BELLEVUE, Wash.– In an effort to become even more vertically integrated, the parent company of Peterbilt and Kenworth Trucks is planning to construct a $400 million powertrain manufacturing facility and Technology Center in the Southeast U.S.

A more precise location was not disclosed, but Bellevue, Wash.-based Paccar — which also makes DAF trucks — says there’s enough demand for all three products to warrant a new, 400,000 sq ft-engine facility.

The new Kenworth T660, which begins production next
month, may find a new home at Paccar’s new plant

“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,” said Mark Pigott, chairman and CEO.

“The industry-leading reliability and resale value of Paccar’s light-, medium- and heavy-duty commercial vehicles, including the success of Paccar’s powertrain, as well as exciting initiatives such as (the company’s) diesel-electric hybrids, remote vehicle diagnostics and software development have driven stellar financial performance.”

Construction of the facility will begin in mid-2007 and is targeted for completion in 2009.

“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,” stated Jim Cardillo, executive vice-president. “Offering a Paccar powertrain to our North American customers will provide additional choices in their vehicle specifications.

Paccar President Tom Plimpton, promises the complex will be the truckmaker’s most technologically advanced facility. “The manufacturing facility will be configured for maximum flexibility to supply products and components to Paccar facilities and customers on a global basis.” Plimpton noted, “DAF, Kenworth and Peterbilt products have the best resale value in the industry and deliver the lowest operating cost for our customers.”