dealers and customers. Its statistical methodology is  critical in the development of new product designs,  customer services and manufacturing processes. Six  Sigma has delivered over $1.8 billion in cumulative  savings in all facets of the company. Nearly 13,000  employees have been trained in Six Sigma and 16,900  projects have been implemented since its inception. Six  Sigma, in conjunction with Supplier Quality, has been  vital to improving logistics performance and component  quality from company suppliers. PACCAR’s strong long-term financial performance has  enabled the company to distribute over $3.6 billion in  dividends during the last 10 years. PACCAR’s average  annual total shareholder return over the last decade was  14.6%, versus 2.9% for the Standard & Poor’s 500 Index. INVESTING FOR THE FUTURE  — PACCAR’s excellent  long-term profits, strong balance sheet, and intense focus  on quality, technology and productivity have allowed the company to invest $4.6 billion since 2001 in capital  projects, new products and processes. Productivity and  efficiency improvement of 5-7% annually and capacity  improvements of over 40% in the last five years have  enhanced the capability of the company’s manufacturing  and parts facilities. PACCAR is recognized as one of the  leading applied technology companies in the industry,  and innovation continues to be a cornerstone of its  success. PACCAR has integrated new technology to  profitably support its business, as well as its dealers,  customers and suppliers.  In 2011, capital investments were $535 million and  research and development expenses were $288 million,  as PACCAR invested in global expansion initiatives to  enhance manufacturing efficiency and accelerate new  PACCAR product development. PACCAR’s Mississippi  engine factory has produced over 18,000 PACCAR MX  engines for Kenworth and Peterbilt trucks. Customers  benefit from the engine’s excellent fuel economy and  reliability. PACCAR has increased its investment in the BRIC  countries (Brasil, Russia, India, China). The company  has begun construction of the new DAF factory in Ponta  Grossa, Brasil, which is planned to commence truck  production in 2013. PACCAR Parts opened a new  distribution center and DAF expanded its sales office in  Moscow. The company launched the PACCAR Technical  Center in Pune, India, with KPIT, a leading technology  solutions company. The Center will focus on engineering,  information technology and component sourcing. In  China, the world’s largest truck market, PACCAR  increased its purchasing team and continues to examine  joint venture opportunities. SIX SIGMA  — Six Sigma is integrated into all business  activities at PACCAR and has been adopted at 245 of  the company’s suppliers and many of the company’s  A tremendous team effort by the company’s  purchasing, materials, engineering and production  employees contributed to improved product quality and manufacturing efficiency during the year. The  teams performed admirably and exceeded customer  PACCAR’s Class 8 retail sales in the U.S. and Canada  achieved a record market share of 28.1% in 2011. DAF  achieved a record 15.5% share in the 15+ tonne truck  market in Europe. Industry Class 6 and 7 truck retail  sales in the U.S. and Canada were 61,000 units, a 49%  increase from the previous year. In the EU, the 6- to  15-tonne market was 57,000 units, up 12% over 2010. PACCAR’s North American and European market shares  in the medium duty truck segment were good, as the  company delivered 21,200 medium duty trucks and  tractors in 2011. TRUCKS  — U.S. and Canadian Class 8 industry retail  sales in 2011 were 197,000 units, and the Mexican market  totaled 19,000. The European Union (EU) industry 15+  tonne sales were 244,000 units. INFORMATION TECHNOLOGY  — PACCAR’s  Information Technology Division (ITD) and its 680  innovative employees are an important competitive asset for the company. PACCAR’s use of information  technology is centered on developing and integrating  software and hardware that enhance the quality and  efficiency of all products and operations throughout the  company. In 2011, PACCAR earned the number one  technology position in  InformationWeek  magazine’s Top 500 Companies list. Nearly 26,000 dealers, customers,  suppliers and employees have experienced the company’s  Technology Centers highlighting surface computing,  tablet PCs, an electronic leasing and finance office, and  an electronic service analyst. 