Harrie Schippers : Yes, I would like to emphasize too, that the supply base has been improving. But we still see uncertainties in the supply base. And that’s why we have the ranges that we have for the first quarter. And for the markets for North America, Europe for the entire year.
Miguel Borrega: Great. And then my second question just on shareholder returns. This is obviously a record net cash position. Can you give us a sense on how much cash you need to run the business? And how are you thinking about capital allocation going forward? Thank you very much.
Preston Feight: Well, we have a very good history of how we allocate capital, and return excellent, returns for our shareholders. As we noted, 70% return last year, we pay dividends every year, that goes well for our shareholders. And we use money in a smart way, make future investments in a way that’s also good for our shareholders. So anything you’d add, Harrie?
Harrie Schippers : Of course, it’s nice to see that the cash balance increased to more than $6 billion at the end of December. So that’s really nice milestone that we that we achieved. And bear in mind we paid a nice yearend dividend, almost $1 billion that we will be paid in January. So we use the cash to make the investments that the Preston mentioned, but also to make a nice return for our shareholders.
Operator: Next question comes from Michael Feniger from Bank of America.
Michael Feniger: Yes. Thanks, everyone. Just two questions, one on a longer term and the shorter term, just first off, is there anything you think the industry, the OEM learned in 2022 that is more sticky, and structural in terms of managing orders, production pricing strategies, even as production bottlenecks ease and normalize? Is there anything that sticks out to you that could be kind of a more structural thing going forward? Maybe pricing discipline with some of these more public players? Love to get any comment on that?
Preston Feight: I think in answer to that I think our teams do a fantastic job of working closely with our customers, to understand what their needs are, and making sure we meet their needs as quickly as possible. I think the teams specially in 2022 did a great job of, our production teams, or purchasing teams or materials teams and our suppliers together, of producing as many trucks as we could for the customers with that strong demand. And I think that PACCAR has a long history of trying to work well in all market conditions. And I think we’ll continue with that.
Michael Feniger: Understood. And just for a more shorter-term question, some market participants point to a rollover and freight spot rates and this gap between spot rates and contract rates. I’d love to know how you view that? Is that just a smaller portion of the customer base doesn’t really accurately reflect maybe the strength of the freight market or pent-up demand. Just curious how you in your seat, how you view that distinction?
Preston Feight: I think we try to take a broad look at it and think that freight tonnage is up over 3%, 3.7% for the yearend 2022. So that’s a good indicator of what’s really going on out there. And as I’ve shared and we’ve talked a lot about, I think older trucks are more expensive to operate. And with our introduction of new trucks, coupled with strong ton miles being driven, that’s good for PACCAR and bodes well for a strong year.
Operator: Our next question comes from Jerry Revich from Goldman Sachs.
