So positive in that regard. I heard everything you said about the sensitivity to market, there’s truth in that as well. And that way, we’ll just look at what 2024 does.
Tim Thein : Okay. All right. Fair enough. And maybe one, just from an inventory level at your dealers, both new and used. Just where do we sit there? And I guess, kind of the related question is the appetite for dealers from a stocking perspective in ’24. Just where does that sit? I’m sure it varies by geography, but maybe just some thoughts on that.
Preston Feight: Yes. Very good, Tim. You did ask that the first time. Sorry, I missed it. We saw that there was some probably strong interest in having enough inventory when supply was limited. And I think that, that was mitigated for a little bit. And I would say things are more back to normal in terms of overstock, destock and kind of sitting at a level where inventory feels like a rational and healthy level for our dealers now.
Operator: Our next question today is from Nicole DeBlase from Deutsche Bank.
Nicole DeBlase : Maybe just starting on Europe. So obviously, a lot of talk about U.S. and Canada on this call, but what are you guys seeing from an order perspective within Europe that’s kind of underpinning a weaker outlook for 2024 relative to the U.S.?
Preston Feight: Yes. I think that what we’re seeing in Europe is like we have good fill going into the first quarter. It feels like the general economies over there feel a bit more moderated than they are here. And so there’s probably more contemplation going on within the customer base there.
Nicole DeBlase : That makes sense.
Harrie Schippers : No, I think that’s absolutely correct. The market is a little bit softer there. And that’s why we’re forecasting a market between 250,000 and 300,000 for next year. So that’s somewhat of a decline compared to this year.
Nicole DeBlase : Understood. And then in the U.S., can you just speak to a little bit of what you’re hearing by customer side? So any major divergence in order activity from like small versus medium versus large fleets?
Preston Feight: I think it’s kind of interesting is that like we said earlier in the macro scale of it, there’s a lot of sectors that are doing exceptionally well right now. The vocational sector is probably just spinning up. It’s a very strong sector for PACCAR in North America with Peterbilt and Kenworth having roughly 40% of that market. So that’s good. We see some real strength in the LTL market as well, we see real strength in the medium-duty market as well. As I shared earlier, I think that the large truckload carriers are contemplating what they’re going to do and thinking about the next 3 years and keeping their fleets at a young spot. And I think for all our customers, there’s the advantage of the new truck, right? If the truck is providing a 7% benefit in fuel economy, it’s compelling reasons to buy that truck plus the drivers love it. So those things factor in, and it kind of gives you a walk through across the sectors of the market.
Operator: Our next question is from Matt Elkott from Cowen.
Matt Elkott : So your 2024 U.S. and Canada Class 8 forecast, it reflects what seems to be a smaller decline than some may have feared. My question is, given you guys have higher exposure to infrastructure than some of your peers, do you think backlog can do even better than this forecast in the U.S. that is?
Preston Feight: Better than the forecast in terms of?
Matt Elkott: A smaller decline even than the 8% that you’re expecting for the industry?
Harrie Schippers : Our strong presence in the vocational segment where we have 40% market share, that strength obviously should translate into PACCAR doing really well next year.
