“That’s something, though that over time, we do expect the balance sheet to grow, and we would expect some continued borrowing cost headwinds, but those will moderate and ease over time as the portfolio returns.”

In context

“. At one point, you had, I think, post-COVID, taken the reserves up to 1.2% of managed receivables. Is that sort of something that you’re -- that’s implicit in these numbers, or is there anything else in there that’s driving that level of profitability? Marion Harris: Yes. Let me just give you the key takeaways here. First of all, our balance sheet is significantly smaller than it was a few years ago, right off the top. Second, we’re no longer releasing COVID-related credit loss reserves. We’re back at what we would consider normal reserve levels. Third, our lease depreciation tailwinds are mostly behind us, and we have lower used car values as we look forward. And fourth, our borrowing costs are higher, which we haven’t been able to fully pass on to customers as rates have risen rapidly. That’s something, though that over time, we do expect the balance sheet to grow, and we would expect some continued borrowing cost headwinds, but those will moderate and ease over time as the portfolio returns. Operator: Your next question is from Mark Delaney with Goldman Sachs. Please go ahead. Mark Delaney: So maybe you could share more on the timing to bring L3 products to market? And is that something you think Ford will be developing in-house perhaps with some benefit from Argo capabilities? I was just thinking something you perhaps leverage from some of the suppliers in some of their potential input or maybe some combination? Jim Farley: Thank you, Mark. I think, Doug, is best suited to answer this. All I would say is that we’re timing the arrival in line with our second cycle of EVs and a fully updatable -- software-updatable vehicle. So kind of think of that ‘23 to ‘25 time frame is Ford completely refreshing its EV lineup globally, introducing fully updatable electrical architectures a”