Operator: I’m going to move on to our next question. Our next question comes from David Whiston with Morningstar. Your line is open.
David Whiston: Thanks. Good morning. I guess you called out in the press release some advanced feature growth beyond FDM. I was just curious what features lately have been getting better take rates to drive that revenue outperformance?
Steve Downing: Yes, if you look at, I mean, really the features that we have internally that we’ve been talking about for a while that have really shown some strength as a combination of a FDM, obviously, DVR projects, ITM is back to producing good revenue, HomeLink actually has held up really well. Beyond that, kind of what we’re referencing are some of the newer technologies that we’ve shown at CES that we believe over the next several years are going to help drive growth, a lot of interest in driver monitoring and cabin monitoring and a lot of the other kind of advanced features that we’ve shown at the CES show obviously are still starting to garner a lot of interest. But if you look at what’s cool about those product launches, is they are using a combination with existing mirror platforms, and we’re able to usually pretty quickly add feature content into a vehicle by going through our current geography being the mirror locations.
David Whiston: Okay. And what international regions are driving exterior growth?
Steve Downing: So if you look at — if you look at, where we’ve been growing a lot on outside mirrors, if you, we’ve had a lot of success, obviously, in Western Europe and Japan and Korea. Obviously, the other one, although not as quite as big from a total volume standpoint, if you look at the penetration of our outside auto dimming into the China market has also been growing very quickly.
David Whiston: And you mentioned some large building projects this year. You guys had already completed an exterior plant. Are you building another one?
Steve Downing: We’re building a new plant on our North Riley campus, and that one will be, that one should be completed this year and ready for occupancy probably by mid-year. If you look at, if you look at the other one, we had made an announcement about a daycare center. That got delayed based on some regulatory support issues that we needed help with. So we’ll be completing — we’ll be starting work on that here soon. And then we have a brand new distribution center that we have been working on really for the last 12 to 18 months that will be going into product, getting ready for production this year as well.
David Whiston: Thank you. Remind me what’s going in North Riley?
Steve Downing: So that’ll be a combination of features. There’s going to be some R&D area inside of that building for our large area devices. There will also be expansion of inside auto-dimming as well.
Operator: Thank you. [Operator instructions]. Our next question comes from Mark Delaney with Goldman’s Sachs. Your line is open.
Mark Delaney: Good morning. Thanks for taking my questions. I’ll be speaking a little bit more on the revenue cadence for the year. You spoke about some headwinds in the first quarter, and I’m hoping to better understand if you think that was purely due to customer program launch timing, or is there perhaps a sign that LVP for the year is perhaps shipping out to be a little bit lower than you previously expected? And maybe talk a little bit more broadly on how you see LVP by region, and if you have any different opinions compared to where S&P is forecasting?
Steve Downing: Yes, I would say there was definitely a little bit of pullback by OEMs that wasn’t really expected. So the million dollar question obviously is, is that a trend that’s going to continue throughout the year, or is it more just kind of a one-time occurrence? I think this year, just like the last couple years, we’ve been a little bit more bearish on S&P’s projections, and I think that served us really well in terms of our forecast. We’ve been a little more conservative, and that’s really kind of always trended in our favor. If you look at the regions, I think, if you look at the growth throughout most of the year, China’s kind of over-performing the rest of the market. So if you look at Western Europe, North America especially, and then Japan-Korea, we see those kind of relatively flat really moving through the next 18 months, and so our forecast is really based on that type of a model.
They’re not over the top volumes by any stretch in one of those regions, so we don’t feel like it’s over-performing and therefore needs to settle back down. If you look at it, we think those are pretty good stasis points in terms of light vehicle production in each of those regions. When you look at what’s kind of driving our ability to outperform that, you start talking about feature content, and so when we look at each of those OEMs, their deployment of the technology, how each OEM, including, some of our customers talking about the fact they’re focusing on higher-end vehicles, trying to look at dollar content to help offset the fact that, total light vehicle production may never come back to where it was. That suits us really well. I mean, what we try to work really hard on is making sure products fit with the consumer, and it drives revenue and profitability for our OEM customers as well.
Mark Delaney: Thanks for all that color, Steve. My other question was trying to better understand some of the opportunities within China. I mean, you spoke about selling in the China region, but when I think about the Polestar win you announced today, when I think about some of the ambitions of the China domestic OEMs to grow their businesses in Europe and other international regions, South America and others, maybe you can talk about your opportunity to support some of those China domestic OEMs and some of their international expansion efforts? Thanks.
Steve Downing: Yes, I think it’s a very interesting model. If you take the global politics out of where cars are produced and where they’re going to be moved to over time, given the fact that we have a good footprint in the North American market, which is where a lot of focus right now in terms of expansion and who’s going to be trying to import vehicles here, if you think about production closer to the North American market in support of North America, we feel like we’re structured really well to help capitalize on those. The biggest challenges we have are obviously if something’s produced completely in China and then exported, we have, there’s obviously the geopolitical side of the tariff structure right now that puts us at a little bit of a disadvantage.
And so we’ll have to get more creative if we want to capitalize on those opportunities in the domestic China market, especially as it relates to high-end electronic content, because that’s when the duties and tariffs really start to affect our competitiveness.
