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PACCAR implements new U.K. parts distribution

BELLEVUE, Wash. -- PACCAR successfully concluded an early termination agreement with RAC regarding the distribution...


BELLEVUE, Wash. — PACCAR successfully concluded an early termination agreement with RAC regarding the distribution of Leyland aftermarket parts to DAF dealers and customers in the U.K.

In the future, parts will be stored and distributed from PACCAR’s new GBP 11 million ($20 million) parts distribution center at Leyland. Per the terms of the termination agreement, PACCAR will pay RAC GBP 18 million ($33 million).

This cost will be charged against PACCAR’s fourth quarter pretax income.

“Beginning in the fourth quarter of 2005, PACCAR will establish a single distribution parts channel for DAF U.K. dealers,” explained Bill Jackson, vice president. “This transition represents a positive development for DAF dealers and customers in the U.K. For PACCAR, it will generate additional parts sales and margins and lower the cost of parts distribution. In addition, PACCAR Parts is implementing electronic parts scheduling and an all-make parts program for DAF
dealers.”

For more details, visit www.paccar.com


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