Paccar

PACCAR Inc
Public
Traded as NASDAQ: PCAR
S&P 500 Component
Industry Heavy equipment
Automotive
Engines
Powertrain
Truck components
Financial services
Information technology
Founded 1905[1]
Headquarters Paccar Tower
777 106th Avenue N.E.
Bellevue, Washington, USA
Area served
 Worldwide
Key people
 Mark C. Pigott, Executive Chairman[2]
Ronald E. Armstrong, CEO[3]
Products
Revenue Increase $17.0505 billion USD (2012)[4]
Increase $1.967 billion USD (2012)
Increase $1.111 billion USD (2012)
Total assets Increase US$ 18.834 billion (31 March 2013)[4]
Total equity Increase US$ 7.364,7 billion (December 31, 2011)[4]
Number of employees
 22,800 (2012)[5]
Divisions Kenworth
Peterbilt
Subsidiaries
Website www.paccar.com

PACCAR Inc. is a Fortune 500 company[8] and counts among the largest manufacturers of medium- and heavy-duty trucks in the world,[9][10] and has substantial manufacturing in light and medium vehicles through its various subsidiaries. For its leadership in the development of aerodynamic, lightweight commercial vehicles that has led to reduced fuel consumption and increased efficiencies, PACCAR, Inc was awarded the National Medal of Technology at the White House in 2006.[11][12] The company’s presence has been especially strong in Renton, Washington, where it remains the oldest continually operating business. PACCAR's assembly plant in Renton was recognized as one of the best workplaces for commuters for the fifth consecutive year by the National Center for Transit Research in June 2013. The plant also celebrated its 20th anniversary in June 2013 and has produced more than 130,000 heavy-duty and medium-duty Kenworth trucks since it started its operations in 1993.[13][14][15]

History

Seattle Car and Foundry works at Renton, Washington, 1916.

PACCAR Inc started as Seattle Car Manufacturing Company in 1905 with a capitalization of $10,000 and was founded by William Pigott, Sr., its original business was the production of Railway and Logging equipment. The company built a new factory in Renton in 1909 after its Duwamish facility was destroyed in fire as well as to fulfill large number of orders.[16] In 1917 it merged with a Portland firm, Twohy Brothers which was its only competitor on the west coast at the time and company was renamed as Pacific Car and Foundry Company. The company manufactured horse or oxen-drawn logging trucks built specifically to address the dense, hilly forests in which the Northwest logging industry operated to transport massive logs. The following years the company specialized in designing air brakes, open cars, refrigerated boxcars for shipment of perishable items and the universal trailer which could be pulled by a truck.[17] The company also manufactured structural steel that was finished by hand that was used to create columns and girders that went into many a Seattle landmark building.[18][19] In 1924, the founder, William Pigott sold a controlling interest in the company to American Car and Foundry Company. However, his son, Paul Pigott reacquired a significant interest in the company from American Car and Foundry Company in 1934.[20][21]

During the Great Depression in 1930 despite the stock market crash, the company's earnings rose; but as the Great Depression deepened, Pacific Car and Foundry became one of the most depressed businesses in the Northwest.[22] During the late 1930s, Pacific Car and Foundry received government contracts for steel fabrication for construction of Lacey V. Murrow Memorial Bridge as well as orders from other companies.[23]

During World War II

During World War II, Pacific Car and Foundry’s sales grew due to an increased demand for steel used in airplanes, airports, bridges, naval ships, highways and other equipment that helped build America’s infrastructure to support the war effort. Pacific Car also sub-contracted for Boeing, building aluminum wingspans for B-17 bombers. During the spring of 1942 the company also built Sherman M4-A1 tanks for the U.S. Army. The company was able to cast almost all the parts for the tanks at its own foundry. Other notable vehicles that were built included the M25 Tank Transporter, known as the Dragon Wagon, and the T28 Super Heavy Tank.[19] Everett-Pacific Shipbuilding & Dry Dock Company was established in 1942 that built ships and other marine products for the US Navy in Port Gardner Bay in Everett. It was bought by Pacific Car and Foundry in 1944.[24]

Post war

PACCAR's History in the 1900s. Clockwise from top: Seattle Car Mfg in 1909, Pacific Car & Foundry's Railroad car in 1950, Kenworth T-10 truck and T28 Super Heavy Tank during WW 2

After World War II ended, Pacific Car was a part of the federal government’s Mobilization Planning Program, which meant that it promised to devote 100 percent of its facilities to military production in the event of a national emergency. The company was a prime contractor during the Korean conflict for producing tanks. Pacific Car chose to subcontract many of the necessary parts, boosting smaller businesses in the state.[19][25][26] In 1945 Pacific Car purchased the Kenworth Motor Truck Corporation which was named after the stockholders Harry Kent and Edgar Worthington.. Kenworth had been producing trucks in Seattle since it was incorporated in 1923. During World War II, Kenworth produced trucks, airplane assemblies and sub-assemblies for the United States military. As the war drew to an end Kenworth shifted attention to production of commercial trucks for the postwar market. In 1956 Kenworth lost independent status and became a division directly under Pacific Car and Foundry.[27]

In 1954, Pacific Car acquired the Dart Truck Company of Kansas City, Missouri, and the Peterbilt Motors Company, of Oakland, California. Dart built primarily heavy off-highway dump trucks and specialty vehicles. Peterbilt had been a major competitor with Kenworth, producing many kinds of trucks and buses. Peterbilt operated as Pacific Car’s wholly owned subsidiary until 1960, following which it was dissolved and made a division of Pacific Car and Foundry.[28][29][30] Pacific Car’s structural steel division made the steel used to build the 50-story Seattle-First National Bank headquarters and to build Seattle’s Space Needle in 1961. The firm provided 5,668 steel panels, weighing 58,000 tons, which formed a major part of the load bearing walls for New York City's World Trade Center twin towers. The World Trade Center, like the Sea-First building, bore the building’s load on the exterior walls rather than on an interior structural skeleton. The steel panels were shipped by rail from Seattle to New York City on more than 1,600 railcars. Pacific Car was the largest contractor of the 13 steel fabricators that provided steel for the World Trade Center towers.[17][31][32][33]

Challenges from 1970s to 1990s

Despite a serious slowdown due to National Recessions during 1974, PACCAR continued to generate increasing sales throughout the 1970s. PACCAR purchased Wagner Mining Company in 1975, which built underground Mining Vehicles, International Car Company in 1975 and Foden Trucks a British truck manufacturer in 1980.[34][35] Fodens sold trucks in Europe and Africa.[36][37][38] PACCAR International was formed in 1972 that promoted exports worldwide.[39][40] PACCAR Technical Center was established in 1980 in Mount Vernon, Washington as a research and testing facility. The facility included test tracks, engine test cells, materials test laboratories and structural laboratories. The tech center conducts an Open House event every April that coincides with the Skagit Valley Tulip Festival.[41][42] In 1984 PACCAR posted record sales in its history of $2.25 billion.[43][44]

In the mid 1980s, PACCAR's share of Class 8 trucks dropped to about 18% owing to aggressive competition from Freightliner Trucks, which is a subsidiary of Daimler AG and the merged operations of Volvo White and General. This competition forced PACCAR to close its Kenworth assembly plant in Kansas City in April, 1986 and it's Peterbilt plant in Newark, California, the following October.[45] PACCAR acquired Trico Industries in 1986 which was a manufacturer of oil exploration equipment based in Gardena, California for $65 million in order to reduce its dependence on the Class 8 Truck market.[46][47] During the mid-80's PACCAR was negotiating with the Rover Group, for acquiring its British Leyland truck division. However, Rover management decided to sell the truck division to DAF Trucks which was a Dutch automotive concern. Its Dart Truck Company and Wagner Mining Equipment Company were sold in 1984 and 1989 in order to remain profitable.[48][49] In 1987, PACCAR acquired Al’s Auto Supply and Grand Auto Incorporated which led to its entry into the automotive parts & accessories retail market that gave the company greater ability to weather periods of national economic downturn.[50][51][52]

The 1990s and beyond

PACCAR Parts was created in 1992 in Renton, Washington. The building it was housed in occupied part of the company’s historic Pacific Car and Foundry site. In the same year, PACCAR purchased a 21 percent stake in Wood Group ESP which added to its oil field equipment manufacturing.[53][54][55] In 1993, PACCAR acquired a line of winches from heavy equipment manufacturer Caterpillar. The same year it brought a new plant in Washington on line to help meet the increased demand for trucks. In 1994 the company began selling in New Zealand for the first time and entered new countries in Asia and Central and South America. The company made its Mexican joint venture VILPAC, S.A., a wholly owned subsidiary in 1995. PACCAR's Winch division was one of the world’s largest manufacturer of industrial winches by 1994.[56][57]

PACCAR International marketed trucks to more than 40 countries, and was one of the largest exporters of capital goods in North America by 1995. Kenworth truck factory in Renton, Washington was opened on June 4, 1993.[58] In 1997 Mark Pigott assumed PACCAR's presidency as Charles Pigott retired in 1997.[59] In 1996 & 1998 the company spent $543 million to acquire DAF Trucks N.V. based in the Netherlands and Leyland Trucks Ltd., an acquisition it first pursued back in the mid-1980s. These acquisitions were funded in part by the sale of Trico Industries to EVI in 1997.[60][61][62][63] Financial and leasing subsidiaries also performed well in the late 1990s. Also, in 1998 PACCAR acquired UK-based Leyland Trucks for its light and medium truck (6 to 44 metric tons) design and manufacture capability. With its Peterbilt, Kenworth, and DAF nameplates, PACCAR ranks second in production numbers in the United States and third in production numbers globally in "big rig" truck production; behind Daimler AG in the US market. Other Major heavy-truck competitors include Navistar International and AB Volvo.[64][65][66][67]

Subsidiaries

Paccar MX engine

Financials

Fiscal Year Revenue (Billions USD)
2014 $18.99[68]
2013 $17.12[69]
2012 $17.06
2011 $16.36
2010 $10.29
2009 $8.09
2008 $14.97
2007 $15.22

Criticism

In December 2011, the non-partisan organization Public Campaign criticized PACCAR for spending $0.76 million on lobbying and not paying any taxes during 2008-2010, instead getting $112 million in tax rebates, despite making a profit of $465 million.[70]

See also

References

  1. ↑ "Beginnings of PACCAR Inc". Washington State History Encyclopedia. 4 Feb 2005. Retrieved 25 Jun 2013.
  2. ↑ "PACCAR Inc". Reuters Markets. 30 Dec 2012. Retrieved 28 Jun 2013.
  3. ↑ "PACCAR Board of Directors". PACCAR Inc. Retrieved 2 May 2014.
  4. 1 2 3 "Paccar Announces Record Quarterly Revenues and Excellent Profits" (PDF). PACCAR Inc. Retrieved 26 May 2013.
  5. ↑ "2012 Annual Report" (PDF). Paccar Inc. Retrieved 26 May 2013.
  6. ↑ "PACCAR's DAF to gain share in Czech Tatra". Reuters. 2 Aug 2011. Retrieved 25 Jun 2013.
  7. ↑ "Tatra & DAF Trucks sign Cooperation Agreement". Tatra Trucks A.S. 2 Aug 2011. Retrieved 25 Jun 2013.
  8. ↑ "CNN Fortune 500 list". Retrieved June 2013.
  9. ↑ "Heavy & Medium Duty Market Research Report" (PDF). PRWeb. Retrieved 26 May 2013.
  10. ↑ "DAF trucks at New Delhi AutoExpo". Trade Development Alliance of Greater Seattle. 10 Jan 2012. Retrieved 25 June 2013.
  11. ↑ "Paccar awarded national medal of technology". CCJ digital. 15 February 2006. Retrieved 25 June 2013.
  12. ↑ "PACCAR Inc honored with National Medal of Technology". Automotive World. 22 February 2006. Retrieved 25 June 2013.
  13. ↑ "Paccar Inc bringing back laid off workers". The News Tribune. 30 Nov 2010. Retrieved 25 June 2013.
  14. ↑ "Kenworth's Renton plant receives Commuter's award". CCJ Digital Magazine. 19 Jun 2013. Retrieved 25 June 2013.
  15. ↑ "Kenworth's Renton Plant Celebrates 20 Years". Renton Reporter. 14 Jun 2013. Retrieved 26 June 2013.
  16. ↑ "King county fire district" (PDF). Seattle.gov. Retrieved 20 Jun 2013.
  17. 1 2 "Pacific Car & Foundry/". midcontinent.org. 30 Dec 2006. Retrieved 20 Jun 2013.
  18. ↑ "Paccar's rough road". The Seattle Times. 24 Sep 2004. Retrieved 25 Jun 2013.
  19. 1 2 3 Groner, Alex; Provorse, Barry (2005). PACCAR: The Pursuit of Quality (4th ed.). Documentary Media LLC. ISBN 978-0-971-90847-5. Retrieved 26 Jun 2013.
  20. ↑ "NW History, Lumber Industry & By-products". WSU Library. Retrieved 25 June 2013.
  21. ↑ "PACCAR Heritage". Paccar Inc. Retrieved 26 June 2013.
  22. ↑ "Pacific Car & Foundry Co.". Coach bult. Retrieved 18 Jun 2013.
  23. ↑ "King county timeline". WSU Library. Retrieved 26 Jun 2013.
  24. ↑ "Everett Pacific Shipbuilding". Retrieved 27 Jun 2013.
  25. ↑ "WWII Mobilization". U.S. Army Center of Military History. Retrieved 20 June 2013.
  26. ↑ "1944 M-26A1 Pacific Car Tank Transporter and Fruehauf trailer". Militaryvehicleweb.com. Retrieved 27 Jun 2013.
  27. ↑ "The History of Kenworth Motor Truck Company". Digital Term Papers. Retrieved 15 Jun 2013.
  28. ↑ "History of Paccar inc". Fundinguniverse.com. Retrieved 27 Jun 2013.
  29. ↑ "Peterbilt History". Peterbilt of Louisiana. Retrieved 27 Jun 2013.
  30. ↑ "History of Peterbilt trucks". Peterbilt of Louisiana. Retrieved 27 Jun 2013.
  31. ↑ "Seattle 1st National Bank, Incorporated, Headquarters Building #2, Downtown". WSU Library. Retrieved 15 Jun 2013.
  32. ↑ "TRADE CENTER BUILDS UPWARD FAST". 911research.wtc7.net. Retrieved 15 Jun 2013.
  33. ↑ "SOME ARTICLES FROM ENGINEERING NEWS RECORD.". guardian.150m.com. Retrieved 15 Jun 2013.
  34. ↑ "Wagner, The early years". Atlas Copco. Retrieved 25 Jun 2013.
  35. ↑ "1982 PACCAR Annual Report". WSU Library. Retrieved 18 Jun 2013.
  36. ↑ "Paccar Inc, Company profile from Hoover's". Hoover's. Retrieved 28 Jun 2013.
  37. ↑ "Foden, yesterdays work horses". Road transport hall. Retrieved 29 Jun 2013.
  38. ↑ "Edwin Foden, Sons and Co of Elworth Works, Sandbach produced commercial vehicles". Gracesguide.co.uk. Retrieved 29 Jun 2013.
  39. ↑ "History of Paccar International". Paccar International Inc. Retrieved 28 Jun 2013.
  40. ↑ "Paccar Inc News". NY Times. Retrieved 28 Jun 2013.
  41. ↑ "PTC Open House". Tulipfestival.org. Retrieved 20 Jun 2013.
  42. ↑ "PACCAR Tech Center Opn House". Paccar Inc. Retrieved 29 Jun 2013.
  43. ↑ "PACCAR INC reports earnings for Qtr to June 30". NY Times. 24 Jun 1984. Retrieved 27 Jun 2013.
  44. ↑ "Making trucks more efficient helps Paccar boost its sales". Puget Sound Business Journal. 3 May 2013. Retrieved 25 Jun 2013.
  45. ↑ "Pacific Car and Foundry Annual Report". WSU Library. Retrieved 30 Jun 2013.
  46. ↑ "COMPANY NEWS; PACCAR Increases Its Stake in Trico". NY Times. 28 Nov 1986. Retrieved 26 Jun 2013.
  47. ↑ "Trico Industries sold to Evi Inc.". San Antonio Business Journal. 7 Dec 1997. Retrieved 30 Jun 2013.
  48. ↑ "A brief history of British Leyland" (PDF). Sabcc.com. Retrieved 30 Jun 2013.
  49. ↑ "British Leyland History". Britishcarcouncil.com. Retrieved 30 Jun 2013.
  50. ↑ "CSK Auto to buy Paccar parts subsidiary". The New York Times. 24 Aug 1999. Retrieved 20 Jun 2013.
  51. ↑ "PACCAR To Sell Auto-Parts Unit, Focus On Trucks". The Seattle Times. 23 Aug 1999. Retrieved 8 Jul 2013.
  52. ↑ "Paccar sells retail automotive parts group". Puget Sound Business Journal. 23 Aug 1999. Retrieved 25 Jun 2013.
  53. ↑ "Paccar Parts celebrates its 40th anniversary in 2013". Truckpr.com. 1 May 2013. Retrieved 2 Jul 2013.
  54. ↑ "Pacific Car and Foundry building exterior in Renton, WA". WSU Library. 2 Aug 1984. Retrieved 3 Jul 2013.
  55. ↑ "PACCAR INC., FORM 10-K, SECURITIES AND EXCHANGE COMMISSION, WASHINGTON, D.C. 20549". Barchart.com. 31 Dec 1993. Retrieved 8 Jul 2013.
  56. ↑ "PACCAR Inc. To Increase Stake In Mexican Truck Maker". The Seattle Times. 17 Dec 1993. Retrieved 6 Jul 2013.
  57. ↑ "PACCAR REPORTS STRONGER EARNINGS FOR QUARTER". Apnewsarchive.com. 19 Jul 1995. Retrieved 8 Jul 2013.
  58. ↑ "America's Elite Factories Whether it's trucks, circuit breakers, or critical aircraft parts, no plant turns them out with less waste motion or leaner inventories than these paragons of productivity.". CNN Money. 14 Aug 2000. Retrieved 21 Jun 2013.
  59. ↑ "Top Executive At Paccar Plans To Retire". The Seattle Times. 1 May 1996. Retrieved 6 Jul 2013.
  60. ↑ "Paccar Considers Takeover of Trico". The New York Times. 18 Nov 1986. Retrieved 30 Jun 2013.
  61. ↑ "Paccar Increases Its Stake in Trico". The New York Times. 28 Nov 1986. Retrieved 25 Jun 2013.
  62. ↑ "How Peterbilt & Kenworth trace their history to trains". DieselPower Magazine. Feb 2011. Retrieved 5 Jul 2013.
  63. ↑ "PACCAR buying Dutch Truck Maker for $543 million". The New York Times. 8 October 1996. Retrieved 8 July 2013.
  64. ↑ "Class 8 Truck sales near 10,000 in July". Truckinginfo.com. 12 Aug 2010. Retrieved 27 Jun 2013.
  65. ↑ "US truck sales surged in 2011". FleetOwner.com. 19 Jan 2012. Retrieved 27 Jun 2013.
  66. ↑ "US Class 8 sales down lightly from March, still strong". The Trucker. 14 May 2012. Retrieved 28 Jun 2013.
  67. ↑ "U.S. Class 8 sales top 15K in February; Freightliner posts 5-year high". The Trucker. 13 Mar 2012. Retrieved 28 Jun 2013.
  68. ↑ "PACCAR Reports Record Annual Revenues Strong North American Truck Market Generates Higher Profits". PACCAR Current News. 30 January 2015. Retrieved 5 May 2015.
  69. ↑ "PACCAR Reports Record Annual Revenues New Products and Strong Aftermarket Business Generate Higher Profits". PACCAR Current News. 31 January 2014. Retrieved 5 May 2015.
  70. ↑ Portero, Ashley. "30 Major U.S. Corporations Paid More to Lobby Congress Than Income Taxes, 2008-2010". International Business Times. Archived from the original on 26 December 2011. Retrieved 26 December 2011.

Notes

External links

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