And actually, we’re using it today even to partnership on pursuing incremental business that’s not in our book for both them and us. So, I think that continues to be fruitful. I think when we look outside of seating, are there other things that are could be attractive for us we continue to evaluate. That are, say, in the seating space, that are natural bolt-ons to seating that would lead to some level of vertical integration, but also give us exposure in markets that would be accretive. I think we continue to evaluate that. But again, it comes down to kind of capital allocation and what’s the best decision long term from a total capital allocation perspective. But certainly anything that would make us more relevant long-term and diversify our risk exposure, as you said, to customer pricing pressure is something that we’re evaluating and we continue to evaluate in a very dynamic environment.
And anything that would help us gain scale in Europe and defray some of the risk that’s there is also something that we’re evaluating.
Operator: Our last question comes from Joe Spak with UBS.
Joseph Spak: Thanks. Mark, maybe one first quick clarification. When you talk about adverse customer mix, are you talking about certain customers growing at different paces than other customers? Are you talking about within the programs you’re on, just a lower trim level that maybe less content?
Mark Oswald : Yes, it’s within the programs we’re on. So if you think about, we called out the Acadian Traverse, for example, right. Those are good programs. Unfortunately, they were adversely affected this quarter and looking into Q3 because they’re not getting up the launch curve as fast as they had anticipated.
Joseph Spak: Okay. And then just back to the path to 8%, I understand like a good chunk of this is sort of that’s going to balance out, which is maybe going to take a little bit longer, but like maybe you could just help it remind us like of the 200 basis points, like how much of it is really that balance-in balance-out, how much of it is more net performance, like under your control, right, improving the self-help improvements with your operations and how much of it is volume.
Mark Oswald : Yes, I’ll start on that, Joe. So when I think about what’s in our control, right, as we indicated, we’re not assuming a volume tailwind to get us there, right. So when I think about growing in China, for example, right, that’s us making sure that we’re winning business and we’re providing our customers with value so we can continue to grow that backlog, right. When I think about improved business performance in the Americas and EMEA, that’s within our control because again, as Jerome indicated, right sizing our metals business, right. What can we continue to do on a modularity perspective? The team continuing with automation at certain of our foam and metals plants, right. That’s within our control. Proactive restructuring in Europe, for example, right, that’s us taking a look at our footprint, trying to understand, A, can we get scale out there if we can’t get scale, right?
What do we have to do to revise that footprint? So I’d say it’s more concentrated on what we can control. Now that said, there’s macro pressures that influence that, right. So I still have to offset things like FX, for example, the Mexican peso, right. I still have to look at labor costs, right. So certain of those things will obviously impact timing. But again, as Jerome indicated, we have a roadmap to get us to that 8% and we have not walked away from that.
Jerome Dorlack: Yes, and I just follow on with what Mark was saying. I think what’s important for us as a management team is looking at it and we’re not sitting there. We’re not happy with the status quo and really identifying what levers do we have to accelerate it. And I think the European restructuring action that was announced a few weeks ago was really the first step now towards accelerating that, not sitting still and really taking a proactive action towards that. I think the modularity that we’re now accelerating in the Americas is really driving that, realizing that the labor market in the US now has fundamentally shifted. What can we do to downscale some of our JIT plants, actively move labor out, accelerating some of the automation activity that we have already started in our metals plants.
That journey started two and three years ago, working towards accelerating that activity. So these are tools that we have around us. It’s now what is — what can we do to begin to accelerate those to crystallize this path towards the 8% overall goal.
Joseph Spak: So that’s helpful, and I appreciate you guys are doing hard work. I guess what I’m trying to understand is assuming you can execute on all that, right, I mean how much of the 200 is actually just reliant on this sort of balance-in balance-out? Is it a third of it, or ballpark? What are we talking about?
Jerome Dorlack: Yes, I’d say it’s roughly a third of that between now and then is that balance in balance out profile.
Joseph Spak: Thank you very much.
Jerome Dorlack: Yes, so you’ve got just rough ballpark. You’ve got about a third of the balance-in, balance-out. You’ve got, call it a third of what I call a mixed tailwind of our China growth as it accelerates, and then a third of business performance, which I’d put in there. The restructuring actions that we’ve already announced in other business performance.
Mike Heifler: And with that, it looks like we’re at the bottom of the hour. So again, appreciate everybody’s calls, questions. If you have additional questions, feel free to reach out to Mike, myself, who are available today. Again, thanks for the time.
