the year.
The PACCAR Financial Services group of companies has
operations covering three continents and 21 countries.
The global breadth of PFS and its rigorous credit
application process support a portfolio of nearly 145,000
trucks and trailers, with total assets of $9.4 billion that
earned a pretax profit of $236 million. PACCAR
Financial Corp. (PFC) is the preferred funding source
in North America for Peterbilt and Kenworth trucks,
financing 24% of dealer Class 8 sales in the U.S. and
Canada in 2011. Interactive webcasts, strategically
located used truck centers and target marketing enabled
PFS to sell over 8,600 used trucks worldwide.
PACCAR Financial Europe (PFE) completed its tenth
year of operation, focusing on the financing of new and
used DAF trucks. PFE provides wholesale and retail
financing for DAF dealers and customers in 16 European
countries and financed over 23% of DAF’s 6+ tonne
vehicle sales in 2011.
PACCAR Leasing (PacLease) had a record year and
placed 6,700 new PACCAR vehicles in service in 2011.
The North American lease market improved and
PacLease Europe benefited as the German truck market
strengthened. The PacLease fleet is over 32,000 vehicles.
PacLease represents one of the largest full-service truck
rental and leasing operations in North America and
continued to increase its market presence in 2011,
growing its global network to 500 locations.