PACCAR

INNOVATION, SUSTAINABILITY, AND PEOPLE-CENTRIC DEVELOPMENT IN THE TRANSPORT INDUSTRY

PACCAR

T

ransport in the US is evolving.

From the first Proto-Siberian inhabitants of the continent; hunter-gatherers who moved on foot via the once-existent Alaskan land bridge across the Bering Strait, to their North American descendants; the famously mounted indigenous 2 | North America Outlook issue 02

tribes, and the colonial period that followed; a tale of wagons, explorers and gold trails, transporting supplies over the continent has been essential to the survival and continuation of humankind since the beginning.

Cut to the present, where evolving innovation has ushered onto us a

century of technological solutions and continual advancements, we find that transport is at the fore of a new frontier: the growing switch from traditional and wasteful fossil fuels to progressive e-vehicles is setting a new standard for the sector. Vehicles guided by AI systems and automated

SUPPLY CHAIN

A NEW FRONTIER PACCAR represents the latest in trucking transport in the US. We spoke to Debra Poppas, Vice President of Global Quality, about the company’s progressive mission to place innovation, sustainability, and peoplecentric values at the forefront of business Writer: Marcus Kääpä | Project Manager: Tom Cullum North America Outlook issue 02 | 3

PACCAR

Automotive Industry Action Group AIAG was founded by the industry nearly 40 years ago as a non-profit association where manufacturers and their suppliers could collaborate in a legally neutral environment to develop standards and best practices that create a more efficient and sustainable supply chain for all.

Over the years, manufacturers like PACCAR, along with other global OEMs and their suppliers, have provided their best minds at AIAG to develop the tools needed to ensure predictable manufacturing outcomes.

In the whole of the US, 74 percent of freight is transported by trucks control are now considered the norm in the realm of vehicle R&D. The widespread combination of technology, sustainability, community and high-performance is marking the future of the industry across the board.

This notion of industry progression is no better exemplified than by PACCAR – the company changing the face of American trucking transport.

Trucking is the lifeblood of the American economy. In the whole of the US, 74 percent of freight is transported by trucks, with rail and water-based transport making up another 11 and five percent (respectively).

The extensive network of roads crisscrossing the nation provide vehicular access to any one location, and with individual roads such as the mighty US Route 20 spanning a substantial 3,365 miles coast-tocoast, long-haul trucking becomes the most efficient and rewarding mode of resource transportation.

PACCAR embodies this.

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Increasingly efficient trucking capabilities and solutions provided by the firm stand it above and apart from its peers in the transport industry.

PACCAR is a global technology leader in the design, manufacture, and customer support of premium medium and heavy-duty trucks under the well-known nameplates Kenworth, Peterbilt and DAF. The company also designs and manufactures advanced powertrains, provides financial services, information technology and distributes truck parts related to its principal business.

The international company utilizes a host of distribution centers and dealership networks spanning multiple regions, including South America, Australasia, Europe and the Middle East, and of course, North America.

“This is a fabulous time to be working in the Commercial Vehicle space, particularly in the US,” says Debra Poppas, Vice President of Global Quality.

“December Class 8 orders were the fourth best ever and fourth-quarter

Advanced Product Quality Planning (APQP), Production Part Approval Process (PPAP), and Failure Mode and Effects Analysis (FMEA) were developed at AIAG by member companies to address common pain points in the supply chain. Newer efforts include developing common tools, templates, publications, and training for USMCA, CTPAT, Conflict Minerals and Responsible Materials, and IATF 16949:2016, to name only a few of more than 300 solutions developed by the industry at AIAG. Now, AIAG has more than 4,000 member companies who work together every day to make the industry better for all. Along with the opportunity to develop the next generation of industry best practices, AIAG membership offers training (Live Virtual and in-person, at our site or yours), hardcopy publications and eDocuments, events, webinars, assessments, and more, ensuring your company has the knowledge to operate like the best in class, regardless of your company’s size.

Visit aiag.org to learn more about membership, and get the tools and training you need.

www.aiag.org/supplysafe

JOIN PACCAR AT AIAG PACCAR AND AIAG As a corporate member of AIAG for 30 years and a member of our Board of Directors for the last 6, PACCAR has been instrumental in the development and implementation of the standards and best practices that make high quality, repeatable manufacturing possible.

JOIN PACCAR AT AIAG AND GET ACCESS TO INDUSTRY DEVELOPED STANDARDS & BEST PRACTICES, INCLUDING: • APQP - Advanced Product Quality Planning & Control Plan documents, training and certification • PPAP - Production Part Approval Process documents, training and certification • IATF 16949:2016 - documents, training and auditor certification • Responsible Materials Reporting templates and training • Cybersecurity threat assessment • And much, much more

ABOUT AIAG AIAG is a global organization with over 4,000 members, made up of 6 commercial/heavy truck OEMS, 9 automotive OEMs, 10 EV OEMs, and over 3,500 direct part suppliers – including 144 Women Owned Enterprises.

Visit aiag.org/supplysafe to learn more or go.aiag.org/join to apply for membership

PACCAR cumulative orders were at number two all-time high.”

Poppas attributes this to the wide-reaching industry implications resulting from the COVID-19 pandemic - a catalyst for goodsrelated freight demand. In the face of this, PACCAR rose to answer the increase in freight demand enabling customers and clients access to the latest and best in quality, highperformance trucking vehicles.

Poppas has always had a passion for engineering-related hobbies and topics.

“Growing up, I was a bit of a math and science nerd,” she muses. “My keen interest in each subject led me to pursue a degree in engineering.

It’s how I learned to design electrical circuits and manufacture them through semiconductor fabrication and design sites in the heart of central Indiana.

“But one of the reasons I was able to become the first female in my family

to go to college, the first female to run engineering at Delphi Electronics, and the first female officer at Remy International, is because I had family, mentors, and sponsors who believed in me, and encouraged me to take the tough assignments – people who gave me a chance.”

Poppas began her career at General Motors (GM) as an 18-yearold college intern. She progressed through a multitude of positions, including those of Integrated Circuit Designer, Plant Manager, Vice President of Global Engineering, as well as working for two additional companies before her current position as Vice President of Global Quality for PACCAR. “My first job was quality inspector of a radio assembly line,” she tells us.

“I was checking the functionality and appearance of the radios. I had a scale and a clipboard, and I was examining over 100 jobs per hour during an eight-hour shift.

AT A GLANCE: PACCAR PACCAR is comprised of five primary businesses: Commercial Vehicles, Powertrain, Aftermarket Support, Financial Services, and Information Technology. Each business makes a valuable contribution to PACCAR’s achievements.

Quality, technology and innovation are the cornerstones that support PACCAR’s success, delivering outstanding products and services to its customers worldwide.

PACCAR’s excellent performance enables the company to invest in new vehicles, factory productivity enhancements and engine technology throughout the business cycle.

The PACCAR brand is also becoming more prominent as represented by PACCAR Parts, PACCAR Financial, PACCAR Leasing and PACCAR Engines.

It takes all 27,000 employees to deliver the industry’s best products and services to its customers. PACCAR products and technologies are recognized as industry leading year after year.

So, what does it take to consistently design and build premium quality products? It is an approach to quality that touches everything PACCAR does, and the company has been doing it for 116 years.

ConMet ConMet: A Premier Partner for Wheel Ends, Structural Castings and Plastics ConMet provides premium high quality components, engineering solutions and services to PACCAR. ConMet is a known leader in the heavyduty vehicle industry. For over 50 years, they have worked closely with Original Equipment Manufacturers (OEMs) like PACCAR to develop and manufacture best-in-class products for trucks and tractor-trailers.

To deliver the highest level of quality and technology for clients like PACCAR, ConMet is closely involved in their design process. ConMet provides onsite engineering support for all three of their product lines. This collaboration accelerates time to market and improves customer satisfaction.

Partnering for success ConMet’s unwavering commitment to quality has led to a 30+ year partnership with PACCAR. The ConMet PreSet® hub assemblies have been standard on all Peterbilt and Kenworth vehicles since 2003, and PreSet Plus® hub assemblies since 2013. PACCAR also trusts ConMet to supply their vehicles with lightweight structural castings and interior and exterior plastics components.

In recognition of their partnership, PACCAR’s Supplier Performance Management (SPM) Program has been awarded to ConMet every year since 2015.

Paccar has also presented ConMet with the “10ppm Quality Award”, which is given to suppliers who meet demanding criteria for delivery performance, warranty support, and show continuous improvement.

Looking ahead ConMet’s experience has made them a long-standing leader in the design, engineering, testing and manufacturing of critical parts for heavy-duty vehicles.

As they look to the future, ConMet is positioned to support market trends in areas of electromobility, autonomous mobility, and digital transformation, by continuing to develop unique and innovative products and services.

www.conmet.com

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Keep your trucks on the road and your business moving forward. When you work with ConMet, you get over 50 years of industry-leading experience and the most innovative commercial vehicle technology available.

DESIGN | ENGINEERING | MANUFACTURING ConMet, TruTurn, TruTurn Lite, PreSet, and PreSet Plus are trademarks of Consolidated Metco Inc. © Consolidated Metco Inc. 2019, All Rights Reserved.

conmet.com

PACCAR

BUSINESS HIGHLIGHTS, AWARDS AND ACCOLADES – 2020 • PACCAR earned its 82nd consecutive year of net income.

• PACCAR delivered 133,300 vehicles worldwide.

• Kenworth and Peterbilt increased US and Canada Class 8 retail sales market shares to 30.1 percent.

• Kenworth and Peterbilt increased US and Canada medium-duty retail sales market share to a record 22.6 percent.

• DAF increased Europe above 16-ton registrations market share to 16.3 percent.

• DAF Brazil achieved record above 16-ton retail sales market share of 5.7 percent.

• The DAF XF truck earned the Fleet Truck of the Year 2020 award in the United Kingdom.

• The DAF CF and XF model ranges won the prestigious international Good Design Awards for outstanding design and innovation.

Inteva Products Inteva is a customer-driven global supplier of engineered components and systems for the automotive industry. We provide top-tier competitive products and services, with quality measured at single-digit rejected parts per million, delivered on-time with competitive pricing.

Our product lines include Closure Systems, Interior Systems, and Motors & Electronics, and we have more than 100 customers, including virtually all the world’s leading global and regional automakers. Our innovative materials technology, processes, and application of our core product knowledge create enhanced value for our customers. We are smart competitors with a drive to excel and grow in a global competitive marketplace.

Inteva’s interiors portfolio is focused on providing valued interior systems that include manufactured components and fully integrated systems that fit the needs of our customer’s vast array of vehicle segments - everything from entry level and luxury vehicles, to SUVs and commercial trucks. Our portfolio includes instrument panels, door trim modules, consoles, headliners and more. Assembled and sequenced interior products include cockpits, headliners, and vehicle subassemblies. In addition, we also provide molded truck, under-hood and exterior components.

“That experience taught me that all details matter to ensure the quality of the product you are assembling.

I participated in a General Motors co-op program that helped pay my college tuition, and within two years after I graduated, I was off to Purdue University (Indiana) to pursue a Master’s in Electrical Engineering, sponsored by GM.” Now Poppas oversees PACCAR’s quality management worldwide and 10 | North America Outlook issue 02

has had the pleasure of witnessing first-hand the company’s evolution to the present.

INNOVATION AND ENVIRONMENT In all aspects of its operations, PACCAR ensures the promotion of sustainable alternatives to the traditional fossil-fuel-based trucks that make up the majority of those in use, as well as innovative technologies in the field.

Our experienced designers provide visionary perspectives on how the interior of a vehicle can offer a luxurious environment and user experience. Our deep knowledge of the entire body system allows Inteva to bring those concepts to life through skilled engineering and advanced manufacturing technologies, and our unique InLite™ service to smart lightweighting brings cost-efficient weight savings to interiors.

intevaproducts.com

Driving tomorrow’s inspiration from today’s applications.

Inteva’s deep knowledge of automotive subsystems and broad engineering expertise make us an agile innovation partner for commercial vehicle manufacturers. Combined with our global operations and technical centers we bring your biggest ideas to life.

Inteva is a Tier One supplier without Tier One bureaucracy. With our deep knowledge of automotive subsystems and our broad engineering expertise, we are an agile partner that delivers innovation, exceptional quality, safety, mass reduction, and environmental sustainability. With manufacturing operations and technical centers for our four product lines in 50 sites over five continents, we bring the OEMs’ biggest ideas to life around the globe. ™

+1.248.655.8886 intevaproducts.com

PACCAR

Peterbilt 220 EV4

PACCAR’s movement towards electric vehicles is embodied by a fuel cell electric Kenworth T680 and battery electric Peterbilt 579EV, that recently became the first Class 8 zero-emissions vehicles to drive to the 14,115-foot summit of Pikes Peak in Colorado.

“The trucks handily negotiated the famous Pikes Peak International Hill Climb course. Both vehicles displayed superb power and exhibited excellent drivability over the 156 turns and switchbacks during the 4,700-foot elevation gain to the summit,” Poppas elaborates.

The Kenworth T680 fuel cell electric vehicle offers 470 horsepower and a 350-mile range with a 15-minute refill time. Kenworth and Toyota Motor North America are collaborating on a project to develop Kenworth T680 zero emissions trucks powered by hydrogen fuel cell electric powertrains.

“The Peterbilt 579EV that climbed Pikes Peak is designed for optimal 12 | North America Outlook issue 02

weight distribution and performance.

The fully integrated, electric powertrain uses thermally-controlled Lithium Iron Phosphate battery packs and can be quickly recharged, making the 579EV ideal for regional haul, port, pickup/delivery and last mile operations.”

PACCAR’S nameplates Kenworth, Peterbilt and DAF are leading the industry with more than 60 hybrid and zero emissions vehicles in customer testing, which have traveled almost 500,000 miles collectively.

Kenworth K270E and T680E, Peterbilt 579EV, 220EV, and 520EV and DAF CF Electric zero emissions trucks became available for customers to order in the third quarter of 2020.

PACCAR’s electric vehicle production will proceed in the second quarter of 2021.

“In addition, PACCAR is providing charging infrastructure solutions for customers who purchase battery electric Kenworth and Peterbilt trucks in the US and Canada,” Poppas tells us.

“Kenworth and Peterbilt customers and dealerships are able to order electric chargers from PACCAR Parts.

PACCAR Financial offers flexible financing options and PacLease bundles the cost of charging systems with full-service lease.”

The latest innovations within the electrical vehicle sphere go handin-hand with advanced automated driving technologies.

In January 2021, PACCAR and Aurora (a leader in autonomous driving technologies) formed a global strategic partnership to develop autonomous Peterbilt 579 and Kenworth T680 trucks. PACCAR’s autonomous vehicle platform will be integrated with the Aurora self-driving technologies. PACCAR customers will benefit from the autonomous vehicles’ enhanced safety and operational efficiency.

Kenworth T680 and Peterbilt 579 trucks utilizing the Aurora Driver are expected to be delivered in the next several years.

The reliability of Lincoln Industries’ solutions has been proven for over 65 years of service to some of the world’s most recognizable brands. Lincoln Industries is the largest and most diverse, privately-held metal finishing company in North America. With over 900,000 square feet of facilities in 10 locations across the Midwest, United States, and Mexico, Lincoln Industries ships 400,000 parts a day while providing quality, efficiency, service, and expertise. Lincoln Industries’ core capabilities include metal platings, performance coatings, polishing, insulation, tube fabrication, design engineering, automation, supply chain management, and value-added services like assembly, packaging, and logistics.

Call today to see how Lincoln Industries can serve your business needs.

MAKING GREAT BRANDS BETTER 600 West E Street, Lincoln, Nebraska 68522 www.lincolnindustries.com | 402-475-3671 | info@lincolnindustries.com

PACCAR

BUSINESS HIGHLIGHTS, AWARDS AND ACCOLADES – 2020 • PACCAR achieved five awards from the National Association of Manufacturers: Kenworth Chillicothe earned two Operational Excellence Leadership awards; Peterbilt achieved a Talent Management Leadership award and an Operational Excellence Leadership award and PACCAR Ste-Therese was recognized in Manufacturing Leadership.

• PACCAR Inc, Peterbilt, Kenworth, PACCAR Parts and Dynacraft were each recognized as top workplaces for women by Women in Trucking, an organization that promotes the employment and success of women in the trucking industry.

• PACCAR earned an “A-” rating from CDP for its environmental practices, placing the company in the top 15 percent of over 9,500 reporting companies worldwide.

• DAF Leyland received the prestigious Queen’s Award for Enterprise in International Trade 2020 for increasing exports by almost 50 percent over the last three years.

being that transporting freight autonomously is one of the favored forms of transport with which to incorporate self-driving technologies, due in part to the straightforward and worthwhile mission of delivery tasks - driving from start to finish along lengthy yet navigable routes for AI systems.

This agreement is a global one, and Aurora’s focus will be on testing software, sensors and computing systems on the Peterbilt Model 579 and Kenworth T680. The testing will also include evaluation of the performance of the vehicles, both on-highway and at PACCAR’s R&D center in Mount Vernon, Wash.

The partnership between PACCAR and Aurora, a Silicon Valley-based autonomous-driving company with relatively new beginnings, will allow for the development and commercialization of the technology required for the safe autonomous hauling of large freight on US highways. Part of Aurora’s reasoning 14 | North America Outlook issue 02

WORKING TOWARDS NATURE AND COMMUNITY Resulting from this support for sustainability-centered business, PACCAR has been honored as a global leader in environmental practices by reporting firm CDP, earning a score of “A-” in 2020, which places PACCAR in the top 15 percent of reporting companies worldwide.

Drive Automotive Industries of America Drive Automotive, a manufacturing division of Magna, is a World Class medium and large stamping and assembly facility located in Piedmont, SC. Magna is dedicated to delivering automotive and large truck mobility solutions. The Magna Employee Charter, Operational Principles and our Code of Conduct and Ethics are the building blocks for a work environment that encourages innovation, involvement, and teamwork. Management and its employees work together as partners to achieve World Class manufacturing and deliver the highest quality products with the latest innovative technology to our customers.

Drive Automotive is leading the industry in safety focus, employee onboarding, training, and quality to deliver unmatched results to our customers globally.

Products • Bodysides and door opening panels • Doors, hoods and fenders • Liftgates and tailgates • Structural stampings • Large welded assemblies • Roofs and sunroofs • Floor pan stamping and assemblies • High-, medium- and low-strength structural stampings Technology • Blanking and stamping of Class A steel and aluminum body parts • Remote laser welding • Tactile laser welding • Laser brazing • Resistance spot welding and projection welding • Automated clinching and riveting • Automated sealer application

magna.com

DRIVE AUTOMOTIVE INDUSTRIES OF AMERICA 120 Moon Acres Rd Piedmont, SC 29673

PACCAR

Meritor WE’RE ELECTRIFYING THE INDUSTRY. AND THE WORLD. In 2021, production begins on the 100% electric 14Xe ePowertrain. It’s the first product in a line of many that hold the key to an industry revolution. Clean, powerful, efficient, flexible, and scalable.

And although the technology and innovations are brand new, you somehow knew that it could only come from the company that has been the leader in commercial drivetrains for over 100 years.

Visit www.meritor.com/14Xe

DAF LF Electric, CF Electric and CF Hybrid Trucks.

PACCAR’s R&D efforts include several demonstration and development projects for Kenworth, Peterbilt and DAF vehicles, including battery electric, hydrogen fuel cell, and hybrid technologies.

Over 9,500 companies disclose data about their environmental programs to CDP for independent assessment, and environmental leadership is one of PACCAR’s core values – an aspect that the firm is very proud of.

“PACCAR reduced greenhouse gas emissions by 38 percent across its global facilities from 2013 to 2019,” Poppas informs us.

PACCAR announced that it will establish new emissions reduction targets in partnership with the Science Based Targets initiative (SBTi). SBTi works with more than 1,000 companies worldwide to create a clearly defined path to reduce greenhouse gas emissions, with the goal to help limit global warming to below two-degrees Celsius compared to pre-industrial levels.

“We are an environmental leader in global factory operations, with over 80 percent of our manufacturing facilities being zero-waste-to-landfill, and over 90 percent being ISO 14001 certified. Even our vehicles are over 80 percent recyclable, with steel, aluminum and copper components.”

On top of this, PACCAR and the 16 | North America Outlook issue 02

About Meritor Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets.

With more than a 110-year legacy of providing innovative products that offer superior performance, efficiency and reliability, the company serves commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world.

PACCAR Foundation has made more than $200 million in grants around the world for education, social services, and the arts to enrich the communities in which its employees live and work.

The PACCAR Foundation is a private foundation formed in 1951. The Foundation usually directs its grants to organizations in those communities within the service area of a significant PACCAR presence, such as a factory or a major office.

“The company has recently contributed $1.5 million to nonprofit organizations that promote diverse and inclusive communities, including UNCF, Special Olympics USA Games, YWCA, Landesa, Northwest African American Museum and Lighthouse for the Blind,” Poppas tells us.

Meritor is based in Troy, Michigan, United States, and is made up of more than 8,600 diverse employees who apply their knowledge and skills in manufacturing facilities, engineering centers, joint ventures, distribution centers and global offices in 19 countries. Meritor common stock is traded on the New York Stock Exchange under the ticker symbol MTOR.

For important information, visit the company’s website at www.meritor.com

www.meritor.com

THE ELECTRIC REVOLUTION IS HERE Peterbilt, Kenworth and Meritor join forces to deliver best-in-class electric vehicles, available now. The industry will never be the same. Learn more at meritor.com/epowertrain.

©2021 Meritor, Inc.

PACCAR

PACCAR donated Kenworth trucks to support the Swedish Hospital Mobile Mammography Clinic that provides care to Washington State’s underserved areas.

PACCAR Mexico employees participated in the Environmental Fair sponsored by the Baja California State Government to promote environmental awareness in elementary school students.

PACCAR supports Landesa, an organization that works with governments in emerging markets such as India and China to improve the property rights of poor farmers. When farmers own the land they work, productivity increases, reducing hunger and poverty.

PACCAR Hall, home of the University of Washington Foster School of Business, supports the School’s emphasis on leadership, strategic thinking and teamwork and earned a Silver LEED Certification for its design.

Grant recipients usually include United Way, universities, hospitals, and programs for art-related and economic education. The balance of the Foundation’s grants is normally reserved for capital campaigns involving acquisition or improvement of facilities used for social and health services, education and cultural affairs.

A foundational belief guiding PACCAR’s philanthropy is that with a strong education, people have a life full of opportunities. PACCAR is proud of its generous grants to universities, which use the funding to provide scholarships, fund research in science and business disciplines, and build world class facilities for students and faculty.

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To prepare school-age children for the skills to succeed in the 21st century workforce, PACCAR and its many committed employee volunteers support literacy programs to purchase books for children in need and contribute funds and time to education programs in economics, science and business through Junior Achievement and similar programs that supplement school curricula.

Ensuring that communities have quality health care technology and services is a major priority for PACCAR philanthropy. PACCAR funds community hospitals and provides dental services for those in need.

PACCAR made a significant donation to Cancer Research UK to build a world class cancer research facility

that will support the communities near PACCAR’s Leyland factory in Lancashire, UK. Strong communities assist those less fortunate with a range of social services. PACCAR and its employees are proud to be longstanding supporters of United Way organizations across the United States. Over the past five years, PACCAR has donated $6.2 million and PACCAR employees have contributed many volunteer hours to United Way organizations.

As the organization extends its global reach, it has expanded its philanthropic leadership to support emerging economies. PACCAR’s donation to Sightlife, an eye bank, brought the latest surgical equipment to India to improve the success rate of corneal transplants for blind people across India, and to provide funding for hundreds of eye surgeries in the nation’s city of Pune.

“During the course of 2020, PACCAR and its employees donated over $2 million to assist communities impacted by the COVID-19 pandemic,” Poppas informs us.

The company’s diversity councils operate throughout PACCAR’s global businesses. The diversity councils’ goals are to enhance business success through diverse and inclusive workplaces. The PACCAR Women’s Association seeks to increase women in PACCAR leadership roles by providing educational, networking and mentoring opportunities to employees at all levels.

“PACCAR, Kenworth, Peterbilt, PACCAR Parts and Dynacraft were each honored by the Women in Trucking Association as a 2020 Top Company for Women to Work for in Transportation,” Poppas explains.

“We are committed to hiring and promoting the most talented people in the world and we know that the best people represent the diversity present in the global community.”

At NIC Global, we are: • Committed and aligned to our customers’ success • A Dependable Link in the supply chain • A Manufacturer of sheet metal parts through full assemblies • Trusted to innovate and deliver Learn more at www.nicglobalms.com

PACCAR

AT A GLANCE: PACCAR PARTNERSHIP QUALITIES The firm looks for the most reliable business partnerships to provide the best possible supply chain operation, therefore maximizing its potential when providing customers and clients with quality trucking parts and vehicles.

• Global capabilities and global support;

PEOPLE-CENTRIC BUSINESS One factor that truly makes PACCAR the company it is are the hardworking and skilled employees across all the company’s departments. Its employee-centric operation helps each individual feel like their own boss at the same time as sharing a communal sense of company achievement.

“As the commercial vehicle quality leader, we have world-class employees,” Poppas informs us.

“We have a well- established Six Sigma training program that includes lean belt, green belt, black belt and design for Six Sigma open to employees, suppliers and customers.

We have trained more than 15,000 people globally.”

PACCAR is a member of the Automotive Industry Action Group (AIAG) which provides cost- effective training and collaboration opportunities with other OEM’s for best practices and knowledge sharing. In addition, we actively network and benchmark with leaders in other industries through Manufactures Alliance for Productivity and Innovation (MAPI’s) quality council, Conference Board Quality Council and Gartner Quality/Supply Chain.

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“We developed individualized training plans for our global supplier quality mangers to improve skillsets and effectiveness in working with our suppliers,” Poppas tells us.

“This includes the American Society for Quality (ASQ) certification for quality engineers for 100 percent of our supplier quality managers.”

On top of this, another side to the company’s success are the many business partners that make up the smooth and efficient operation of the supply chain.

“PACCAR works closely with our supplier partners to ensure that our products are the highest quality and most efficient to manufacture,” Poppas elaborates.

• Investment in technology and quality systems; • Less than 10 ppm (parts per million) defects or errors; • A commitment to Six Sigma; • Investment in capacity to support Paccar’s global growth; • Reducing product complexity without compromising performance and quality; • Increasing design collaboration; • Jointly providing low-cost solutions for customers; • On-time delivery.

Rago & Son, Inc. was founded in 1945

by Joseph Rago as a metal stamping and machining company. We have been family owned and operated since then, and have grown into a high volume metal production facility. Throughout the generations, our singular mission has been to deliver great quality with friendly customer service and support at the lowest possible costs.

We are now under third generation ownership, and we continue to provide excellent service to our customers. Work with us once, and you will become a customer well into the next generation of Rago & Son.

OUR SERVICES Production Metal Stamping High-Volume Metal Stamping Complete Welding Capabilities Metal Tube Production Filter Tube Capabilities Perforated Tubing Custom Metal Stamping Pre-Production Services Post-Production Services

TEL: 510-536-5700 | www.rago-son.com

PACCAR

RGBSI About RGBSI Founded in 1997, RGBSI began with the strength of engineering and technical expertise. Today, RGBSI operates all around the world, working with organizations across industry sectors and international markets.

“PACCAR relies on excellent suppliers to build industry-leading quality Kenworth, Peterbilt and DAF trucks. To achieve elite 10 ppm status, PACCAR’s outstanding suppliers need best-in-class product design and process capabilities, and just as important, a quality-focused culture.

Our focus on excellent supplier performance ensures PACCAR products are the highest quality in the Commercial Vehicle industry.”

The company annually recognizes suppliers who exceed PACCAR’s “10 ppm” quality standard, or the equivalent of 10 defective parts for every million components shipped to PACCAR. Over 51 percent of company suppliers exceeded that target in 2020. To qualify, suppliers must also meet demanding criteria for delivery performance, warranty support and continuous improvement. In 2020 alone, PACCAR recognizes 369 suppliers in 27 countries on five continents for achieving this high level of quality performance.

This recognition of its top performing suppliers occurs through its comprehensive Supplier Performance Management (SPM) program. This honor is given to 22 | North America Outlook issue 02

suppliers that reach the SPM Master, Leader and Achiever status. The SPM program drives collaboration and continuous improvement between PACCAR and its suppliers, which leads to performance enhancements and product innovations.

“The SPM program evaluates a supplier’s performance in the areas of product development, operations support and business alignment with PACCAR objectives,” Poppas explains.

“Suppliers and PACCAR Quality work together to increase delivery performance, warranty support, and continuous improvement. Suppliers should bring us product innovations; have global capabilities and have local market support. Vehicle integration with our systems at the lowest total cost and strong aftermarket support is paramount. We expect our suppliers to be profitable, so they are able to invest in their business and product innovations, with succession plans that support their long-term viability and our business over time.”

At RGBSI, we deliver business solutions that close the gap between strategy and execution for global organizations of all sizes. Our portfolio of solutions spans across the verticals of workforce management, engineering, quality lifecycle management (QLM), and information technology (IT). Through strategic partnerships, we help clients enhance performance, adopt innovation, and access global resources. We enable organizations to meet their corporate objectives by leveraging our robust capabilities.

We are ISO 9001:2015 and AS9100:2016 Rev D certified, as well as a Minority Business Enterprise. www.rgbsi.com About Empower QLM Empower QLM, a division of RGBSI, is our proprietary cloud-based QMS for total quality lifecycle management.

The technology allows users to align supply chain management strategies with manufacturing quality through full automation. From product conception through manufacturing, Empower QLM provides complete transparency by connecting all relevant parts of the supply chain. www.empowerqlm.com

A HISTORY OF ACHIEVEMENT PACCAR conducts its business to achieve above-average market returns for stockholders, reflect

www.rgbsi.com

PACCAR

Stoneridge Stoneridge Innovation Stems From Decades of OEM Experience Stoneridge, Inc. is a designer and manufacturer of highly engineered electrical and electronic systems, components, and modules, primarily for the automotive, commercial vehicle, and off-highway vehicle markets.

PACCAR history

STANDING OUT FROM THE CROWD PACCAR’s operating policies begin with an established quality policy that has always guided the company’s actions.

This will be accomplished by: • Identifying and then exceeding customer expectations with innovative products and services that contribute to the customer’s success.

• Developing and maintaining a shared commitment by all PACCAR employees to continuously improve performance and achieve defect-free processes, products and services.

• Developing highly skilled employees with industryleading abilities.

• Coordinating all disciplines to focus on being the highest quality, lowest cost company in our respective industries.

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the highest ethical standards, fulfill its legal obligations, and meet its social responsibilities. The company strives to gain the favorable regard of customers, shareholders, employees, regulatory authorities, and the general public through superior performance and effective communications.

PACCAR’s ESG approach is focused on environmental leadership, social responsibility, ethical business conduct, and corporate governance practices that enhance shareholder value.

The ESG disclosures in this report (found at paccar.com) are consistent with the SASB Industrial Machinery and Goods Sustainability Accounting Standard Version 2018-10.

To understand PACCAR’s current standpoint, ethos, production quality and success, we can look no further than its history throughout the 20th century.

In 1905, William Pigott, Sr. founded Seattle Car Mfg. Co. to produce railway and logging equipment at its plant in West Seattle. The company later merged with Twohy Brothers of Portland to become Pacific Car and Foundry Company, a name it retained for the next 55 years. In 1924, William Pigott sold control of the company to American Car and Foundry Company.

Paul Pigott, son of the founder,

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PACCAR

William Pigott, Sr. founded Seattle Car Mfg. Co. in 1905 acquired a major interest in the company from American Car in 1934.

Under his leadership, the business expanded its products and services.

With its first major acquisition of Kenworth Motor Truck Company of Seattle in 1945, the company entered the heavy-duty truck market. Pacific Car and Foundry greatly expanded its heavy-duty truck capability with the purchase of Peterbilt Motors Company in 1958. And in 1966, Pacific Car and Foundry Company entered the Australian truck market with the establishment of a Kenworth Truck assembly plant near Melbourne.

Then, in the following decade, believing “Pacific Car and Foundry Company” no longer accurately reflected the Company’s products and activities, directors and shareholders voted to adopt PACCAR Inc as its new name in 1972.

This paved the way for two major divisions of PACCAR to be founded in the following year: PACCAR International Inc, with headquarters in Bellevue, Washington, was formed to consolidate the sales and service of company products abroad, and PACCAR Parts Division was established in Renton to supply 26 | North America Outlook issue 02

aftermarket parts sales.

With the acquisition of DAF Trucks N.V. in 1996, and Leyland Trucks in 1998, PACCAR was established as one of the major truck manufacturers in the world. DAF Trucks is a Netherlands based truck company with production facilities in Eindhoven, the Netherlands and Westerlo, Belgium. Leyland manufactures DAF trucks at its plant in Lancashire, England.

Moving into the 2000s, 2010 saw PACCAR unveil its PACCAR MX engine line for North America.

While the MX engine was new to the North American market, DAF

has been building engines in Europe since 1957. PACCAR invested $400 million in the PACCAR Engine factory and technology center in Columbus, Mississippi, to assemble its proprietary engines.

Within recent years PACCAR has grown substantially and laid roots in many different areas around the globe. On top of this, the firm has turned its focus to not only expansion, but also innovation across the board; an aspect of the company that remains increasingly important during this digital age.

2013 was the year PACCAR expanded its global operations with the opening of a new DAF factory in Ponta Grossa, Brasil. The company invested $320 million in the 300,000 square-feet assembly facility on 569 acres. The factory currently assembles the DAF XF and CF vehicles for the South American market. Following on from this in 2017 the company announced the opening of its Silicon Valley Innovation Center in Sunnyvale, California. The center coordinates next-generation product development and identifies emerging technologies that will benefit future vehicle performance.

And with 2020 came the introduction of a new age of innovation for the company. Kenworth T680 fuel cell electric vehicle and a battery electric Peterbilt Model 579EV became the first Class 8 zero emissions vehicles to drive to the 14,115-foot summit of Pikes Peak in Colorado. This year, PACCAR and Aurora established a strategic agreement to develop, test and commercialize autonomous Peterbilt and Kenworth trucks. This collaboration will integrate PACCAR’s autonomous vehicle platform with Aurora Driver technology.

From this past, PACCAR has risen to become a key player in the trucking transport industry and continues to supply its quality variants of trucks and positive ethos in the present and into the future.

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PACCAR

PREMIUM PRODUCTS A PACCAR product and service will enhance the company’s reputation of providing unsurpassed customer satisfaction through superior quality and premium value.

PACCAR’s enterprise quality system consists of five main components: • Design quality ensures that it designs for reliability, manufacturability, assembly and serviceability.

• Product validation confirms that its new commercial vehicles and powertrains will meet the demands of its customers’ applications.

• Built in quality is the commitment its plants make to build consistently flawless trucks and engines everyday by leveraging technology and error prevention.

• Supplier quality maintains alignment with PACCAR’s design requirements and quality expectations.

• Six Sigma is its continuous improvement methodology. It is used as the company’s standard problem-solving tool, improving efficiency, productivity and streamlining business processes PACCAR-wide.

INTO THE FUTURE Now PACCAR stands at the beginning of a new frontier. A company that places innovation, sustainability and people-centric values first, PACCAR spearheads the trucking transport industry with a progressive attitude towards incorporating the latest technology and maintaining the best practices with regards to operational efficiency and limited environmental impact.

“Quality is the defining character of PACCAR products and is the bedrock of our success,” Poppas says, and 28 | North America Outlook issue 02

ends by elaborating on the company’s future plans.

“As such, PACCAR is maturing its supplier software quality assurance process using a process capability assessment ASPICE. We are also maturing our Quality Management System for robust controls for electrification and autonomous technologies in a high-volume production environment that match commercial vehicle requirements for safety, functional performance, compliance, durability, and quality.

“Advancing problem-solving

capability throughout the supply chain, expanding data analytics to anticipate and predict customer needs and equipping the organization with insights to make better informed decisions are the transformative quality initiatives underway. The challenge is to proactively and flexibly help the business respond to disruptive technology, rapidly shifting economic conditions and expanding supply bases.”

With a longstanding history dating back to 1905, PACCAR now represents the forward-moving development of the trucking transport industry across the US and several regions around the globe. Its innovative reach into the realm of electric vehicles has opened a whole new branch of possibilities for the company itself and its customers, and PACCAR’s continuing investments have given the company an everadvancing foothold into the latest high-end self-driving technologies.

As it stands, and with the future, a highway laid bare for the company, it is more than fitting to say that it is worth keeping an eye on the progressive convoy that is PACCAR.

Tel: 425.468.7400 Fax: 425.468.8216 www.paccar.com

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PACCAR Corporate Headquarters PACCAR Inc. 777 106th Avenue N.E. Bellevue, WA 98004 Tel: 425.468.7400 Fax: 425.468.8216 www.paccar.com PRODUCED BY NORTH AMERICA OUTLOOK MAGAZINE