PACCAR 2012 Annual Report Download - page 6

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engineering, purchasing, materials and production
employees contributed to the launch of the most new
trucks in our history. Our factories were updated with
new robotic assembly cells to deliver industry-leading
product quality and efficiency.
PACCAR’s product quality continued to be recognized
as the industry leader in 2012. Kenworth earned the
J.D. Power Heavy Duty Customer Satisfaction award for
Dealer Service. Peterbilt’s Model 587, powered by the
PACCAR MX-13 engine, earned the American Truck
Dealers “2012 Heavy Duty Commercial Truck of the Year”
award and Peterbilt’s Model 210 was named “2012
Medium Duty Commercial Truck of the Year.”
One half of PACCAR’s revenues were 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 European tractor
market and achieved a record 16.0% share in the overall
European 16+ tonne truck market. The PACCAR MX-13
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 Manufacturing
Executive Magazine’s “2012 Manufacturing Leadership
Award for Operational Excellence” for the design and
implementation of its innovative Electronic Work
Instruction (EWI) System.
PACCAR Mexico (KENMEX) had a record year as the
Mexican economy improved, but the Latin America
truck markets were lower. Its manufacturing facility
continues to deliver outstanding product quality.
PACCAR Australia achieved record results in 2012, 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
23.2% heavy-duty market share in 2012.
AFTERMARKET CUSTOMER SERVICES — PACCAR
Parts had a record year in 2012, as dealers and customers
embraced vehicle maintenance programs, integrated
customer logistics and national billing programs. With
sales of $2.7 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,
trailers and buses. Construction of PACCAR Parts’ new
Eindhoven, Netherlands, distribution center will
enhance its European customers’ business. It will open
in April 2013.
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 2012. PACCAR issued $2.16 billion
in medium-term notes at attractive rates during the year.
The PACCAR Financial Services group of companies has
operations covering four continents and 23 countries.
The global breadth of PFS and its rigorous credit
application process support a portfolio of 154,000 trucks
and trailers, with total assets of $10.8 billion that
earned a pretax profit of $308 million. PACCAR
Financial Corp. (PFC) is the preferred funding source
in North America for Peterbilt and Kenworth trucks,
financing 23% of dealer Class 8 sales in the U.S. and
Canada in 2012. Interactive webcasts, strategically
located used truck centers, and target marketing enabled
PFS to sell over 8,000 used trucks worldwide.
PACCAR Financial Europe (PFE) completed its
eleventh 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 17
European countries and financed a record 24% of DAF’s
16+ tonne vehicle sales in 2012.
PACCAR Leasing (PacLease) had a record year,
placing 7,800 new PACCAR vehicles in service in 2012.
The PacLease fleet is 34,000 vehicles. PacLease