Preston Feight: Well, I think that right now, if I get with you, Chad, it’s – what we’re seeing is truckload sector, people want to keep buying trucks. They’re concerned about getting aged inventory. They want to stay on buying cycle. I think that there is capacity out there, obviously. It’s a very normal cycle is what it feels like right now, a healthy normal cycle. And their question is, when does this thing turn and when do they need to make sure that they’re continuing to get their orders placed. So the conversations are their interest in the future and what’s that going to look like? Is it three months from now, six months from now, a year from now, that they need to make sure they have acquired the capital and the trucks that they need.
Chad Dillard: Got it. That’s helpful. And then just – I’d like to get a little bit of color on your product strategy as you’re approaching the prebuy. I know you guys did a pretty good job in Europe when there’s a regulation change and introduced some new products that are real time with that. Just any color on how you’re thinking about like the next couple of years on that?
Preston Feight: On our product strategy, let’s share it. First of all, again, a shout out to the team, what they’ve accomplished. There are a couple of things I’d like to mention on that. One is from a product strategy standpoint, we just introduced the new model 589 at Peterbilt in January, which is a fantastic new truck, an iconic truck. It’s doing really well in the market. So it’s just part of our continued rollout of new products. The new medium-duty products in North America are doing exceptionally well. We see the market share continuing to grow. End of last year, we’re at 14.5%, gone to 17% and medium duty with really strong margin performance. And then if I think more broadly about strategies of product introductions, we’re continuing to develop new trucks, new engines, new alternative energy capability so that we have a very capable powertrain portfolio to handle the emissions changes that are coming forward and the uncertainty, frankly that the industry will experience with regulations.
So it feels like PACCAR is very well positioned to handle anything that comes forward at us.
Harrie Schippers: And if I may add there, Preston, that the 2027 emissions that we will see nationwide, what CARB [ph] is doing this year is already very similar in 2024. And we will launch a PACCAR engine in California that meets their requirements this year. So we’ll get – we’ll know exactly which technology to apply there.
Chad Dillard: Thank you.
Preston Feight: You bet. Have a good day.
Operator: Thank you. Our next question comes from David Raso from Evercore ISI. David, your lines are open. Please go ahead.
David Raso: Hi. Thank you for the time. I’m curious about Europe. The deliveries for the first half of the year, it looks like you’re planning to be down around 31% and the market guide, your midpoint is down 18%. You didn’t change the guide for the industry. Just wanted to get your thoughts on, is that level of delivery clearing out inventory? Or just trying to understand your considerations of lowering the European industry guide when you’re going through these numbers. Just trying to get a sense of how you view that market the rest of the year?
Preston Feight: Yes, I think I’ll start and Harrie can add whatever you’d like to. I would say that the European truck market has seen softening, and that’s especially true in Central and Eastern Europe, which are strong markets for DAF. So we’ve seen those delivery numbers adjust appropriately around that. And we have the build dialed into the delivery schedule. So we think that the new DAF truck continues to deliver for PACCAR great margin performance, which is a pretty important thing for us with this new product, it’s delivering great fuel economy for our customers. And so I think that you’re just seeing the cadence of the market down and we would expect to see that probably continue throughout the year. May be you’d add, Harrie?
Harrie Schippers: We’re also coming off a record quarter in last year. First quarter of 2023 was record quarter for DAF in Europe, and so a lot of that what Preston’s talking about the fuel economy benefits and the great performance of the new truck. So the comps are getting a little bit more difficult, too, there.
David Raso: Yes. I mean the comp does ease in the fourth quarter, too. I’m just trying to get a sense of should we expect deliveries to be that far below your industry outlook for most of the year in Europe. Again, I know the fourth quarter gets easier. And then…
Preston Feight: I wouldn’t read into it that way, David.
David Raso: [Indiscernible] Canada. Okay. Okay. And then, U.S., Canada…
Preston Feight: And yes, I wouldn’t try to read into it for the full year that way. Then I think the U.S., Canada, the delivery schedule seems really solid and stable for us right now. We’ve again, the thing I would want to remind is a 270,000 truck market at the midpoint, it’s a very nice market. And with PACCAR share increasing, that feels positive to us.
David Raso: Yes. I think we’re just trying to figure out if like U.S., Canada first half of the year, deliveries are up eight, but we’re looking for Class 8 as an industry to be down nine, medium is some offset, but we’re just trying to get a sense of like the second half of the year, how much does the U.S.-Canada build schedule come down? That’s sort of what we’re trying to…
