PCAR
#It will be a comparable level to this year, probably somewhere in the 80,000 unit range.
Absolutely.
If you look at PACCAR's performance over several years in the medium duty segment, we grow share in North America 0.5 point per year, and we would continue to expect that would be the case in 2017 as well.
If you look at ---+ 2015 was a record year for medium duty truck deliveries for PACCAR, and we are going to be pretty close to that 2015 level for 2016, and so we are optimistic that we've got the products and the supporting network to make that growth continue.
At 260,000 to 290,000 trucks, that is an excellent truck market.
We've probably taken a little bit of a conservative approach on the heels of 2016 being at 295,000, which is the best truck market since 2008.
So, we hope that it would continue at the current pace, but we've been a bit conservative in terms of our projection for our outlook for next year.
Yes, if you look at history, when I started with the Company, we were a 21% player and we sort of went up to a new plateau at 25%, and now we are at 28%, 29%.
Peterbilt and <UNK>worth continue to introduce additional configurations around their 2.1 meter platform.
Peterbilt just launched their model 520 for the low-cab forward market.
We just introduced enhanced axle and engine components that will enhance the performance of the vehicle.
So, we continue to increment the product lineup and we will continue to do that as we have done for 20 years, and we think that will lead to continued share growth over the long-term.
A relatively steady market share history over the last couple of years needs to be placed in the context of an oil and gas business that hasn't been generating any truck sales.
And we've typically been fairly strong in that segment.
So, we are offsetting that loss with some of the new wins that <UNK> talked about.
That's exactly right.
Yes, there's definitely a competitive advantage that comes with this proprietary axle and the integration of it with the rest of the elements of the powertrain, so lighter weight axle, better fuel economy, yes.
I think we've been active in all elements of the market for many years.
And we are conquesting new customers all the time, but our product is very competitive.
With the fleets and the excellent operating efficiency of our vehicle, the higher residual value, there's a lot of elements that make our products very attractive not only to large fleets, but small and medium-size customers as well.
So, a great product lineup, great performance continue to demand 10% to 15% difference in terms of residual value versus the competitive products.
I think we've seen that over the last five, six, seven years.
More and more of our volume is with the medium and larger fleets.
That mix gives us the opportunity to get more looks at the parts business than we would maybe with owner operator customers.
It also gives us more looks on the Financial Services business.
So, that mix shift is a positive thing for us as well.
Sure.
The margin performance over the last five, six years, as we've transitioned, it's been excellent.
Well, you know, we typically will assume a share and penetration comparable to the current levels, and we will continue to put in actions to enhance both of those as we progress throughout the year.
The engine share will be comparable to slightly positive compared to this year, probably in that 50% range.
I think if you average ---+ take the average spending for the year, I think that's pretty indicative of our level of SG&A spending.
I can't speak for our competition.
I know what our focus is, and you laid it out pretty well.
It's a focus on providing the highest quality products, low operating cost, premium value for our customers, excellent support with aftermarket parts and Financial Services.
And that continues to be our focus for the near, mid- and long-term, and we will continue to make investments to build on that.
And we will compete toe to toe with our competitors, whatever their approach may be.
As I mentioned earlier, it's a balance of vertical integration and supplier provided proprietary components.
And so I think that's the approach that we'll continue to apply as we move forward.
And you will see more, as time goes on, you will see more branded PACCAR components, because they are unique to integrate with our vehicle and our powertrain.
So, as I mentioned before, the pound moves up and down over time and pricing adjusts to reflect that.
All of the OEMs predominantly have their production on the continent.
We are very fortunate in that we are the only UK truck maker, so we have a bit of a natural hedge with respect to UK costs and prices.
So, we will adjust pricing as the market needs to adjust to earn a fair return on our trucks over time.
With the respect to used truck pricing, I think, as we progress through next year, customers are keeping their trucks perhaps a little bit longer.
At some point, though, the value intersects with the current market and they will be back in the market at some point to reinvest in the equipment.
The equipment new has such attractive operating efficiencies with lower fuel consumption, better operating efficiency, the reliability and durability of the products are outstanding, so you have to upgrade at some point to take advantage of those features that are on the newer products.
