And I think that the overall sentiment is while there may be some moderation in truckload, people are trying to figure out how to think about the next 3 years. And so I don’t — I’m not smart enough to know what Q2, Q3, Q4 are going to look like. And we just feel like we’ll see some adjustments there from this year, but that it should still stay at like a replacement demand level.
David Raso : That’s helpful. The order book right now, how far can the dealers order out to, say, U.S., Canada into ’24?
Preston Feight: Looking at the first half.
Operator: Our next question is from Jerry Revich from Goldman Sachs.
Jerry Revich : I wonder if you could just talk about the new product portfolio, I mean, in Europe. I think your profitability per truck has doubled with the new product, similar on the medium-duty product lineup. Is it possible, Harrie, for us to have a discussion of what proportion of the portfolio fits this new product paradigm versus the type of rollouts that we have still in front of us over the next couple of years? How far away are we through rolling out this new higher-margin portfolio that seems to be a big step higher for you folks?
Harrie Schippers : And the new DAF is currently a little over 80% of all the trucks that DAF is building. I remember DAF was also building trucks for export outside Europe. But I would say within Europe, almost all the trucks that we’re selling are the new DAF with the improved aerodynamics and the better fuel economy because that’s what customers want. And then going forward, yes, we’re planning to bring that new DAF product also to other markets. And any market where we’re currently selling DAF is an opportunity to sell the new DAF in the future.
Jerry Revich : And sorry, Harrie, can we expand that conversation in North America as well? So with the 589 rolling out, what’s the remaining opportunity within the book for upgrades that you folks have planned?
Harrie Schippers : Well, like I said, the 589 is — the 389 is 20% of Peterbilt’s production. So it’s about 6%, 7% maybe of PACCAR’s production. So with the 589 replacing the 389 next year, it will be a similar percentage, I would think as the 389 is today.
Jerry Revich : And there’s a pipeline for new products from there, it sounds like?
Preston Feight: Of course, yes, I’ll help a little bit here. Like you see what our R&D numbers are for next year. We think there’s a ton of great projects that we have out there that provide good value to our customers and shareholders. And so we — that pipeline is very full.
Jerry Revich : Okay. Super. And can I ask on the battery electric investment, you folks have really good connectivity with your clients on the consultation side. Once you get the plant up and running, how quickly based on your conversations, do you think demand will ramp up? How big are the concerns around the utilities’ ability to keep up versus having a product that’s going to be producible at scale that you folks are effectively going to be solving for the industry in 2027?
Preston Feight: I think you just captured the issues that are unknowable at this point right now. Regulation is a factor. Energy is a factor. Infrastructure is a factor and the rate of adoption for EVs. Price is a factor as well. But our position is as PACCAR is, we want to make sure that we offer our customers the right solutions, right? So we make the investments now. We’re less concerned about whether the adoption curve is rapid in ’27 or if it’s ’28 or whenever it is. We’ll have great diesel engines, we have great electric vehicles, great hydrogen vehicles. And that puts us in a position of supporting their needs regardless of the circumstances.
