Global financial downturn impacts on Paccar's bottom line, with company saying orders have fallen since last financial year
Paccar Australia admits it is not immune to the global economic downturn, with the company saying orders are way down on the previous financial year.
A spokesperson for the multi-national says it leaves Paccar with little choice but to meet “manufacturing capacity with orders”.
This follows the retrenchment of 45 manufacturing and administration staff just days before Christmas due to low orders.
An executive from the multi-national says orders are “far lower than in the past few years as buyers choose to sit out the current period of economic uncertainty”.
He says Heavy duty trucks are a significant capital investment and caution is currently the primary driver in the marketplace.
“The short term outlook is not strong, however the mid-term outlook is for continued growth within the road transport industry towards 2020.
“Once confidence returns to the market, sales will rebound rapidly as the freight task continues to grow,” he says.
He also quashed rumours the Australian arm of Paccar may retreat to the US as a result of the current financial environment.
“Paccar has no plans to move manufacturing offshore. Kenworth Australia is extremely well placed through our significant investment in local design and manufacturing capabilities, to deliver world class solutions across a broad range of customers and applications for Australasian truck buyers,” he says.