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Paccar Inc. announced it will suspend truck and engine production at its factories worldwide from March 24 until April 6.
It is the second-leading U.S. truck maker based on monthly retail sales data. Paccar cited as reasons for the shutdown recent changes in customer demand and a weaker outlook for the global economy, as a consequence of the coronavirus pandemic.
It was the first such announcement from a truck maker affecting the U.S. heavy-duty market.
“Paccar’s excellent balance sheet, experienced leadership team and outstanding employees will contribute to the company successfully managing through this difficult period,” CEO Preston Feight said.
The Bellevue, Wash.-based company is in a strong financial position, with excellent liquidity and investment-grade credit ratings of A+/A1. Manufacturing cash and marketable securities were $4.28 billion at the end of February. The company also has access to existing lines of credit of $3 billion.
North American brands include Peterbilt Motors Co., Kenworth Truck Co. and the MX engine. In Europe, it makes DAF trucks.
Meanwhile, Paccar will continue to support the aftermarket and its customers “who deliver essential infrastructure services to our communities,” according to the company statement.
Paccar expects financial results for the first quarter and the rest of 2020 will be impacted by lower production schedules due to changes in customer demand and the effect of government regulations or mandates.
Paccar will provide an update on its 2020 outlook and first-quarter results during the earnings call scheduled for April 21.
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