Michael Feniger: Yes. Thanks for taking my question. Obviously, the pricing in 2023 was very impressive. I know you talked a little bit about the used market, I’m curious when we look at the spread between your price increases for 2024 relative to what you’re seeing in the used market with trade-in that spread widening? Just any commentary that you’re seeing in the used market that kind of informs 2024? Because obviously, the used market was very strong a few years ago. It seems like it’s some cooling, but I’m just curious how we think about that spread between the new pricing they use and how to kind of think about that for 2024?
Preston Feight: Well, I think what’s — maybe one of the things you could throw into your factors of consideration is the fact that in those high point markets where contract rates were at all-time high, spot rates were at all-time high. Some people got into the trucking business and some of those people are getting out and that’s contributing to the spread between new and used pricing. As you have some of the people exiting the market is normalizing the used truck pricing. So I think there is a bit of a larger differential between new and used, and I think that will reset itself over time.
Michael Feniger: Perfect. And just to follow-up. Another different customers in the transportation market who buy your trucks. You put up excellent truck deliveries in 2023 at a time where spot freight rates were actually falling. And now that we see spot freight rates potentially bottoming and maybe picking up through 2024, how do we kind of think about what happened in 2023 and how that might potentially play out in 2024 and how that kind of translates to demand for your trucks?
Preston Feight: Well, what are the underlying contemplation should be that what’s the economy doing? And as we noted in our commentary, we see economic growth in 2024, which we think as the most fundamental principles should be good for the truck market, especially as we continue through the year. And you put that economic growth against that spot rate bottoming that you talked about, and it should set us up for a good year in 2024.
Michael Feniger: Thank you.
Preston Feight: You bet.
Operator: Thank you. Our next question is from Guillermo Herrera from Gabelli Funds. Guillermo, please go ahead. Your line is open.
Guillermo Herrera: Hi. Good morning, guys. Thanks for taking the question and congrats on the great quarter.
Preston Feight: Thanks.
Guillermo Herrera: So maybe more of a high-level one here than the ones we’ve been talking through so far. But — you’ve been doing a great job generating cash and there’s a sizable cash position on the balance sheet right now. I’m curious, aside from dividend payouts, how should we think about how you might deploy some of that cash? And maybe just to get a little bit more specific here, could you provide us sort of any commentary on the M&A space and whether longer term, you might be considering inorganic growth as part of the growth story.
Preston Feight: Sure thing. We’re really pleased with how the company has performed financially. We have a strong history of dividend payouts of around 50% of net income. We continue to do that. We noted in our comments, record dividend payouts in 2023. We think our shareholders are happy with that approach. We’ll continue to do that. We do have uses for cash. Obviously, we are doing this joint venture, which will be something we fund out of cash. PACCAR has got a long history of making strategic acquisitions when they make sense, and we continue to make those evaluations at all times. And having the cash gives us that flexibility to build an even more robust company as we move forward into the future.
Guillermo Herrera: Great. Thank you.
Preston Feight: You bet.
Operator: Thank you. Our last question today is from Daniel Johansson from Pan Advisors. Daniel, please go ahead. Your line is open. Daniel, please can you check you’re not un-muted likely.
Daniel Johansson: Hello? Hello? Can you hear me?
Preston Feight: Yeah, we can, Daniel.
