) share price dropped 0.7% to $55.36 on Oct 3, due to the overall
decline in the U.S. market. However, the opening of a new
assembly plant by PACCAR in Brasil appears promising for the
company in the future.
PACCAR inaugurated its 300,000-square feet DAF assembly plant in
Brasil earlier this week. The plant, which stretches across 569
acres of land, will be used for assembling the premium quality
DAF XF, CF and LF vehicles. DAF XF-105 will be the first DAF
model produced in this plant.
PACCAR will also produce CF and LF models in the plant in future.
While the DAF CF's has a large range of usage such as regional
transportation and heavy construction, DAF LF is designed for
distribution and urban delivery.
The DAF trucks produced in the plant will be distributed to
Brasil and South America. PACCAR expects that demand for trucks
with a capacity of more than six tonnes in the Brasil market will
exceed beyond 140,000 units in 2013, and there is scope for
further expansion in the years ahead. Thus, the company believes
that the new DAF plant will support economic development and
enhance the quality of life in Brasil.
DAF premium quality products occupy a leading position in Europe.
These products have captured a market share of 15.8% in the above
16-tonne segment. Customers prefer DAF products owing to its
better quality, low operating costs and higher resale value.
PCAR, a Zacks Rank #4 (Sell) stock, is the third largest
manufacturer of heavy-duty trucks (with a capacity of more than
15 metric tons) in the world after
). The company also manufactures light/medium trucks (with a
capacity of 6-15 metric tons). PCAR also provides customer
support for its products with the supply of aftermarket parts,
finance and leasing services.
Tesla Motors Inc.
) with a Zacks Rank #2 (Buy) is performing well in the automotive
DAIMLER AG (DDAIF): Get Free Report
PACCAR INC (PCAR): Free Stock Analysis Report
TESLA MOTORS (TSLA): Free Stock Analysis
VOLVO AB ADR B (VOLVY): Get Free Report
To read this article on Zacks.com click here.