Paccar announces new manufacturing, assembly facility

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Paccar Inc. has unveiled plans for a new $400 million powertrain manufacturing and assembly facility in the Southeast United States. “Paccar’s outstanding profits, excellent balance sheet and intense focus on quality, technology and productivity enhancements have enabled the company to consistently invest in its products, services and processes during all phases of the business cycle,” says Mark Pigott, chairman and chief executive officer of Bellevue, Wash.-based Paccar.

“Strong demand for high-quality DAF, Peterbilt and Kenworth products has resulted in record production and market share for Paccar worldwide,” Pigott says. “This significant investment in a new powertrain facility, as well as a technology center, will ensure that Paccar maintains its position of global technology leadership and meets customer requirements.”

Pigott says the 400,000-square-foot facility strengthens Paccar’s global manufacturing and assembly capability and positions the company to capitalize on growing opportunities in North America, Europe and Asia. “The $400 million investment in Paccar’s newest facility complements the $2.5 billion invested over the last 10 years to accelerate award-winning product development, Six Sigma implementation, customer after-sales support and dynamic information technology programs in our capital goods and financial services markets,” he says.

Construction of the facility will begin in mid-2007 and is targeted for completion in 2009, says Jim Cardillo, executive vice president. “Paccar has learned from DAF and its customers the performance and cost advantages of installing its own powertrain, as well as the benefits of additional aftermarket parts and service business for our dealers,” Cardillo says. “Offering a Paccar powertrain to our North American customers will provide additional choices in their vehicle specifications.”

Tom Plimpton, Paccar president, says the new facility “will be Paccar’s most technologically advanced facility and reinforces our efficient manufacturing platform that builds the highest-quality products in the industry. The manufacturing facility will be configured for maximum flexibility to supply products and components to Paccar facilities and customers on a global basis.”