PACCAR Inc or Cummins Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive landscape of the automotive industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Cummins Inc. and PACCAR Inc. have demonstrated contrasting approaches to handling these costs. From 2014 to 2023, Cummins Inc. consistently reported higher SG&A expenses, peaking at approximately $3.2 billion in 2023. In contrast, PACCAR Inc. maintained a more conservative approach, with expenses reaching around $785 million in the same year. This disparity highlights Cummins' expansive operational strategy compared to PACCAR's more streamlined approach. Notably, PACCAR's expenses remained relatively stable, with a slight increase of about 40% over the decade, while Cummins saw a more significant rise of over 50%. As we look to 2024, PACCAR's data remains incomplete, leaving room for speculation on future trends.