So Europe is a different case. We know that’s going to continue for a little bit into 2023. First half especially second half again, as Christina said will be better. And we’re taking the appropriate actions to make sure we don’t build that excess inventory and make sure we focus on cash and continue to look at more cost areas. And remember in Europe, we’ve done a lot in terms of restructuring our footprint head and full value, so we did in UK in Belgium. We’ve restructured a business in South Africa and we did some restructuring to some sort of add volume and get some more efficiencies in France. So we’ll continue down that path. And then in Asia, and we’ll particularly focus on China here. Tough right now, because of COVID. But we really see that reversing and we see that reversing in our favor in two areas.
One is the OE business which was strong in the fourth quarter and will continue to be. We’ve doubled our win rate in OEs in 2022 to about 70%. And we have a higher mix into EVs a high EV win rate a high luxury SUV in truck, win rate as well with the domestic OEMs or Chinese OEMs. That’s higher profitability and will create good pull in the replacement market. And as COVID, sort of as we get through COVID, if I can say that’s going to happen toward the second half, we see a big stronger pull and it makes up in replacement as well. And to get ready for that we continue to invest in distribution in the key markets in China and in India, as well. So, so overall, look, we got to get through Q1 first half if you will, as we see some of this tumultuousness.
But beyond that, we do see some upside and feel relatively good.
Emmanuel Rosner: Thanks for the color.
Richard Kramer: Thank you.
Operator: We’ll take our next question from Rod Lache with Wolfe Research. Please go ahead.
Rod Lache : Good morning. Two quick questions. First, are you seeing anything that would indicate anything other than stable pricing as you’re entering this week this year just in the context of the weak demand? And can you clarify your expectations for the other tire-related businesses, has looked a bit soft in the fourth quarter?
Richard Kramer: Sure. Rod, from how we’re looking, I guess, I’ll say price mix and how we’re looking at the raw material environment that’s obviously related to that. You know that sort of the essence of your question is the earnings pressure and margin compression we’ve seen over the last quarters because of these escalating raw materials. That’s true for Goodyear, true for the industry as well, and we need to recover that. I would tell you, our momentum has been very good. Our teams across all our businesses offset all the raw material headwinds with price and mix. And in two of the businesses in Europe not being one of them, we also offset some of the other cost increases we had as well. So the team has done a really good job.
Now as Christina mentioned as well, we see this potential decrease for raw materials. And I would tell you, our plan is to capture the benefits of those raw materials and see that in margin improvements as we continue to capture our value proposition out in the marketplace. And I think, Rod, you know this well, having been with us so long, historically, in a period of declining raw materials, we’re able to grow margins, we’re able to drop through those benefits into the — into our earnings. And I’d say we see that as still the plan and our way forward and what we’re driving for. And also tell you what can help them, excuse me, is we also see the OE business coming back, which means they’ll be a pull on the best capacity that the industry is making.
