Parts suppliers must be global players to compete, OEM boss says

PACCAR Inc. President Tom Plimpton

The Trucker Staff

3/28/2008

LOUISVILLE, Ky. — Truck parts makers and suppliers were advised to look beyond the horizon, both geographically and in time, in a keynote address at the Mid-American Trucking Show here Friday.

Speaking at the 18th annual Heavy Duty Manufacturers Association Breakfast and Briefing, PACCAR Inc. President Tom Plimpton modestly proposed a name change for the organization — a follow-up to one he made in the same forum three years ago. To the previous suggestion of  “High Quality  Manufacturers Association,” Plimpton added a middle initial of G, as in Global — a source of focus, he explained, that has been critical in PACCAR’s history of profitability, including a record-setting 2006 and the second best year for the company in 2007.

Sixty percent of current PACCAR revenue comes from outside the U.S., Plimpton said, adding that PACCAR suppliers must, therefore, have a global capacity as well. And not simply to get his company’s business, but to be in position to seize opportunities whenever and wherever they present themselves.

He cited the example of the TATA Nano, a highly publicized $2,500 passenger car developed for the burgeoning Indian market — built with parts from leading international suppliers.

PACCAR truck brands include Kenworth, Peterbilt and DAF.

Plimpton was introduced by Bendix Commercial Vehicle Systems President Joe McAleese, 2008 association chairman.

More than 700 people attended the event, reported Mark Iasiello, HDMA vice president, member development. The association, in its twenty-fifth year, is made up of companies participating in the classes 4-8 medium and heavy truck OE and aftermarket parts manufacturing industry. Members represent every segment of the heavy duty market —from components, service and repair equipment and tires to chemicals, lighting and accessories.

For additional coverage of this story, as well as other MATS news, events and photos, please read the April 15 edition of The Trucker.