Michael Speetzen: Yes. I mean it certainly isn’t the topic that it used to be around here. I think we resigned ourselves that these things feel like they’re probably going to be permanent. It knows what’s going to happen here in ’24. But we can’t control any of that. I mean we have a great government relations team, and they’re constantly advocating for us even though there aren’t a ton of them, but the exemptions, making sure that those get renewed and those types of things and fleeting our case because we do think we’re being incredibly disadvantaged — as the global leader in powersports, the truly only U.S.-based company, and we’re the only ones really paying tariffs seems a little wrong to say the least. The near-shoring opportunity is something we’ve continued to push.
I would say we’ve made inroads, but there’s still a lot more to do. And frankly, I think there’s a lot more to do in terms of shoring — not shoring but locating our sourcing within Mexico, given how large our footprint is so that we make sure that we’ve got continuity of supply, and we’ve got things being produced in the region as opposed to coming from continents away and being subjected to the vulnerabilities and the risk of the supply chain, then obviously, that does give us potential tariff benefit. But we haven’t built in some substantial improvement. We know really well what those tariffs are and how to calculate them. And look, if we get some level of good news, that would be great. I’m not counting on it. I think even if there’s a Republican in the White House, I think the pressure relative to China is still so great that it’s going to take a while if those things go away for them to be acted on.
So we’re going to continue to do what we do and act like they’re permanent and do it great for the business.
David MacGregor: Great, thanks. Top of the hour. I will pass it on. Thank you.
Michael Speetzen: Thank you.
Operator: Thank you. The next question is from Jaime Katz with Morningstar. Please go ahead.
Jaime Katz: Hi, good morning. Thank you for all the color you guys have offered this morning. Two quick ones. First, any update to what you’re seeing with lending standards from your finance partners and then if you can share maybe how you guys are thinking about price versus mix in the ORV segment and how that trends over the next few quarters? That would be really helpful. Thanks.
Robert Mack: Sure. I’ll take the financing question first. Really been pretty consistent. Our pen rates have improved as we’ve seen smaller kind of niche lenders leave some of the markets, some of the credit unions and things have backed off some of their financing. So that usually plays well for us. Our pen rate is up about 100 basis points in the quarter and for the year. Approval rates have remained consistent and FICOs are up about eight points in Q4 versus the rest of the year. We don’t see major trends there. I think what we have seen is lenders pushing a little bit harder on debt to income and borrower cash flow as opposed to just relying on kind of credit ratings and FICOs, but I think in terms of credit quality and availability, that hasn’t really been the hindrance.
The rate has been more of a driver in terms of people willingness to finance. Price promo, I think across the industry, you’re going to see pricing itself, MSRPs to be relatively flat, I don’t think anyone sees a great opportunity to take a bunch of price this year. And promo, we talked about being relatively flat other than the lapping kind of Q1 where we’ll have higher levels in Q1 relative to what we had last year.
Jaime Katz: Thank you.
Operator: Thank you. This does conclude our question-and-answer session, and the conference has now concluded. Thank you for your participation. You may now disconnect your lines.
