David Johnson: Yes. So, I think you understand it well in terms of model change and what that means is now the announcement is out there, customers are saying that’s the product they want. I think 500 horsepower is a really important figure in trucking around the world. Of course, everyone can drive the 460 horsepower product or the 420 horsepower product. But fleets really like to have that added capability of 500 horsepower. And so it is some kind of magic number that’s really important in the marketplace, and customers are wanting that. Moreover, in long-haul trucking, people want to go as far as they can go in trucking. And so, the extended range that is offered through the efficiency that was unlocked in the product and the range that was unlocked by a larger tank also very appealing.
So, we have this phenomenon kind of the opposite of a pre-buy, that is, instead of buying in advance emissions change, they are waiting and buy later when the new product is available. So, and then I would say importantly in the marketplace, I think our product is generated and our customers product generate a very strong reputation. There is a lot of pull for it. And through all the difficulties that we have had over the last few years in Europe with COVID and Ukraine war and inflation and chip supply, all of these challenges, we see that the trucking and the emissions push around the world to clean up trucking has persisted and even accelerated. So, when we think about 2030 with the 45% reduction in CO2 now being proposed as a requirement in terms of reduction of CO2 and 90 % by 2040, this is really pushing in the direction and fleets understand and OEMs understand that they need to move in the direction of cleaner trucking and then they see how our offering of HPDI.
First with LNG, then with bio LNG, then with hydrogen is a really excellent path to follow. Very affordable, very practical delivers for the trucker, and doesn’t require a lot of investment. So, we see that all of the – all the indicators are pointing in the right direction. So, we have to get through this year, challenging transformational year for us. But we see a very bright future already and hopefully in the fourth quarter and then into 2024.
Eric Stine: Yes. Understood. Thanks. Last one for me, maybe for Bill, just, I know that potentially securing more debt, just feel more comfortable on the balance sheet has been a priority. And I know that that’s often centered in Italy where a lot of the operations are in the light-duty business, so maybe just a status update on that.
Bill Larkin: Yes. No, we are continuing to pursue options around debt financing. I was just over in Italy a few weeks ago meeting with our local banks and talking about what options we do have available. It is attractive. There are still tie-in government programs available, which essentially, they guarantee the debt, which in turn drives a substantially low interest rate on those loans. So, we are going to go – we are in discussions with the banks and pursuing those, as well as we are evaluating other options here at the corporate level in terms of debt financing.
Eric Stine: Okay. Thank you.
Operator: The next question comes from Jeff Osborne with TD Cowen. Please go ahead.
Jeff Osborne: Hey, good morning. Just a couple of questions on my side. A lot’s been already addressed. Bill, how should we think about linearity through the year? I know you don’t give quarterly guidance. Should we think about 2Q being similar to Q1, and then a ramp up in the second half?
