Dan Sceli: Yes, I mean, I think, I don’t know if you saw the latest market news. Our OEM customer has announced continuing development of hydrogen and how it plays a – the hydrogen ICE engine plays a key part in their strategy going forward. We’re hearing that from a number of OEMs, so we’re getting an awful lot of interest in the hydrogen HPDI as a solution for the next five, 10 years. So, yes, the development’s continuing and it makes us very optimistic about the longer term.
Jeff Osborne: Great to hear. That’s all I had. Thank you.
Operator: Thank you. Your next question comes from Mac Whale with Cormark Securities. Please go ahead.
Mac Whale: Hi. Good morning. Just one quick one for me, Dan, I’m just wondering, as you right size the organization, where do you think the biggest risk life for the business? Is it potentially a negative impact on sales? Or is it that you make these changes and don’t get any impact on margin? I just want to understand the risk versus the goals you’re after.
Dan Sceli: Yes, sure. So that’s one of the reasons that it’s not like hitting a light switch, Mac. We’re looking at each part of our business, each discipline, each region, figuring out where we can cut without affecting our ability to continue to grow the business. As Bill said, we can’t cut our way to prosperity, but we have to right size the business. So each discipline is being looked at to get it right sized to the business we are today with a view forward to where the growth opportunities are. So while we’re trying to corporate overhead, as an example, we’re trying to get that right sized. And we’re on the technical side, the engineering side. We’re keeping our team focused on these big development projects. As we talked about, we have a bunch of big development projects that are really going to lead to our future. So, we’re not cutting those, but it’s just right sizing every discipline to the business we have.
Mac Whale: Okay. And then just as a follow up, then is can you put a timeline on how long that takes? Like, is there a sort of, is it a couple quarters? And then you’re in this new sort of organizational structure, and then you expect maybe a year or two to get a benefit from that. Like what’s, how should we be thinking about that?
Dan Sceli: Yes, that’s probably a good way to describe it. I think that the corporate type cost cutting is, happening faster than some of the operational cost cutting, because, while we look at our operations to get those fine-tuned, you can’t cut them as fast because you’re delivering product every day. So to me, it’s two different buckets. Getting the corporate to overhead, right sized, we can do pretty aggressively. The operational stuff takes longer, putting in place, some of the disciplined manufacturing processes we want to use. As I mentioned, like inventory management and getting that process between when a customer orders and we order from a supplier, getting that efficiently balanced, those things take a longer time. So it’s going to be into next year before we see some of those benefits. We’ll see the corporate cost cutting benefits by the year end, and then we’ll roll into next year with the continued focus on the operational side.
Mac Whale: Great. That’s all I have today. Thanks, guys.
Dan Sceli: Thanks, Mac.
Operator: Thank you. Your next question comes from Eric Stine with Craig-Hallum. Please go ahead.
Eric Stine: Good morning, everyone.
Bill Larkin: Good morning.
Dan Sceli: Good morning. How are you?
Eric Stine: Hey, so, hey, so I know right here at the end of the call, most everything thing has been touched on, but just curious, the Chinese OEM, I mean, this is certainly the most you’ve talked about it in a long, long time. And I know that LNG sales in China are quite high and the outlook there is very good. I mean, do you, am I off base in thinking that this kind of. I don’t know if it’s re-engagement, but pickup and engagement has to do with LNG. And I ask because, and this is before your time, Dan, but at one time, the view is wage. I might just skip LNG altogether and just move to hydrogen. And it strikes me that potentially that’s kind of being rethought, that LNG is a very viable and attractive opportunity.
Dan Sceli: Yes, I think LNG in the Chinese market as a whole is going to be continuing to grow and the transition to hydrogen, just like everywhere in the world, there’s a balance between when infrastructure gets in, when the price of hydrogen comes down, all those things have to align for hydrogen to take off, and it will. In the meantime, LNG is going to be the growth piece for China. And so the great thing is that our technology can run both. Right? It’s a, we call it the Bridge technology. It can run all of the different alternative fuels. So we, that’s why I keep stressing. We don’t have any orders right now from Weichai for production. We’ve been shipping them development parts for trials. We’re continuing the development work and, we’re optimistic that we will get the – get through the development programs and into production at some point. But we don’t have orders today.
Eric Stine: Yep. Understood. But a good sign nonetheless. I guess that’s it for me. Thanks.
Dan Sceli: Thanks. Take care.
Operator: Thank you, Eric. There are no further questions on the line. Please proceed.
Dan Sceli: All right, well, thank you very much, everyone, for your questions. I know I’ll be talking to a bunch of you throughout the day. I look forward to it. Thank you.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.
