Preston Feight: Sure. When we think about the technologies that will bring us to the future, we think this will be the dominant path forward for the next several years. But we’re all trying to understand whether it will be driven by battery electric, hydrogen question or hydrogen fuel cell as the capabilities for zero emissions products and PACCAR has made prudent investments into each of those technologies. So we understand them, so that if one brings a distinct advantage to our customers, we’re ready to offer it to them. And as you noted, we had that both trucks, we had a battery electric and hydrogen fuel cell at CES. Because we’re working on both of them. And we’ll put it on the market with financially.
Jeff Kauffman: And the fuel cell truck, I’m assuming that’s Toyota engine with the partnership. But is that a commercial grade engine? Or is that more passenger cells that you’re using?
Preston Feight: I think what we’re doing is developing a product that’s specific for the truck market. And we’re doing that in close collaboration with them.
Operator: Our next question comes from Scott Group from Wolfe Research.
Scott Group: Hey, thanks. So if you guys hold this 16%, 17% gross margin for the year, it’s, it’ll be your best gross margin ever. I guess how should we think about the new range of gross margins through a cycle meaning if in the last decade, it’s been 12% to 15% give or take is the right range? What do you think the new range is for gross margin to recycle?
Preston Feight: Well, I think of it is PACCAR has an incredibly capable team of people around the world. And they’re doing a fantastic job of giving our customers the trucks and transportation solutions they need. This is a really strong company. It’s a growing company in all elements of the business. So we look forward to the future pretty well. And the margins will be good, we think but they’ll obviously be what the market is.
Scott Group: Okay, and then is there, I know there is some mix changes with wholesale versus retail on used? Is there any kind of sensitivity you can give us on used prices and the FinCo margins earnings and any help you can help us with?
Harrie Schippers : Yes, used truck prices have come down a little bit from the historical highs earlier last year. But I would say that even at today’s valuations, used trucks are a very, very attractive business for the finance company selling used truck and making profits while we do so.
Scott Group: Do you think FinCo is a business that can grow earnings this year?
Harrie Schippers : Well, we don’t guide that specifically on the FinCo earnings for the year. But I would say that 2023 will be another excellent year for the finance company.
Operator: Our next question comes from Miguel Borrega from BNP Paribas Exane.
Miguel Borrega: Hi, hello, everyone. A couple of questions for me. The first one, just on your market guidance for Europe and North America just wanted to understand why would you not expect more growth from both markets assuming supply chains keep easing. So what could be kind of the headwind on production for 2022? And also, why are you less positive on European markets versus North America given that your exit rates are much stronger in Europe versus the US? Thank you?
Preston Feight: Well, I think we’re positive on the European market, positive on the North American market. And I think that we feel good about the year, I think that our production rates are increasing. Obviously, we see that in the fourth quarter first quarter production plans. And though there could still be uncertainties in the supply base and that could have an impact. But right now, it looks pretty good.
