Question-and-Answer Session
Operator
Thank you, ladies and gentlemen we will now proceed with the analyst portion of the question and answer session. If you would like to register a question, please press the one followed by the four on your telephone. You will hear a three tone prompt to acknowledge your request. If your question has been answered and you would like to withdraw your registration, please press the one followed by the three. If you are using a speakerphone, please lift your handset before entering your request. In the interest of time, please limit your questions to one per line. One moment please for the first question. And our first question comes from the line of John Murphy from Merrill Lynch. Please proceed with your question.
John Murphy – Merrill Lynch
Good morning, given the pressure that you’re facing in North American which seems to be increasing. Is there the ability if you get a large number of buyouts to potentially accelerate the capacity cuts or maybe make incremental capacity cuts?
Fritz Henderson
Well, let me just kind of touch on that. I would say [audio interrupt].
John Murphy – Merrill Lynch
Hello?
Fritz Henderson
Whoops, somebody muted us. I’m sorry John, are you there?
John Murphy – Merrill Lynch
Yes I’m still here.
Fritz Henderson
Alright, sorry about that. Somebody walked into the conference room and muted us. I was suddenly red. Anyway, if I look at the 07 contract, it provides us with the flexibility to be able to adjust production volumes and capacity to be more in line with demand. So I would say as we look at the situation, certainly the contract is the enabler, the attrition plan, you know we don’t have a projection today as to what the take rates might be, what the savings might be but certainly we do believe that we have the capability to be able to adjust our production volumes capacity to be in line with demand.
And I think we’ve tried to, we’ve shown an ability to be able to do that. At this point trying to forecast what the acceptance rate is, what portion is capacity related versus what portion would be replaced with second tier or noncore employees, I really can’t say. We just have to see but we certainly believe that we have the capability to adjust ourselves to be in line with demand and we’re committed to doing that.
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