DAF Truck Manufacturing Company- Startup and case study

daf truck
daf truck

From transporting fresh vegetables, foods, and other edible commodities to being one of the important means of road transportation, a truck serves various purposes. A truck as a means of transport strengthens the distribution chain and brings together the other components of the logistic industry. With the growth in the demand for road transportationtruck manufacturers have come up with several trucks catering to the needs of the people. With the increase in the trucking business, several truck companies have been set up manufacturing custom trucksheavy haulage trucks, etc. DAF manufacturing is one such company that has gained popularity as one of the world’s largest truck manufacturers. The DAF Company was founded in 1928 by Hubert Doorne.

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Founder of DAF Manufacturing

 The history of the DAF manufacturing plant dates back to 1928 when Hubert “hub” van Doorne and the managing director of a brewery, A.H Huenges, co-founded the company named Commanditaire Venootschap Hub van Dooorne’s Machinefabriek. Van Doorne and Huenges were old acquaintances as Doorne had very often repaired Huenges’ cars. Being impressed with Doorne’s performance, A.H Huenges offered Hub’s business partner and chief financer. After the end of the First World War in 1918, Van Doorne was appointed as a chauffeur- mechanic and walked for the De Valk brewery.

Soon after, he started his own business of metal equipment, bicycles, stoves but gave away that and returned four years later as a company manager of Manager. The Doorne brothers renamed the company in 1934 to Van Doorne’s Anhangwagen Fabriek (DAF), and not more than two years later, Huenges, who was the co-founder and investor, parted his way with the DAF manufacturing plant. 1937 onwards, the DAF Company was co-managed by the Doorne brothers. With the distinguishing alterations in the ownership, there were certain inevitable shortcomings in financial and management aspects. With shortcomings came downfall, but with the end of the Second World War ended the bad times, and the company geared up.

Start up Story of the DAF Manufacturing

Dating back its existence to 1928, Hubert’s company was renamed to Van Doorne’s Anhangwagen Fabriek (DAF). The venture started in a small underground workshop when A.H Huenges was impressed with the outstanding knowledge of Hubert Doorne. This was co-managed by Hubert, his brother Wim Doorne and A.H Huenges till 1936. The DAF trucks are a sub-division of the Paccar group. Its headquarters is located in Eindhoven. After significant alterations, finally, during the Second World War, DAF started beholding the greener side of the grass and grabbed the right opportunity by converting the Trado from a 4 x 2 Ford truck to a 6 x 2 off-road drivetrain.

DAF took benefit of the wartime scenario and produced the M39 Pantserwagen. It’s one of the few armored vehicles in 1940 during the Netherlands invasion. Being aware of the scarcity of means of road transport, DAF started mending trailer truck, lorry, container trucks, buses, cars, etc., in 1949. Throughout 1949 and 1950, DAF manufactured vehicles facilitating the Dutch army like DAF A-30, DAF YA-126, DAF YA-328. Later DAF came up with refined belt-driven vehicle technology in 1958. For the next decade, DAF was solely involved in car and other passenger vehicle manufacturing which had high demand, and opened a separate outlet for car production in 1967. In 1972, the International Harvester of Chicago bought a 33% stake, and with time, the bubble broke.

The DAF plant sold all its passenger car outlets to Volvo and other companies and focused on its successful trucking business. During the next decade, DAF collaborated with Leyland trucks, functioned as Leyland DAF in the United Kingdom, and floated in the London Stock Exchanges. The Paccar group successfully acquired the DAF and Leyland trucks in 1996 and 1998, respectively, and merged them once again. The DAF produced 95 series launched in 1987, was titled the “Truck of the year.” In the year 2012, the Paccar group achieved a milestone in setting up a new plant Ponta Grossa in the city of Brazil. As of now, the net worth of DAF is 1.7 billion dollars.

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Total manufacturing plant units

This global commercial vehicle company, headquartered in Eindhoven, Netherlands, has several production units situated in various countries. With the main production unit in its home country, the company also has its other important production and assembly lines in countries like Belgium, Brazil, U.K., Australia, and Taiwan. The Leyland factory in the U.K. is the main manufacturing center for various truck models of the company.

The brilliant human workforces in the company’s manufacturing units are further assisted by an innovative and uniquely designed PACCAR Production System. The company can produce its vehicles with maximum efficiency and standardization with a well-planned and synchronized manufacturing and assembly plant. With various major production processes carried out by well-operated robots and machines, the company can cut large production costs while enhancing the whole process. The company also promotes and provides space for innovation, and the whole production process is continuously monitored. It leaves no scope for mistakes.

Specialization

This truck manufacturer has produced several world-renowned truck models and has set new standards in this trucking business world by enhancing the trucker’s lifestyle. Models like LF45, CF85, XF, and XG clearly show their trucks’ reliability, durability, and high-quality performance. The trucks are manufactured and assembled in their highly efficient production units, operated by both man and machines, therefore, giving out the best results. With a very low Repair and Maintenance (R&M) cost accompanied by low running costs, the company produces the best trucks out there.

To satisfy its customers even better, the company provides complete and uninterrupted customer services anytime and anywhere. Added to all of this, all the truck models are given unique and elegant exterior looks to the body and an excellent interior experience to its drivers. The company manufactures trucks of all types, ranging from light to medium to heavy-duty trucks, therefore, serving all the demands of its customers. DAF group was the first company to have introduced the intercooler turbocharged diesel engine in its Lorries which came into the limelight with their 3600. In their Lorries, axle configurations were allowed to be suitable to every requirement in the operating time.

Much priority was given to solving the existing problems, and hence continuous upgrades like soundproofing and gear-linkage were being made, and the revised model was introduced in the 1990s. Another hybrid version introduced contemporarily is the 80 series which used the Leyland truck inherited T45 model fitted with an ATI driveline. Several such brilliant models were presented in the auctions and shows.

Truck vehicle advantages

Affordable and efficient for short distancesDAF Trucks prove to be the best option for short-distance travel and transportation than any other mode of transportation. The trucks provide high mileage with minimum maintenance required. All these exclusive features make these trucks the best affordable and efficient option for transit.

Provides door-to-door services

One of the best advantages of a DAF truck is its ability to provide better door-to-door service, thus enhancing customer experience. With better accessibility to even remote areas, trucks are ideally the best option for the courier, logistics, and other transportation services. 

Safer and faster transit option

The unique body structure of a DAF truck makes it stronger and safer than any other commercial vehicle. It can have the capability to withstand accidents up to a large extent. The new models of DAF trucks come with a computerized night lock feature to add an extra layer of security. Besides this, trucks also prove to be a comfortable, faster and cost-effective method of transport. 

Versatility and scope for customization

DAF trucks are also known for the flexibility of their services to its user. From the looks and colors of the exterior of the trucks to the interior design, their trucks can be easily customized and used according to the requirements and conditions. It beats all other vehicles in terms of versatility and scope for flexibility. 

Smart and exclusive features

To provide a seamless and flawless experience to its user, all the DAF trucks are loaded with various unique and innovative features. Features like computerized dashboards, comfortable seats, better storage, stronger body are some of the unique features of these trucks, to name a few. These smartly developed features leave a remarkable impression on users in their first driving experience in these trucks.

Uninterrupted customer services

One of the most striking and most important benefits of being a DAF truck driver is access to its seamless customer service. The company is fully devoted to assisting its customer to every extent. It provides easily accessible customer care services to all its customers anytime and anywhere.

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Important contributions in the trucking and logistic industry

The DAF trucking business brought about a revolution in the logistics industry with its variety and valuable vehicles. Since its introduction in 1928, it has increased its sales decade after decade. The DAF trucks have outplayed the other trucks with their brilliantly heavy-built body and amazing features and have been honored with several accolades across various countries. Besides all other advantages, the low operating cost per kilometer has served as one of the striking features of DAF, which has made it the widely selling and the best-rated truck in Europe. After winning the title of International Truck of the Year in 2007, the DAF XF105 went on to win the Poland truck of the year yet again and the Irish tractor and truck of the year in Ireland in the same year. By 2007, one of the 3 heavy-duty trucks being sold in the Netherlands was a DAF, one of the 4 trucks being sold in the United Kingdom was a DAF, and it was trying to increase its influence in Germany.

At the same time, the demand for DAF trucks surpassed its production, even when the production target was 50,000. With the help of the PACCAR group, DAF has strengthened its international market in Europe and explored markets in Australia, Taiwan, South Africa, New Zealand, and the Middle East. Not only does it focus on increasing its annual revenue, but also, DAF ensures a healthy and safe work environment for its workforce.

To match the standards of the Paccar group, the DAF provides training to its workers to tackle dangerous situations, to make use of the specific mechanisms in times of need to avoid break down. They also provide instructions on road safety and physical stress to avoid truck accidents, ensuring the safety of the drivers and truck safety, simultaneously enhancing the trucker’s lifestyle.  The DAF provides the truck with spacious cabins, which enables goods transport and helps in accommodating oversized loads. The DAF trucks have won million hearts with their appealing design and excellent service.

Resale Market Class (%)

DAF provides A1 quality reliable trucks with the required safety features to lessen driver fatigue. The DAF models come with advanced features and excellent truck mileage. DAF manufactures heavy-duty and medium-duty trucks of average truck size and advanced safety mechanisms along with high-quality engines.

The DAF not only comes at a reasonable price but also provides a steady resale value subject to certain terms and conditions like the condition of the vehicle, the distance covered, the maintenance facilities, etc. The resale market % of DAF is around 50%, and it has active customer service to take care of the further processes and provide any support required. DAF has developed a global design perspective for all its facilities to reach beyond the national borders. 

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Conclusion

DAF focuses on key strategic points like competitiveness, quality, cost-effectiveness, supply market intelligence, etc. DAF believes in maintaining long-term relationships with its suppliers and meeting the demands of its suppliers, simultaneously taking care of the quality and capability requirements and assuring the driver of fair returns, and promoting integration among all the pillars of their strength. DAF has been serving the transport companies for a long time and has witnessed a fourfold increase in its annual revenue and production. Hence, to conclude, DAF has enhanced its presence overseas and has ensured a successful growth trajectory via collaboration with the PACCAR group.

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