Commercial vehicle manufacturer, PACCAR, will close down its factories worldwide as part of an international effort to curb the spread of COVID-19.
Factory production of Kenworth, DAF, Peterbilt and MX Engines will be suspended between March 24 until April 6, 2020, in accordance with new government mandates.
The company has vowed to continue providing aftermarket support for its customers who are considered part of essential infrastructure services.
Decreased production schedules affected by the suspending manufacturing are expected to impact financial results of its global operations for the first quarter.
Manufacturing cash and marketable securities were a reported $USD4.28 billion at the end of February 2020.
With liquidity and investment-grade credit ratings of A+/A1, the company was in a strong position to ride out the shutdown of its production facilities.
It also has access to existing lines of credit valued at $UDS3.00 billion.
“PACCAR’s excellent balance sheet, experienced leadership team and outstanding employees will contribute to the company successfully managing through this difficult period,” said PACCAR CEO Preston Feight.
PACCAR Australia is understood to have put its DAF drive day program for its new generation CF and XF Euro 6 commercial vehicles temporarily on hold.
It involves, as was originally conceived, a tour of 26 locations in nine weeks.
"With the Federal and State Governments implementing further tightening of nation-wide restrictions to individual movements and business operations we had no choice but to take this action," DAF Brand Manager said in a statement overnight.
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