And when we had this review with this major customer, I mentioned that it became more of a we’re pushing to a pull. How fast can you go how fast can you go? So we’re putting out timing based on validation within modulars modular systems. But it’s how fast the customer can go to. And so we’re really focused on putting it in a perspective on how we can get this in. But once you get it into a platform it goes across multiple vehicles. That’s where you really get the synergies. That’s really — you really get the benefit. So something that can be a $5 million or $10 million saving can grow exponentially when you start talking about across all their different vehicle lines. And we’ve been receiving incredible feedback and I think the timing is perfect, I mean, the timing has been when the customers are coming in and asking for we need more help on the cost side.
We have a great really lay up in front of them say not only do you get a better customer feature it’s a savings in labor efficiencies and savings within the components themselves. So in consumer benefits, our customers benefit and we love it because we get to expand our margins.
Jason Cardew: And it’s not an insignificant benefit. We can see savings up to 20% on the relevant components in a fully featured vehicle system. And in most programs 10% to 15%. So this is a meaningful opportunity. So not only does it improve the performance and sustainability of the seat it also lowers the cost for customers.
John Murphy: Yeah. Looking forward to hearing more about it over time. Thank you so much, guys.
Ray Scott: Thank you.
Operator: Our next question comes from James Picariello from BNP Paribas. Please go ahead with your question.
James Picariello: Hey, good morning, everyone. It’s great to see the early momentum in thermal comfort. I think as of last quarter right Lear had one source and control with seven OEMs. Now that number is 9. You now have 21 development contracts you were at 16 last quarter. Can you just speak to the strength in the pipeline here to sustain this type of quarterly buildup in momentum as we think about next year? Thanks.
Jason Cardew: Yeah. I think that the traction we have is as Ray mentioned, it’s starting to become a pull from customers. And so the demand for customers wanting to learn more about the products has really been a positive surprise to us. And maybe Frank, if you want to elaborate on some of the things we’re seeing and some of the interest we’re seeing from customers in these technical reviews.
Frank Orsini: Yes absolutely. As both Ray and Jason had mentioned the reception from the customer has been really fantastic. And to Jason’s point just now, James, we’ve had a lot of technical reviews on a global basis. We have a lot of customer engagements or tracking all of that as a team to make sure we understand. We’re getting tremendous activity with not only our commercial discussions, but our technical discussions and validation development projects that we’re working on. So we’re extremely encouraged by the global reception too of this product. We’re working with Asian customers. We’re working with customers in Europe and here in North America and it’s really cross-sport. I guess, as we will continue through the quarters I believe the momentum is just going to continue to build.
Ray Scott: Yeah. So I think the swing is we’re still quoting individual components but every JIT program that we’ve been awarded we have sourcing control. And so that’s what’s been nice and that’s a major shift. And not every — well JIT suppliers that don’t have this capability don’t get that flexibility. It varies. So that’s one thing that we’re right now in the process of these development programs. We’re focused on making sure those go off and we execute those flawlessly. And the rest of it as we continue to build across multiple car lines independent, if we have the JIT is what’s picking up steam as they’re starting to see the benefits and then asking us to quote across car life or seat systems that aren’t even being quoted yet today.
James Picariello: Yeah. That’s really helpful. And just a quick one on the commodity side. How should we be thinking about the earnings impact in the fourth quarter? And I know, it’s early but just given current spot pricing and what you already have locked in on the metal side for Seating how could we start thinking about next year’s setup on the commodities front? Thanks.
Jason Cardew: Yeah. There’s been a modest softening in commodities in general. North America Europe steel prices have drifted down a bit. That benefited us a little bit in the third quarter. Fourth quarter, we had a pretty strong recovery quarter last year. And so year-over-year commodities may be a modest headwind just as a result of the level of recovery we received last year versus this year. As we look out to next year, I think we don’t see a meaningful positive or negative at this stage. We do see steel as an opportunity and then kind of on the flip side and maybe a little bit outside of your question around commodities is wage inflation is something that we’re very focused on in terms of maybe a bit of headwind and similar to what we experienced this year where we saw fairly significant increases in hourly wages in Mexico and Eastern Europe.
