And we’ve had examples, and we’ve talked about this in the past, where existing customers with existing — both platforms have come to us, ask us to evaluate opportunities to optimize. And using our design capabilities and our portfolio of solutions, we’ve been able to reduce weight and mass by 25% to 30% and overall systems cost by 20% or more. So, given our historical capabilities given our strength, and from a product portfolio standpoint and our knowledge of vehicle architecture, we bring a lot to bear. I’d say the third piece as we’ve talked about this transition to battery electric vehicles, which in reality has been underway for a long period of time, and we’ve seen elements of fits and starts during that period. And we’ve been impacted by those fits and starts.
We’ve been very selective as it relates to those customers, those platforms that we operate on. And we operate on those that we have a high level of confidence they’ll be global. They’re designed specifically for battery electric vehicle platforms; therefore, we’ll get volume. And then from a contracting standpoint, we contract very carefully to the extent we see volume reductions, there are changes in pricing. So just given our past experience, again, as we’ve seen battery electric vehicles developed and the attempt to introduce some into the markets for the last several years, we’ve learned a lot of lessons, and we’ve lessons — and we’ve established a really, I would say, a fairly conservative approach in terms of how do we manage risk, but at the same time, how do we develop a portfolio capability that provides our customers with lower cost solutions because we are big believers that over a period of time, you’re going to continue to see significant penetration of electrification in our industry.
Rod Lache: Great. That’s helpful. Thank you.
Operator: We will take our next question from Chris McNally from Evercore. Please go ahead.
Chris McNally : Maybe I could start on the top line and macro. I know it gets kind of confusing, talking about North America with the upcoming UAW. So maybe Joe, we can focus in on Europe. Just some quick numbers on the 4% to 6% production, which is lower than the forecasters, I think we have something like 15%, 16% in the first half, so it implies down in the second half, obviously, inflation prices and cost of living, et cetera. But curious if your seeing anything specific. You obviously have a lot of insight there or is there’s just a bit of conservatism built in for the next couple of months as schedules firm up?
Joe Massaro : Yes. Chris, it’s a good place to start. I would say Q3, we’re on production schedules, right? So, we’re sort of locked in at this point with our customers, and we’ve obviously have been through July. Certainly, and as I said in my prepared remarks, certainly, to the extent there is more production in the back half of the year, I think we’d certainly benefit from it, remaining a little cautious, just given all the — all the potential sort of macro ups and downs. It’s still. The environment is not perfect. It’s still a challenging environment. It’s — as Kevin said, it’s much better. But yes, a little bit of caution and — but more in the fourth quarter than in the third. And third, we’re fairly locked in at this point on customer schedules.
Chris McNally: That’s really helpful. And if I could just follow up some numbers to Mark’s comments on ASUX where the margin progression does seem like it’s starting to take off. I think from your 8% to 9% a full year it sort of implies the back half roughly 10%. So, we usually because of some of the price issues we can sort of use it as like a base, and you have a 13.5% — 13% to 13.5% target for ’25. Given that I think that $190 million you just laid out in recovery, a lot of that will come in ASUX assuming that we have, okay, up small, low single-digit volumes next year that we can kind of split the difference, and start to think about ’24 being somewhere in between the halfway point of that 10%, and let’s call it 13.5%. Or is there anything that takes longer, why it would be more of a back-end loaded 13% plus margin in ’25?
Joe Massaro : Yes. We–I’m not going to get into ’24. It’s a little too early in the year to do this. I think we remain confident in the ’25 numbers for both total active as well as the segments. I would think it will be a steady march of continued volume growth in the key product lines, continued improvement. The price — the team has done a good job on inflation recoveries. The environment, you could still have lumpy quarters between then and 2025 but feel like it’s going to be a pretty steady march. Exactly where 2024 falls out, it’s obviously something we’ve got to work out. But as we look at what’s rolling on in that business, increase software content, those types of things still remain confident in that 2025 range.
Chris McNally: Very helpful. Thank you.
Operator: We will take our next question from Adam Jonas from Morgan Stanley. Please go ahead.
