Demand has been strong in Europe for some time now. This is no secret. And os if DAF had five per cent in its back pocket, why wait until now to spend it? What remains to be seen is just how long demand will remain buoyant. We reckon not much longer, and, already - witness Spain, Germany and EU newcomer Romania - there are signs of a cooling off in the plus 16 tonne market.

So why boost supply now? We stand by our view that Q4 2008 will see carnage within the EU truck market; it's had a good run, and it seems getting ready to stop. Good economic news is a rare commodity at the moment, and we'd be more than a little bit surprised if truck sales can buck this trend.

So is this announcement more about appeasing worried US investors, PCAR shareholders who might be beginning to get cold feet about the sustainability of a business model that demands that Europe props up Paccar's ailing US revenues? A rather cynical view we grant you, but Paccar follows both Wabco and ArvinMeritor in talking up a market that seems destined to take a tumble.