If a program looks like it’s going to be significantly higher in volume, the OEM wants to have a discussion, if it’s going to be lower in volume, the supplier wants to have a discussion. Bond costs are historically part of those. So, as we get up to the point of starting production or putting capital to work to start production, we have a mechanism in place and the team does a good job at it to go back to customers on the overall economics of the program and bond costs are going to obviously now are included in that have always been but are now sort of at the top of the list, particularly with semiconductors of things that get discussed. And sorted out to get the program back to the original economic deal that was struck.
Kevin Clark : Dan, if I could add one comment? I think Joe did a great job explaining how we contract and how we operate with our customers. At the same time, right, the last couple of years, there’s been a lot of focus on, one, keeping our employees safe and then more recently, obviously, just supply chain connectivity by keeping our customers connected, and as Joe articulated, passing on price increases to customers. At the same time, we’ve been very focused on how we continue to enhance our business model. So, from a supply chain standpoint, whether it’s semiconductor chips or is resin or other inputs to what we manufacture. We’ve been very focused on how do we redesign the product and take out content, lower cost, how do we operate with our supply base more efficiently and more effectively to lower cost how do we operate with our customers from a supply chain standpoint as well to increase efficiency and take out cost.
And then at the same time, when you look at inflation in around areas like labor, we continue to rotate where we do things, how do we increase our — how do we move manufacturing, engineering, and other as well as how do we improve the productivity within the existing four walls so that we — again, on an organic basis, we’re driving down our cost of operating. So, it’s really a two-pronged approach in terms of pushing incremental inflation onto our customers, while at the same time, trying to operate more efficiently, whether or not we’re getting — we’re experiencing material inflation and other items.
Dan Levy : Thank you, that was very helpful.
Operator: We will take our next question from Mark Delaney from Goldman Sachs. Please go ahead.
Mark Delaney : Good morning. Thank you for taking my question. You mentioned that Aptiv has been a little bit more conservative on its EV volume projections given the cost of those platforms. I’m hoping you can clarify, whether has there been a change at all in Aptiv’s own outlook for EV volumes this year because some OEMs have certainly talked recently about seeing some slower EV growth, but perhaps some or all of that is being offset by upside that other OEMs may be realizing?
Kevin Clark : No. Listen, our assumptions have always been lower than what I think some of the industry forecasts have. So, I’d say from a baseline standpoint, overall view on BEV penetration, high voltage penetration has been lower and has been for an extended period of time as we evaluate business cases for specific platforms or customers, our assumptions on volume tend to be on the more conservative side. And as I mentioned, as it relates to contracting and pricing, we have some levers that we include to provide us with some risk mitigation. So, nothing has changed in terms of our overall outlook. I would say the industry is probably coming closer to where our initial perspectives were as related to bet penetration. Having said that, although we’re more conservative revenue growth in the second quarter on high-voltage solutions is close to 50%. So, — and we’re still expecting very significant growth for the balance of the year and into the out years.
Joe Massaro : Yes, Mark, it’s Joe. I mean we had talked about at Investor Day high-voltage being at least 30% grower per year for ’23, ’24, ’25, and that view has not changed at all. So, I think that’s — that was reflective of sort of where we were on our estimates relative to the broader sort of forecasting community.
Mark Delaney : That’s very helpful context. Thank you. And my other question was just around software, and Wind River and some OEMs have continued to struggle with the understandable large challenge of software integration. You mentioned momentum with Wind River and I’m curious if you could elaborate a bit more on the types of engagements Wind River is seen with auto OEMs, and perhaps there’s been a recent uptick to some of these challenges that the industry is facing that Wind River can help to address? Thanks.
Kevin Clark : Yes. I’m not sure there’s an uptick. I think the industry still wrestles with software. I think there are still major challenges. Wind River has announced a number of program wins with OEMs, I think today we’re, we’re actively engaged with, I don’t know, 10 OEM to 12 OEMs as it relates to their underlying kind of software architecture and some of the needs that Wind River can provide a lot of momentum there. As I mentioned in my prepared comments, I would expect by the end of the year to have some additional amounts to make. So, those challenges present an opportunity for Wind River. And then when you think about the middleware, real-time operating system as it relates to Aptiv, whether it be in user experience or ADAS or other areas, certainly opportunities for Aptiv as well.
Mark Delaney : Thank you.
Operator: We will be taking our final question from Tom Narayan from RBC. Please go ahead.
