| Paccar’s Tom Plimpton Speaks Directly to 730+ Industry Executives Research Triangle Park NC  Paccar president Tom Plimpton addressed a sell-out audience of supplier and OEM executives, trade media and others at HDMA’s 18th annual Breakfast and Briefing at the Mid-America Trucking Show. Following opening remarks and introductions from HDMA president and COO Tim Kraus, HDMA 2008 chairman Joe McAleese, president and CEO of Bendix Commercial Vehicle systems gave a state of the association message and an introduction of HDMA’s board of directors. McAleese then introduced the keynote speaker; Paccar president Tom Plimpton, who addressed the audience and later took questions. His presentation highlighted Paccar’s strong financial performance, their transition from a North American to a global company and discussed future strategies for the company. Well known for its solid financial performance over the years, Paccar finished 2007 with a turnover of $15.2 bn, profits of $1.2 bn, and shareholder equity of $5bn. Plimpton reported that the globalization of Paccar is going very well; in 1996 the US accounted for nearly 80pct of Paccar sales, with Europe at 8pct and “other” at 14pct. Today the US accounts for 36pct of Paccar sales with Europe at 40pct and other countries totaling 24pct. Currently the company manufactures trucks and other products in 5 countries worldwide. The incorporation of Six Sigma initiatives have shown great results and dividends and are an integral part of the Paccar corporate culture. Currently, over 7,600 projects have been completed and 11,300 Paccar employees have been trained in Six Sigma. As a result, 2,400 employees have earned coveted “belts” for achievement of various levels in the initiative. Over 350 supplier “belts” have also been awarded. He also described the company’s commitment to quality as top-down and asserted that this includes the Paccar supplier base. Plimpton went on to say that such performance was expected by his company and their suppliers to be competitive in the global market. Plimpton stated that 50PPM (parts per million) world-class defect rates were once considered a future goal in this industry. , Paccar and many of their suppliers are expected to achieve this world-class standard. Other Paccar supplier partner expectations are global capabilities, supply capacity and investment, aftermarket support, design collaboration and integration, automotive fit and finish, and lowest total cost solutions. He also stressed that while costs are important factors, financially healthy supplier partners are needed and mentioned investment programs designed by Paccar to address supplier financial needs. He also discussed their commitment to advanced technologies and integration in all parts of the company. Paccar’s Hybrid truck program, alternative-fueled vehicles and fuel efficiency programs are defining industry-leading initiatives. Paccar’s growth has also included several new facilities around the world and will soon be joined by their new Paccar engine plant in Mississippi. Throughout the discussion Plimpton asserted the need for the suppliers and Paccar to work together on various initiatives, programs and collaboration for future success. At the end of his comments, he suggested that a future name for HDMA could be HQGMA, for Highest Quality Global Manufacturers Association.
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