Richard Kramer: Yeah, Emmanuel, I’ll just jump in and echo Christina’s points. I think we take a lot of time to go through those capital plans. And we’ve worked through a lot of cycles and I think you can count on us to adjust CapEx to the end environment we’re in. And then when we do that we really don’t shortchange ourselves, excuse me on what we see as long-term growth projects that we have to do. So we were comfortable with what we spend. And I would just tell you, even if you see things like things that we did at CES around intelligent tire and around sustainable tire. There are projects, growth projects, industry leading sort of technological projects that we’re going to continue to move forward within the capacity of the spend that we have. And we feel comfortable of knowing how to do that.
Emmanuel Rosner: Okay. Yeah, I appreciate the color. And then just very finally, I guess, since you’re mentioning the environment, can you maybe just provide a little bit your perspective on some of the drivers of this market, demand weakness that seems to be across every region, every major region, I guess. What is driving this? How will you see that potentially evolve through 2023 on the demand side? And then any implications for how to think about pricing?
Richard Kramer: Yeah, I think a lot there. Maybe I’ll just start with the Americas. We did see a weaker market in the fourth quarter and we see a little bit of slowdown coming into Q1. We reacted not only to the Americas, but Europe as well, as you saw on our Investor Letter by taking production down with that focus on making sure we don’t have excess inventory, a bit of a slowing market, and to focus on cash as Christina went through. But as Emmanuel, as I think about the Americas going forward, you also saw in our letter, we saw that our channel inventories are up about 10%. But what I would tell you is that’s pretty healthy. I mean our distributors are really rebuilding their inventory, we didn’t see any buy ahead, so I’d say in anticipation of any price reductions or anything like that.
It’s a pretty healthy place and I would say in-line with the expectations of where the market is going in ’23. So we feel pretty good about North America. A little slow to start, but I think we have a stronger second half coming, a little slow to start, because we’re bringing some of those costs on the balance sheet of unobserved inventory into the first quarter as well. But we feel pretty good about the demand. Picture, sell out was about flat in the fourth quarter, and year-over-year in the fourth quarter. And we don’t see any big changes going into the year. Europe, I think, a little bit different story. Obviously, a bit tougher there. I would take a step back and say we feel really good about the initiatives, we’ve put in place in Europe.
Aligned distribution is working. In the quarter, we got volume, we got price mix ahead of raw materials, again, and we had share gains in a down market across the board for I think the 11th or 12th quarter in a row. So, things are working in Europe. We also as you know, took a lot of actions there to get our costs in line. I would say we feel really good about those things. But obviously, in Europe, we’ve seen big energy inflation in Q4 driven by the war. And we saw in anticipation of these high energy costs, really sort of the reduced consumer demand out there, as we saw really weak markets in the consumer replacement business, particularly in November and December, where we saw a consumer base thinking about big energy bills, and the channel sort of slowing down on wanting to buy more inventory.
