Paccar has agreed to sell its retail automotive parts and accessories business.
The business, which includes Al's Auto Supply and Grand Auto Supply, will be sold to CSK Auto for $143.2 million in cash. The revenue will be used to accelerate the introduction of new truck designs, expand Paccar's financial services companies, and fund investment in new technology.
Paccar bought the auto parts businesses more than 10 years ago. But with the heavy-duty truck industry thriving, the company is focusing more on its core business. It produces Kenworth, Peterbilt, DAF and Foden trucks.
"Paccar has achieved tremendous growth in the '90s and now produces over 105,000 trucks annually," says Mark Pigott, Paccar chairman and chief executive officer. In July, Paccar reported record first-half sales and earnings of $4.2 billion and $259 million, respectively. The second quarter of 1999 was the 10th quarter in a row in which Paccar's profits exceeded the comparable quarter a year earlier.
Paccar plans to increase its share of the medium-duty (Class 5-7) market in North America. The recent opening of a new 400,000-square-foot factory in Montreal will help the company meet the demand for these products, Pigott says.
Paccar is making investments in technology in three main areas: electronic communication in vehicles, material sciences applicable to truck cab designs, and e-commerce, particularly in the financial services area.
For more information, visit http://www.paccar.com.