Joseph Spak: And then just getting back to some of the growth of our market commentary. I just want to — it seemed like there were a couple of statements at odds, because you mentioned, obviously, there was — in China, there was meaningful underperformance in the first quarter, but you still expect meaningful outperformance for the year. I think, last quarter when you showed it was almost 11%. But then in your prepared comments, you sort of talked about how some of the production uplift was from players that you don’t have a lot of content with. So what really sort of drives that acceleration in the outgrowth over the balance of the year?
Mark Oswald: I think it’s the launches, right, and the pacing and cadence of those launches. So for example, in our first quarter, that’s the fourth quarter of the calendar year, certain of those customers that we mentioned, whether it’s the BYD, SAICs, obviously, they’re performing very strong to hit their year-end targets, right. We know that we are going through certain launches in our Q1. We also understand where we’re going to be on those launch curves, as we go through Q2, Q3. So again, that’s all predicated or based on our guidance. We expect that to improve and progress as we go through 2024, ultimately outperforming by the 500, 600 basis points that I’d indicated.
Operator: Thank you. [Operator Instructions] Our next question comes from Dan Levy with Barclays. You may ask your question. Your line is open.
Dan Levy: Hi, great. Good morning. Thank you for taking the questions. I wanted to, just go to the slide in which you talked about some of your new wins. Specifically, I don’t think you’ve talked in the past about BYD. This is I think the first time we’ve seen a BYD one for you. I know you generally don’t talk much about specific customers, but given the amount that BYD is responsible for some of the positive revisions in China, maybe you could just talk about this particular win and what you might be expecting with BYD going forward?
Jerome Dorlack: Yes. I mean just a couple of words on that win for us. It’s one where — I think it shows the ability of our team to really demonstrate value for a customer on our components segment. And without going into a lot of details in particular on BYD and their total supply chain, I think it is known they have a portion of seeding they do in-house and a portion of seeding that they outsource. And for us to really go in with our team, very deep expertise on the component side and demonstrate to their in-house seeding company that they have, how we can provide value on the components piece of it through that foam and trim, was a very important, what I would call, conquest for us and to show we don’t have to be just a JIT type of supplier and we’re willing to play on the component side.
We’re willing to demonstrate our expertise and really drive a significant amount of value for the customer there. And so, for us, it’s really kind of a way to dip our toe in the water there and add a tremendous amount of value. This is our real first foray directly into BYD. We did have in a prior call one of BYD’s joint ventures, a win on the complete seat side that included JIT, foam, trim and metals that we had announced in our Q3 of FY ’23 earnings call, through another joint venture they had. That wasn’t directly with BYD, it was through a joint venture. I think it is also important to point out that, through our KEIPER joint venture, where we’re a 50/50 holder in that BYD is a very significant customer to them through the mechanism side that we don’t always break out the customer breakdown obviously of that joint venture.
But we do get a significant amount of, call it, JV income kind of indirectly through BYD, through the KEIPER side of the house as well. So there has been growth there. We’ve been enjoying that growth through KEIPER and then through the equity income side as well.
Dan Levy: Great. Thank you. As a follow-up, I want to ask about mix and specifically in North America. I think we know obviously, from a mix perspective, you benefit tremendously from three row SUVs, larger vehicles. I think one of the questions out there right now is with prices, where they are and potential for negative mix shift in the industry. What would be the impact to you? And to what extent, if there is maybe some slightly negative mix in the industry, could you still hold your path to 8%? How critical is mix in the path to getting to 8% margin?
Mark Oswald: Yes. Dan, it’s de minimis. It’s a very small piece, as we’ve indicated before. It’s all about volumes and the stability of those volumes mix. Mix again is not going to be, what I would say, the enabler for us to achieve that 8%.
Jerome Dorlack: Yes, I think nothing more to add. I agree with Mark. It certainly isn’t mix between high end to low end vehicles and nothing along those lines, I think.
Operator: At this time, I’m showing no further questions. I’ll turn the call back over to the speakers.
Eric Deighton: Thanks, everyone, for joining the call. I appreciate it. We’ll be available for follow-ups as necessary throughout the day or afterwards. Reach out to me or Mark. We’ll be happy to take any other questions. So we have the day, thank you very much.
Operator: Thank you. This does conclude today’s conference. We thank you for your participation. At this time, you may disconnect your lines.
