When it comes to the software side of things and the integration side, we’re doing a lot of work on the software ourselves, but at the same time, we need to work with the OEMs in regards to their software integration for the entire vehicle. So we’ll work jointly together in regards to what we need to do to coordinate the software side of things. But we couldn’t be happier to offer and ultimately be able to supply in the future here, an integrated system on e-Beam Axles for Stellantis. And as I said just in John’s earlier comment or question, this is going to open up a lot of other doors to other OEMs as well. So I’m very excited about this opportunity with Stellantis, the ability to offer integrated e-Beam systems in this particular one, but also prepared to supply integrated EDUs and e-Beams in the future with other customers as well.
Operator: Our next question comes from Dan Levy with Barclays.
Dan Levy: Hi, good morning. Thanks for taking the questions. First, I wanted to ask just on the 1Q bridge and for the guidance for the full year, if you could maybe just talk to a couple of discrete items, a, your transactional exposure on the Mexican peso and then b, we’ve obviously seen an increase in steel. I know you’re more exposed to SBQ, but what’s implied for the metal market, which I think in the last on the 4Q print you said would be $15 million to $25 million. EBITDA headwind.
Christopher May : Yes, Dan, this is Chris. As it relates to the peso in the metal market, I guess, thinking about our perspective guide. So, as you know, the Mexican peso is our largest foreign currency exposure from a cost perspective. As you know, we have large operations inside of Mexico. We are subject to some level of volatility associated with the peso, but we do have a significant, I would call, three year rolling hedge program on the peso. So we are currently benefiting from some of those hedges that were placed last year, two years ago, three years ago. And obviously, I think for the most part of this year, we’ll continue to reap some of that benefit. We will have some exposure transactionally as the peso has strengthened from about 20 to let’s call it 18 to the dollar.
So we’ll have a little bit of that. But again, our hedges will protect from a lot of that exposure here this year. As it relates to metal market, we generally provide through our guidance, metal market forward looking sort of at current run rate coming off the quarter. So, as you know, they declined sort of at the tail end of 2022, declined a little bit inside of the first quarter, and have started to clip up at the end of the first quarter. We’ve seen some clip up in this activity and cost lost in April and May, early parts of May. But again, we generally do a flat run rate from the end of the quarter and embedded in our guidance. But we are protected, as you know, we pass on 80% to 90% of the exposure to our customers up and down, and it changes every 30 days.
Dan Levy: Okay, so just to be clear on that the Peso in the quarter within the $12 million EBITDA increase on metal markets and FX, it sounds like there was probably very little transactional headwind on the peso.
Christopher May : Yes. Correct. Not very much, correct.
Dan Levy: Okay, great. Thank you. And then just continuing the line of questions on your Stellantis win. I think in the past, you disclosed that half of your backlog was drive units versus the other half of your EV component of your backlog was components or sub-assemblies. So I guess I wonder, how much does this change the trajectory of what you’re playing for? Does this change the backlog with more CPV, more focus on drive units?
