Coming back to the U.S., as we said, a 15 million unit industry, we think prices are going to come and the industry are going to fall, transaction prices will fall about 5%. You think about that as about a combination of incentives and lower dealer margins. We’re starting to see dealer margins come down now as our demand from the industry is easing a bit. And we’re starting to see the inflationary costs come through with the pricing. And so we’re starting to see those margins come off. And I think through as we go through the year, particularly in the second half, you’ll start to see prices come down through higher incentives by the OEMs. When you look at our International Markets Group, I think it’s a little bit different there. Our key product is Ranger, and that’s all new, and that’s launching, and so there’s incredible demand for it.
And so we think we have some pricing power there as well. So I think the puts and takes around the region, if you look at it on a macro basis. And I think it will be more insightful as we talk about what’s happening in each of the segments and then specifically what’s happening in Pro Blue and e in those segments around the world.
John Lawler: On the software side, we were guessing before, but now we kind of know what the first three shippable large TAM software revenue sources are for our industry. The first is partial autonomy, the second is safety and security and the third is productivity. And the star people in there, the early leaders definitely ADAS on pricing revenue growth. I mean, the growth we’re seeing, the demand we’re seeing for BlueCruise and all ADAS features is really driving a lot of software shipment. We’re about to ship our second cycle of BlueCruise already, and we are really starting to see — that is clearly what customers want revenue-wise. And I do believe in this first three, four years of software to the car that ADAS, that Level 2, Level 3 system, is really the most remarkable TAM.
However, in the background, for Ford, the productivity software in Pro is really important. It’s maybe unique to us, but it is a very important part of our software revenue, which we will lay out in May. You’ll see more specifics on it, but it’s very profitable. The customers love the data, and they have a higher demand for the data and the software than the retail customer. I think the slow burn, the one in the background that I’m super excited about is the third leg of the stool of safety and security, not like someone stole your car, but it’s video content, a lot of it tied to insurance. So this is going to be a really interesting area. Kind of think of your cars and extension of your ring and all the safety and security you have in your house now, all that technology, the cars give me another note on that.
It will go for everything from teenage drivers to all sorts of things and that video capture is going to be the essence. Another reason why we think our next electrical architecture is so strategically important for the Company because we want to embed that hardware and software and adaptability in the electric architecture so we can ship the software, better software than our competition on safety and security, even if it’s a little fuzzy on what the features are today.
Operator: This concludes the Ford Motor Company fourth quarter 2022 earnings conference call. Thank you for your participation. You may now disconnect.
