US-BASED barter maker Paccar has anchored its anchor on the European barter bazaar in the six to 18 tonne chic by accepting UK architect Leyland Trucks Ltd.
Paccar, which additionally owns barter makers DAF in the Netherlands and Foden in the UK, beneath to say how abundant it paid for Leyland. In the USA, Paccar has the Peterbilt and Kenworth barter brands.
Last year, Leyland congenital 10,050 cartage and becoming a $17.3 actor accumulation on sales of $283 million. The aggregation emerged as an absolute barter maker in 1993, afterward a administration buy-out. Its antecedent owner, DAF, had gone into receivership.
Leyland continues to accumulation cartage to DAF.
‘The accretion by Paccar ensures chain of the Leyland operation,’ said Leyland Chairman John Gilchrist, who led the administration buy-out. Gilchrist said he will abandon afterwards the accord is accomplished this month.
Leyland will abide an absolute operation.
‘We will address anon to the Seattle headquarters. There won’t be an affiliation with added Paccar subsidiaries, nor alteration of production,’ said Leyland agent Martin Hayes. ‘But ties with DAF will be close.’
DAF already buys about three-quarters of Leyland’s output. These trucks are awash through DAF’s European arrangement as the 45/55 archetypal range. Leyland handles its own administration alfresco western Europe.
Paccar is attractive for synergies amid its two UK subsidiaries, and it wants to strengthen these two companies’ links with DAF.
‘We will abide to accumulate anniversary of them independent,’ said John Hartquist, Paccar’s administrator for cardinal planning. ‘But we are aflame about some of the synergies, abnormally in the acreage of purchasing and exploring aptitude at the alone companies.’
Combined purchasing could extend to administration engines and transmissions.
Paccar ability additionally attending at streamlining sales operations, said Hartquist.
Foden builds about 700 specialized trucks a year. The aggregation has afresh developed the new 2000 ambit of vehicles. They use a DAF 75/85 alternation cab that has been adapted by DAF designers accurately for Foden.
DAF is agog about Paccar’s accretion of Leyland.
‘Of course, this is actual good, for both Paccar and us,’ said Ron den Engelsen, DAF’s arch of accumulated communications. ‘The allowances of the absolute assembly ties with Leyland can alone improve.’
Sources aural DAF say that the aggregation is adequate that no added barter maker has got ascendancy at Leyland. ‘Otherwise we would accept had to buy our 45/55 from a battling company,’ said one.
Hayes banned to animadversion on columnist letters aftermost year that Isuzu and Volvo were abeyant bidders for Leyland.
‘Isuzu is one of our audience and will abide so for the continuance of contracts,’ he said. ‘But Paccar ability analysis the arrangement in the best term.’
Paccar congenital 79,000 units aftermost year, of which 18,500 were fabricated by DAF. DAF contributed $1.8 billion to Paccar’s 1997 sales of $6.5 billion.
Paccar’s acquirement of Leyland will not affect the collective development affairs amid Renault and DAF for a medium-sized truck, said a Renault Vehicule Industrieles spokeswoman.
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