Episode Transcript
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Speaker 1 (00:00):
In the past couple weeks, we've seen a lot
of changes, especially in my home country,
with all these tariffs going around and
Donald Trump literally losing his shit on
anybody who badmouths or says anything
against the United States.
The auto industry is one of the biggest
players in my home province. Not where I
live, but the South and before all of this,
(00:22):
the government gave out tons and tons of
subsidies and tax benefits to woo all kinds
of North American players and global
players in to create a brand new EV
automotive culture.
Well, that's all backfiring right now, with
Trump and all of his tariffs going out.
(00:42):
Now we've all talked about Trump and his
tariffs in a previous podcast, but it's
literally shutting down plants now.
So what is Canada to do?
Well, why don't we listen to something that
I learned about 24 years ago and make
better partners with some of the BRIC
nations, ie being China?
The sea, yes, canada versus China.
(01:05):
We've been at war for quite a while, but
maybe it's time to look at the other side
of the field.
So today, AutoLooks is going to be taking a
look at how Canada could benefit by getting
rid of the 100% tariff on Chinese EVs.
(01:26):
Welcome back to the AutoLooks Podcast.
I am your host, as always, the doctor to
the automotive industry, mr Everett Jay,
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(01:49):
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So, like I said in the beginning, canada
versus China yeah, you might think of it.
That's kind of a weird combination.
Sure, we're the second largest landmass for
(02:10):
a country in the world and we hold oh, what
is that?
Between 30% of the fresh water on the globe.
But, like China, we also have rare earth,
minerals and a growing economy.
And now, with our best friend literally
beating the living shit out of us ie Donald
Trump in the United States Canada needs to
(02:32):
figure something out.
Most of my life well, let's say all of my
life up until now, canada's largest trading
partner has been the United States, with
over 85% of our trade dealing with the
United States and the 15% being everywhere
else in the world.
Now, like I said in the intro, something I
learned about 24 years ago I took a course
when I started college called Canada and
(02:54):
World Affairs, and I learned all about that.
Sure, 24 years ago we had 85% of our trade
with the United States.
At that point in time, china was starting
to allow capitalist ideology within their
markets, same with Brazil In the amount of
population they had.
They changed to a society like ours.
(03:15):
Within a decade they would explode and be a
viable market for us.
That would have been by 2011.
And by 2011, they were right.
Brazil was growing, china was growing, but
Canada was not growing its market share in
these countries.
Now, with the United States being our main
trading partner, being right next door to
us, having this wide, open border that we
(03:37):
could crisscross so easily, between the two
of us, we were best friends.
It was a great time.
Now, way back at the end of the World War
II, we had our protectionist measures,
because we all protected our nations.
There was tariffs.
There was the Auto Pact back in the early
days, which stipulated that up to 20% of
North American automobiles had to be either
(03:59):
made, or had parts made, in the confines of
the Commonwealth of Canada.
Sure, we were a small market after World
War II.
What was Canada Like?
12, 14 million people?
We're over 40 now.
So you think that's pittance compared to
the United States, which was over 200
million people at that point in time.
So why would they want to build anything
here?
Well, the auto pact, and with that we built
(04:20):
the auto industry.
As the Americans came in and slowly
destroyed any of our home-bred auto
manufacturers, with McLaughlin Buick being
one of the last major ones to be taken out,
becoming part of General Motors, we saw our
own automotive market collapse.
But the Americans were right here.
They were building stuff in the confines of
Canada.
Why?
(04:40):
Because it was an easier step to get their
products into the other Commonwealth
nations Want to sell them to the Great
Britain, Hong Kong, India, South Africa or
even Australia.
You build it in Canada.
It's not tariffed like if you ship it from
the States.
The Americans learned this.
But now, with Trump putting all these
protectionist measures on all of our stuff
and adding, just this past week, an extra
(05:02):
10% on top of the tariffs he already has,
just because he got pissed off about
something that a previous Republican Party
leader had stated about tariffs.
He's like, literally, that kid in the
sandbox where, if you don't let him play
with your toys, he literally throws sand in
your face.
But how is China a viable product for us?
(05:25):
Well, the Americans moving out of our
nation.
Ford pulling its plants to produce electric
vehicles in Canada and pushing just extra
production of their F-250s to their
Oakville plant.
GM just shuttering the CAMI plant that they
built alongside of Suzuki way back in the
80s in Chrysler, or Stellantis, as it is
now pulling the plug and building the brand
(05:46):
new compass at the Brampton facility.
On top of that, stellantis is solely
pulling back from the massive battery plant
that they have in Windsor.
And Volkswagen, well, their deal for their
massive plant in St Thomas is still there,
but with all their products being made in
the United States, there's still a slight
possibility that it could disappear.
Like I I said, our government gave billions
(06:06):
that's billions, with a B, in tax incentives
to get this industry to stay here, and now
they're leaving to go back.
But with China, what can we do?
Everybody's scared about these low-cost
electric vehicles from the Chinese
marketplace and now they're starting to
flood the European marketplace.
Now they're heavily subsidized in their
home nation.
(06:27):
And if you actually read anything into this,
rivian just released a statement about that
after buying into Xiaomi SU7, literally
tearing the whole thing apart and stating
the fact that there's not much different
between them and Rivian.
The one main thing that Xiaomi has over
Rivian is that the government will build a
plant for them to make their cars and give
them massive subsidies to keep the price of
(06:48):
their automobiles down.
That's why you could buy something like a
Xiaomi for $50,000 American, or an
equivalent tesla model s will set you back
over $80,000.
They could build them cheaper thanks to
their government and their economy is
booming because of it.
So how does that play in to Canada losing
American production on our nation?
(07:11):
Well, currently we have 100% tariff on
Chinese EVs.
Now China has also put a reciprocal tariff
on canola and agricultural products pork
from Canada, so our farmers are hurting.
Pull that back to the standard 10% that
existed previously, when companies like BYD,
FAW, Changan, GAC and even Geely were looking
(07:32):
at manufacturing stuff in Canada.
By dropping that, you can open up the
floodgates to their products, making more
competition available in a country of
Canada.
But if we're going to do this, we have to
do it right.
Okay, you can't just say, okay, we're
getting rid of all the tariffs, we're going
to let you in, and then they're just going
to manufacture everything in China and ship
(07:53):
it over here, kind of like they do with
Temu, and they managed to get under that
$800 package thing in the United States
until a little while ago.
Those are one of the few things that I
actually did agree with, because by getting
rid of that you're slowing the flow of
those cheaply made objects into our nation.
(08:14):
With the automobile we can do the same
thing.
We can create a Chinese auto pack similar
to we had in the 50s all the way up until
NAFTA came out.
Make it so that China has to manufacture a
certain percentage of vehicles and parts in
the confines of the Canadian playing field,
and that means full production, no
knockdown kits or anything else.
You got to buy stuff from us to put into
your cars in your country or you got to
(08:35):
build the damn things here.
Force them to set up design studios for
parts production, and car companies Utilize
good cities like Vancouver, Calgary,
Thunder Bay and Moncton.
New Brunswick if you didn't know this New
Brunswick is one of the top automotive
centers for the entire country of Canada
barely builds any parts, doesn't build any
(08:56):
more automobiles anymore ever since the
fall of Bricklin, but their love affair
with racing in the automobile industry is
bigger than nearly anywhere else in the
country.
So they know cars and they know our country.
You have a little bit of an Acadian aspect
to it.
So by putting design studios in places like
that Northern Ontario, the East Coast or
even Alberta you get more of a Canadian
(09:19):
aspect of it.
By putting a design studio in Toronto,
you're just going to get overflow from the
American economy Because let's just put it
right out there, southern Ontario is more
of what Trump would like to call the 51st
state, because they're a lot more
associated with Americanized ideologies.
Why do you think they watch the Buffalo
Bills instead of watching the Argonauts and
the Tigercats?
Okay, Canadian football, American football,
(09:39):
or, if you go out West, they're more likely
to watch Canadian football over American
football.
So let's give it to an area that's
predominantly known for Canadian ideology.
Ensure proper investments into Canadian
infrastructure, manufacturing plants,
design studios, parts manufacturers, and on
top of that, they have to get materials
(10:00):
from us, which means these car companies
now need to invest into our mining, our
forestry, our agriculture.
If you didn't know this.
Magna International, or Magna Steyr as it's
called in Europe, is headquartered in
Aurora, Ontario.
It's one of the biggest automotive part
manufacturers in the world and it's
Canadian.
Yeah, it goes right up against companies
like Dana.
But Magna makes Porsches.
(10:21):
Where do you think they get their leather
for those Porsches?
They don't get them from Scandinavian
countries.
You think they get a little bit closer to
like Finland, where they build these
vehicles?
No, a lot of their leather actually comes
from areas in Northern Ontario, outside of
Massey, Ontario, there was a large tract of
land that was sold to the Magna
International Corporation for cattle.
And why?
(10:42):
Because of a colder climate made the hides
Better for high-end automobiles.
So the use of agriculture you can use that
Soybeans to build parts, cattle for your
leather interiors.
You got your minerals all over the place,
especially in Northern Ontario, the
territories in Northern Manitoba.
There's tons of critical minerals that can
(11:03):
be unlocked by investing and building
production plants for these automobiles in
not just places like Southern Ontario, like
the East Coast of Canada, Winnipeg,
Manitoba, because Winnipeg is actually one
of the biggest production facilities in the
entire country for transport and buses.
If you didn't know that, I never knew it
for the longest time, I always just thought
it was a transportation hub.
(11:24):
But that is it.
It's a transportation hub, a transportation
manufacturing hub.
So, bid, you can build trucks out there.
FAW, you can build trucks out there.
Alberta with Design Studio Now wanting to
get AI technology Xiaomi, you want to build
your cars for consumption in Western
civilization?
Build a manufacturing plant in BC, have
(11:44):
your Design Studio and technology in
Alberta, who is one of the most heavily
invested areas right now for AI data
centers nearly $3 billion and, as of right
now, they have enough projects on paper
that they would need to double the entire
power supply of the whole province for
(12:05):
these centers.
So, companies like Xiaomi and Huawei, who
are big in the technology and want to build
cars for Western consumption, Alberta is
the place that would understand this.
Saskatchewan loves to build stuff.
They know mining Hell.
It's one of the biggest places in the world
for potash.
You can utilize all of this to help build
it.
But what Canada also has to do is develop
(12:26):
trade agreements with Central and South
America and Europe.
Europe is fighting to get all these Chinese
manufacturing plants as well, but Canada
has ties with European countries, how we're
considered the long-lost sibling of the
European Union.
We tried to join up, but we probably won't
get in.
But we're still considered the long-lost
sibling, especially the UK, so for us it's
(12:47):
easier to get into those places.
If you build in our country, you get all
the stuff and you could ship those products
over there.
You can utilize the best of the European
mixed with the best of Canadian.
Canada has a massive automotive industry
and if you've listened to some of our
previous podcasts, one out of every eight
jobs in the province of Ontario is tied to
the auto industry.
Nationwide that's almost double, but still.
(13:08):
At one point in time Canada was the third
largest automotive producing nation in the
world.
We're no longer in the top three, but we
still break the top 10 for a country that
doesn't even have its own car company.
So allowing the Chinese to come in and
build their cars in our nation by removing
these tariffs but adding an auto pack
releasing ownership of those companies
towards the government of Canada and
(13:29):
Canadian investors.
So we still own a part of what's being
built or supplied in our nation as well.
We can bring this here without it even
being part of our nation.
When you're building your cars, ensure that
90% of the steel comes from Canada, and
after you produce all these vehicles.
Like we said, get free trade agreements.
Canada and Mexico are working on their own.
(13:50):
Canada and Brazil should be fighting it out
as well, just like we are with the European
Union, just like we're trying to the Asian
nations.
You could build it here and ship it to
South America.
With massive infrastructure projects being
put out by Carney's liberal government
right now in Canada and massive expansions
heading for his first phase, the port of
(14:10):
Montreal, and the second phase is going to
be having the port of Churchill, Manitoba
and the port of Vancouver.
Hell, they want to push through expansion
in other ports all across this nation to
handle more products being shipped out,
inclusive of our minerals.
Create trade agreements between China and
Canada.
We give you the rare earth minerals.
You build the products here.
(14:32):
You could build the electronics on your
side, ship them over to have a manufacturer
in the cars that you sell here and ship to
Central and South America because we got
the agreements and eventually Canada can
grow its automobile nation.
The other part that can be stipulated into
this is one that I've been fighting for for
a long time In the city of Sault Ste Marie.
This is not the one I'm fighting about.
(14:53):
I'm going to talk about it.
Over a decade ago they developed a plant to
break down rubber compound into its
original source, recycling rubber tires.
But also a little company called Electric
Battery if you go back we did a podcast
about it it was called First Cobalt back in
those days, but now it's electric battery
Wants to build a battery recycling facility
(15:13):
where they break down batteries into the
minerals.
We could do that here.
Those could be supplied for the cathodes,
the electric batteries and that to go into
these Chinese or manufactured products in
our country and any leftover byproduct.
We can seal a deal with China stating the
fact that they get 20% rights of those
minerals to ship back to their own country.
Develop these deals.
(15:34):
We could save so much.
Set up a soft loop wood lumber.
Allow them to get lumber from us and
exchange for technology and automotive
production.
This can help spur massive growth.
Put right placement, in fact, you can
create more manufacturing to take place no
further than three hours from the material
mined, recycled or refined Used to spur
growth outside of the GTA and St Lawrence
(15:56):
area.
These parts and everything can be used to
benefit other areas of the country.
But my biggest deal that we really need to
make on top of these car companies being
able to own portions of the mines where
they get their minerals, which are produced
Essentially, mined, milled and refined in
the confines of the Canadian country and
then manufactured into final products into
the automobiles to help either boost
(16:18):
production volumes that they need for the
Chinese marketplace or for global
marketplaces.
We can help boost manufacturing mining
agriculture in our country by allowing
what's soon to be the world's largest
economy they're fighting it out with the
United States all the time.
The US can fight it out constantly become
the biggest market in the world, both the
(16:39):
population in both India and China, well
surpassing what's in the United States.
When both of those markets start start
getting to the same point as ours, they're
going to be massive.
India has protectionist measures where they
try and get everything manufactured in
their country.
The reason why that a lot of Chinese
manufacturers haven't entered the Indian
marketplace is because they're like the
(17:00):
United States you have to set up all these
production facilities and you don't get
anything else.
Well, they want to put them there.
But then a lot of these other countries in
the world don't have deals with India,
which means you manufacture it there.
You manufacture it for their market, their
market only.
You can't ship it back to China because
there's tariffs.
You can't ship it to the European Union
because there's tariffs.
Canada, with a multitude of different free
trade agreements to many different
(17:21):
countries, can help spur growth for these
Chinese companies by utilizing everything
we have to offer the globe.
We have oil, we have rare earth minerals,
we have oil, we have rare earth minerals,
we have textiles and we have a
manufacturing base.
We can give them every single thing which
helps them open up their market share in
Central America, in South America, the
Caribbean Hell.
(17:46):
We can help them be a jumping point for the
African marketplace, even though a lot of
them are a lot of protectionist measures as
well.
So by adding this and adding a percentage
that the Canadian government owns of those,
we're ensuring that we're going to make
money off of it.
Even if it's not made here, we're still
making a percentage off.
Well, they're still making a percentage off
of what we make here for them.
Everybody is winning.
But one of the greatest things we can
utilize this for is to build our own
(18:06):
automotive company.
If you haven't noticed already, there are a
lot of makes out there that utilize Chinese
products for their own homegrown product,
Wally's Automotive.
Chinese products Exeed Chinese products
for European marketplaces.
Sportequip for Italy, Chinese products, DR
Chinese product.
There's a lot of them out there that
(18:26):
utilize Chinese made product with their own
logo and name on it.
Well, if we all remember, that's how a lot
of these out there that utilize
Chinese-made product with their own logo
and name on it.
Well, if we all remember that's how a lot
of these car companies got their start.
China's automobile industry was created
with partnerships from other major
automotive corporations.
We tell these companies like BYD, Geely and
GAC the Canadian government will buy out
the CAMI plant from General Motors.
(18:47):
It's now part of ours.
Fuck off off gm.
You can go back to your states literally
just take your damn vans with you.
We own it, but we lease it out to bid to
build automobiles for other markets.
So we have our ownership in it, but along
with that we use it to create our own
brands.
Back in the day of the CAMI plant, you had
geo in the states, but in Canada we had
(19:09):
Asuna.
Now I don't want to bring back the Asuna
name.
We can create our own.
And if you really want to bring your own
Canadian-born car company by utilizing
Chinese products for our home market, you
can use one of two, one I'm putting it out
there my own perfectly registered and owned
automotive corporation name Aerodynamic
Motor Vehicles Corporation or Aero Cars.
Owned automotive corporation name
(19:29):
Aerodynamic Motor Vehicles Corporation or
Aero Cars.
On top of that there's also a project if
you've never heard of it in Canada called
Project Arrow.
Now, not to spell it, the same as mine,
that's why I really didn't put up a fight
about it.
Project Arrow is a bunch of parts
manufacturers from the province of Ontario
that piece together their own automobile to
showcase their technology and what we could
build.
They're looking for somebody that wants to
(19:50):
build this.
Tell these Chinese car companies they want
to come into our marketplace.
We'll get rid of the tariffs.
We'll drop it all the way down to like 5%
or 10%.
You're still getting a little bit of tariff
on it for vehicles that you ship over here.
But if you manufacture in our country, you
manufacture your products and you
manufacture under our own plant.
For project arrow or Mclaughlin or Acadia
(20:11):
or Aero Cars, we create our own home-grown
automobile corporation in partnership with
a Chinese manufacturer.
You have to remember the Chinese car
companies are creating divisions galore.
They're just like North America was at the
beginning of the automobile age.
Think about it.
We did our podcast about the divisions of
the big three.
They're General Motors, just take a look at
(20:31):
it Chevrolet, Marquette, Oakland, Buick,
Oldsmobile, Cadillac, LaSalle, a bunch of
others in there too.
Hell Chrysler Corporation, they had
Plymouth, they had Dodge, they had Fargo,
they had DeSoto, they had Chrysler and at
one point in time they had the Imperial
nameplate.
They had a multitude of different divisions.
So why can't we have our own dedicated
Canadian one?
The Americans did it when they were
(20:52):
actually part of the auto pack building
them here.
We talked about that in previous podcasts.
Companies like Acadian, companies like
Montclair, companies like Asuna or a Canadian
name on somebody else's vehicle.
The only difference is, this time around,
with something like Project Arrow or, again
using my name, Aero Cars, we retain
ownership rights of a minimum 35%, kind of
(21:15):
like Volkswagen.
Nobody can own over 30% of Volkswagen
because the government owns a large
percentage of it to ensure that Volkswagen
stays in the confines of Germany because it
is the people's car.
We do that with our car company.
See, even if this Chinese company ever
wants to leave, they can leave, but
anything we've developed or created
together is still partnership rights with
(21:36):
the Canadian manufacturer.
We get our own car company out of the deal.
Now they can write in and state the fact
that they can't sell these things in China.
Okay, whatever, we would love to expand
your market, but you helped us build our
own car company.
Why do we need to?
You know, go and fight you out.
It's the same reason why General Motors
basically stopped Magnet International
again from buying the Opel Vauxhall brand
(21:58):
because they were going to build a
manufacturing facility outside of Orillia,
Ontario, to make Opel's for the North
American marketplace.
General Motors said no, cut the deal short.
They had to pay a fine, but they literally
cut the deal short because they didn't want
to create more competition in the North
American marketplace.
You know, kind of like how Ford won't build
the Volkswagen Amarok for the North
American marketplace because it doesn't
(22:18):
want to build competition for itself, even
though it did before with the Mazda B
series.
Like, seriously, fuck off, just give us the
damn truck.
So, partnering up with mining companies
having Canadian ownership, having a
Canadian brand, all these massive deals
that Carney can actually take to China and
state that we want to be partners.
We don't want to fight anymore.
(22:39):
We're tired of working with the cheese puff
that lives below us.
We literally want to work with you guys.
Now, we still want to retain rights and we
still have issues with some espionage, but
that happens in all kinds of different
nations.
It's been happening south of the border as
well.
Eyes, now, we still want to retain rights
and we still have issues with some
espionage, but you know, that happens in
all kinds of different nations.
That's been happening south of the border
as well.
But we need to come to a common ground to
try and utilize this point in time to get a
(23:01):
stranglehold on this, because if that
president ever gets forced out or, you know,
in 2028 he actually does leave doesn't
change the law to make it so he could stay
forever, kind of like some of our prime
ministers in this country Trudeau, yeah.
But if they make a turn and they want to
drop all their stuff and allow the Chinese
to come to the marketplace, Canada already
has all the manufacturing.
(23:22):
It already has every single thing the
Americans want.
All we can say to them is fine, you want
their cars, you can get a percentage of
manufacturing of new plants, but the
pre-existing plants, if you want them.
We spearheaded a deal with China.
We retain ownership rights.
You can't take it away from us, basically
telling them this is our trading partner
now.
If you want the products they have, you got
(23:43):
to go through us.
We basically make a fortress of Chinese
automotive interest in Canada.
Remember when the Americans finally opened
their doors to it?
They got to come knocking on our door to
gain access to that fortress by playing our
cards.
Right now and I'm talking like right now,
not like two years from now, right now, in
2025, we're going to make a deal with them.
(24:06):
We're going to make a deal with China,
India, Brazil, South Korea, Australia and
the European Union, because once they start
cutting deals with the United States, we're
just second fiddle.
If we can cut the deals first, we're in
there first, which means we hold the higher
ground.
It doesn't matter how much population you
have, it just matters how many cards you
hold in the tower.
So, in the end, do we need an actual trade
deal with China?
(24:26):
Yes, and do we need an actual trade deal
with China?
Yes, Canada does desperately need one,
because they have tons of products they
want to manufacture on this side of the
world and they've already proven that by
building tons of stuff in Mexico, building
a free trade agreement between Mexico and
us.
They can still build parts in Mexico and
manufacture cars in here in Canada, or the
(24:47):
other way around.
We sell our parts to go into Chinese-made
products in Mexico.
We create the China-Mexico-Canada Free
Trade Agreement, or MCC.
Or, if you really want to go old school,
you could go like an old bicycle
manufacturer in Canada.
You can call it the CCM China-Canada-Mexico
Free Trade Agreement, the CCM.
Let's do it.
Let's get off our asses and literally
(25:07):
create this, because once the behemoth
below us cuts their deal, nobody's going to
care about ours.
We're smaller than the rest, but in all
reality, we can hold more playing cards
than they can, and that is the benefit of a
Canada versus China deal.
So if you like this podcast, please like,
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(25:28):
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Like, share, comment, comment, do whatever
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Hell, you want to send this to you know
your government officials and tell them hey,
you know this guy's bad mouthing us.
Oh, we better blacklist them.
Go ahead and do that.
Okay, seriously, like, just don't really
care.
Send out your friends, send it to your
family, send it out to your co-workers,
tell them about it and ask them maybe maybe
your home country.
Maybe Mexico needs to make a better deal.
(25:49):
Maybe you're from Brazil.
You need to make a deal.
Or maybe you're from one of our eastern
population bases like Germany, Finland,
Spain, Pakistan, India, South Africa.
We all know you got listeners listening
into this podcast from all those nations.
Maybe you guys need to work a deal, just
like ours that we're talking about.
This can apply to any of your nations.
(26:10):
You may not have as many cards as us, but
find the card that's right and play it on
the table, because right now the two
largest economies battling it out and
whoever wins on the winning table for the
next century is going to have more cards in
their deck than the one that doesn't make
it go.
And after that, stop by the website, read
some of the reviews, check out some of the
ratings.
Go to the Corporate Links website page.
(26:31):
Big or small, we have them all Car
companies from around the globe, all
available on one direct location.
That is the AutoLooks.net Corporate Links
website tab at the top of the page.
At autolooks.net, the AutoLooks Podcast is
brought to you by Ecomm Entertainment Group
and distributed by Podbean.com.
If you'd like to get in touch with us, send
us an email over email@autolooks.net
So from myself, Everett Jay, the AutoLooks.net
(26:51):
website, Ecomm Entertainment Group and
Podbean.com, for getting us out on all those
major streaming sites.
Strap yourself in for this one fun wild
ride that the AutoLooks podcast and this
trade deal is going to take you on.
Thank you.