PACCAR Inc
Heavy-Duty Truck Manufacturing & Commercial Vehicle SolutionsFounded 1905- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
PACCAR Inc
Company History
Founded 1905 in Bellevue, Washington
Last reviewed: 2025-07-15 · By Swet Parvadiya
PACCAR Inc generated $33.66 billion in FY2024 worldwide net sales and revenues, a 4.2% decline from the record $35.13 billion in FY2023, with net income of $4.16 billion—its 86th consecutive year of profitability. The company delivered 185,300 vehicles globally and maintained a 30.7% combined retail market share in the U.S. and Canada Class 8 truck segment through its Kenworth and Peterbilt brands. After-tax return on revenues was 12.4% and after-tax return on beginning equity was 26.2%, with stockholders' equity reaching a record $17.51 billion. The Truck segment generated $24.84 billion (73.8% of revenue) with pretax income of $2.85 billion. The Parts segment generated record revenue of $6.67 billion (19.8%) with pretax income of $1.70 billion and a 25.6% margin. The Financial Services segment generated $2.10 billion (6.2%) with a portfolio of 237,000 trucks and trailers and total assets of $22.41 billion. The company is investing $1.25 billion annually in capital projects and R&D, directed toward next-generation clean diesel engines, battery electric and hydrogen fuel cell vehicles, and autonomous driving systems. The 2025 outlook reflects industry normalization, with U.S. and Canada Class 8 sales estimated at 230,000-280,000 units and European above-16-tonne registrations at 270,000-300,000 units.
William Pigott Sr. was born in Ireland and immigrated to the United States, settling in Seattle in 1895. He was an experienced pig iron salesman and had co-owned a steel rolling company in Colorado before founding Seattle Car Manufacturing Company in February 1905 with $10,000 in capital. The company's early products were horse- and oxen-drawn logging trucks and structural steel for Seattle buildings. Pigott became the exclusive Pacific Northwest representative for Climax logging locomotives. In 1917, he merged his company with Twohy Brothers of Portland to form Pacific Car and Foundry Company. He sold control to American Car and Foundry in 1924. His son, Paul Pigott, reacquired a major interest in 1934 and transformed the company into a global truck manufacturer. William Pigott died in 1929, leaving a legacy as the founder of what would become one of the world's largest heavy-duty truck manufacturers.
Paul Pigott was the son of William Pigott Sr. and the leader who transformed Pacific Car and Foundry into PACCAR Inc. After reacquiring control in 1934, he diversified the company's product line and pursued strategic acquisitions. The 1945 Kenworth acquisition gave the company entry into heavy-duty trucks at the dawn of the post-WWII economic boom. The 1958 Peterbilt acquisition created a dual-brand strategy that covered both the Pacific Northwest (Kenworth) and California/West Coast (Peterbilt) markets. Under Paul Pigott's leadership, the company also acquired Dart Truck Company (1958) for mining vehicles and expanded internationally into Mexico (1960) and Australia (1966). In 1972, he oversaw the name change to PACCAR Inc. Paul Pigott's management philosophy emphasized quality, financial discipline, and long-term investment—principles that continue to define the company today. He remained active in the company until his death in 1987.
William Pigott Sr. founded Seattle Car Manufacturing Company in West Seattle, Washington, with $10,000 in capital, manufacturing horse- and oxen-drawn logging trucks and structural steel for the Pacific Northwest's booming timber industry.
A devastating fire destroyed the company's Duwamish facility in August 1907, the same year a bank panic cancelled numerous orders. Pigott responded by constructing a larger factory in Renton, Washington, by 1909, establishing the oldest continually operating business in that city.
Seattle Car Manufacturing Company merged with competitor Twohy Brothers of Portland, Oregon, to form Pacific Car and Foundry Company, consolidating the leading manufacturer of railcars and logging equipment in the Pacific Northwest.
Paul Pigott, son of founder William Pigott Sr., acquired a major interest in Pacific Car and Foundry from American Car and Foundry Company, ending 10 years of absentee ownership and beginning the company's transformation into a diversified manufacturing company.
Pacific Car and Foundry acquired Kenworth Motor Truck Company of Seattle for $1.0 million, entering the heavy-duty truck market at the dawn of the post-World War II economic boom. Kenworth had been founded in 1923 and was a respected manufacturer of logging and construction trucks.
Pacific Car and Foundry acquired Peterbilt Motors Company for $3.6 million, creating a dual-brand strategy that covered the Pacific Northwest (Kenworth) and California/West Coast (Peterbilt) markets. Peterbilt had been founded in 1939 by T.A. Peterman.
Pacific Car and Foundry Company changed its name to PACCAR Inc, reflecting its evolution from a regional steel fabricator into a diversified international manufacturing company with operations in trucks, parts, financial services, and industrial winches.
PACCAR acquired DAF Trucks N.V. of Eindhoven, Netherlands, for approximately $500 million, transforming the company from a North American truck maker into a global player with a European manufacturing footprint and access to the EU market. DAF had been founded in 1928 by Hub van Doorne.
PACCAR introduced the MX-11 and MX-13 diesel engines in North America, manufactured at its Columbus, Mississippi plant. The proprietary engines replaced Cummins engines in many Kenworth and Peterbilt models, capturing the engine profit margin and creating a captive parts revenue stream.
PACCAR opened a Silicon Valley Innovation Center in Sunnyvale, California, to develop autonomous driving, connectivity, and electric vehicle technology, signaling the company's commitment to next-generation transportation solutions.
R. Preston Feight, a 30-year PACCAR veteran who previously led Kenworth, was appointed CEO, succeeding Mark Pigott as Executive Chairman. Feight's mandate was to maintain PACCAR's premium positioning while investing in zero-emission technologies and global expansion.
PACCAR reported record worldwide net sales and revenues of $35.13 billion and net income of $4.60 billion, with after-tax return on revenues of 13.1% and after-tax return on beginning equity of 34.9%. The company delivered approximately 200,000+ vehicles globally.
PACCAR launched Amplify Cell Technologies, a U.S. battery manufacturing joint venture, to produce battery cells for electric trucks and reduce dependence on Asian suppliers. The company also opened a new 240,000 square-foot parts distribution center in Massbach, Germany.
PACCAR sold its industrial winch business, exiting the Carco, Braden, and Gearmatic product lines to focus on its core truck, parts, and financial services businesses. The divestiture streamlined the company's portfolio after nearly 90 years in the winch market.
Pacific Car and Foundry acquired Kenworth Motor Truck Company of Seattle for $1.0 million to enter the heavy-duty truck market at the dawn of the post-World War II economic boom. Kenworth had been founded in 1923 by Harry Kent and Edgar Worthington and was a respected manufacturer of logging and construction trucks.
Pacific Car and Foundry acquired Peterbilt Motors Company for $3.6 million to create a dual-brand strategy covering the Pacific Northwest (Kenworth) and California/West Coast (Peterbilt) markets. Peterbilt had been founded in 1939 by T.A. Peterman, a lumber entrepreneur who built custom trucks for his logging operations.
PACCAR acquired DAF Trucks N.V. of Eindhoven, Netherlands, for approximately $500 million to transform the company from a North American truck maker into a global player with a European manufacturing footprint and access to the EU market. DAF had been founded in 1928 by Hub van Doorne and was one of Europe's leading truck manufacturers.
PACCAR acquired Leyland Trucks in the UK to strengthen its European manufacturing footprint and gain access to the British truck market. Leyland had been a major British truck manufacturer but had declined in the 1980s and 1990s.
PACCAR has not made major acquisitions since 1998, focusing instead on organic growth and vertical integration. The company's growth strategy emphasizes internal development of technology (PACCAR MX engines, STLA platforms, autonomous driving) rather than acquisitions.