PACCAR Extends Shutdown of Truck and Engine Plants Worldwide
Bellevue, WA – Paccar, makers of Kenworth and Peterbilt commercial vehicles, is extending its ongoing production shutdown at all of its plants worldwide as the fallout from the COVID-19 pandemic worsens.
On Wednesday, Paccar announced it was extending its production suspension for an additional two weeks until April 20, 2020.
The company announced early last week it would be temporarily halting production at each of its plants worldwide beginning March 24 until April 6, 2020.
In a statement, the company once again reiterated the coronavirus outbreak has weakened both customer demand and the overall global economy.
While the company says it remains in a “strong financial position, with excellent liquidity” and access to existing lines of credit of $3.0 billion, it warned investors the COVID-19 pandemic will have a significant impact on financial results.
“Paccar’s excellent balance sheet, experienced leadership team and outstanding employees will contribute to the company successfully managing through this difficult period,” said CEO Preston Feight.
Despite the production shutdown, Paccar says it will continue to provide aftermarket support to its customers who deliver medical supplies, food and essential infrastructure services to our communities.
Rival Truck Makers Shut Down Too
Navistar International Corporation, makers of International Trucks, also recently announced it was suspending production at its truck assembly plant in Springfield, OH, for two weeks.
Navistar’s halt in production came only a few days after Mack Trucks and Volvo Trucks North America announced a similar suspension of production.
Daimler, makers of Freightliner and Western Star Trucks, also suspended the “majority” of its production of cars, vans and trucks at its commercial vehicle plants in the U.S., Europe, Latin America, Africa and India.
Transportation Nation Network will continue to closely monitor these shutdowns.
Photo courtesy Paccar
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