Full Description

PACCAR Inc, incorporated in 1971, operates through two segments: design, manufacture and distribution of light-, medium- and heavy-duty trucks and related aftermarket distribution of parts, and finance and leasing services provided to customers and dealers. The Company’s finance and leasing activities are principally related to Company products and associated equipment. Other manufactured products include industrial winches.

Trucks

The Company and its subsidiaries design and manufacture heavy-duty diesel trucks, which are marketed under the Kenworth, Peterbilt and DAF nameplates. These trucks, which are built in four plants in the United States, three in Europe and one each in Australia, Canada and Mexico, are used world-wide for over-the-road and off-highway hauling of freight, petroleum, wood products, construction and other materials. These trucks are assembled at facilities in Ste. Therese, Canada and in Mexicali, Mexico, which are operated by the Company’s wholly owned subsidiaries located in those countries. Commercial trucks and related replacement parts comprise the largest segment of the Company’s business, accounting for 90% of total net sales and revenues during the year ended December 31, 2008.

Other Business

The Truck and Other businesses include a division of the Company, which manufactures industrial winches in two United States plants and markets them under the Braden, Carco, and Gearmatic nameplates. Sales of industrial winches were approximately 1% of net sales and revenues during 2008.

Financial Services

In North America, Australia and 16 European countries, the Company provides financing and leasing arrangements, principally for its manufactured trucks, through wholly owned finance companies operating under the PACCAR Financial trade name. They provide inventory financing for independent dealers selling PACCAR products, and retail and lease financing for new and used trucks and other transportation equipment sold principally by its independent dealers. Receivables are secured by the products financed or leased.

The Company also conducts service leasing operations through wholly owned subsidiaries in North America and Germany under the PacLease trade name. Selected dealers in North America are franchised to provide service leasing. The Company provides its franchisees equipment financing and administrative support. The Company also operates service lease outlets on its own behalf.