PCAR
#Sure, we actually added a table in our press release at the very end of the schedules.
That's okay.
I can't comment on what the competitors have done and our press release has been updated and not any significant developments during the quarter.
So that's about all I can say about that.
We have a great team that delivers great results as evidenced by the press release, and so I sleep pretty well most nights I got to tell you.
There's always challenges, always opportunities, and so we look forward to seizing those and taking advantage of those as we move forward.
So that'll always continue to be our approach.
Thank you.
So the effects of the euro on revenue for the quarter was about $250 million.
So you add that back to the equation, and part of it is a little bit larger mix of the light-duty trucks, the model LF compared to the CFXF mix during the first half of last year.
No, just customer demand.
All the trucks are great and the LF is particularly popular in the UK and very well received by customers and that market has grown a little faster than the rest of Europe, reflecting their economic growth.
And so we're seeing some benefits from that phenomenon.
I think as <UNK> said, we've gotten the benefits of operating leverage and that should continue.
Obviously freight rates are dependent a lot on diesel prices and so that will go up or down as diesel prices move.
But again, our team has done a good job of transitioning to PACCAR branded components and with our newest designs, we have a higher element of proprietary content.
So I think we're in good shape and positioned well and shouldn't see significant movements from where we're at currently.
So we continue to be a pretty small player in that market.
Our team is doing great.
The factory is running very well, the quality of the product is excellent and very well received by the customers.
Our dealers continue to invest in their facilities to fully represent the DAF brand in the market.
The market this year will be down substantially probably in the 45,000 to 55,000 truck range.
South America total probably 70,000 to 80,000 trucks for the year.
But we have a great team and a great long-term perspective on building our business and it will be a bigger and bigger contributor to PACCAR's results over time.
No we opened and expand distribution centers on an ongoing basis and it's just part of continuing to support that growing Parts business.
And our dealers needs to have same-day delivery to meet their needs.
So I don't ---+ there won't be any margin impact as a result of that transition.
I think we'll continue to see that grow.
The more and more customers that a lot of times they'll start with some level if they're a larger fleet.
And as they get experience, most will often increase their percentage penetration in their fleet with the MX engine.
So we expect that to continue to grow 50% to 60% over time.
It certainly has ---+ the engine has the capability to meet about 80% of our customers needs.
So we're very excited about the potential for that as we progress over the next three, five years.
I think over time.
We install PACCAR engines, branded engines, purchased from Cummins for our medium duty product.
It's always a possibility but nothing on the short-term horizon for us in that area.
Typically hasn't been our approach.
We have a great engine to support our product and we can ---+ got the capacity to support future growth.
But selling to other OEMs is not an avenue that we've thought about pursuing.
Yes, it's possible but really not part of our thought process at this time.
I would like to thank everyone for their excellent questions and thank you, Operator.
