Question-and-Answer Session
Operator
[Operator Instructions]. Our first question comes from Rich Kwas with Wachovia.
Richard Kwas
Hi good morning everyone.
Enoch Jen
Good morning Rich.
Connie Hamblin
Good morning.
Richard Kwas
Enoch, in terms of the guidance for the fourth quarter, it looks like in the third quarter you underperformed the market in North America, outperformed the market in Europe, should we assume that for the fourth quarter as well meaning that you are looking at 19% decline in overall production in North America shipment performance be worse than that in North America and then better in Europe and Asia?
Enoch Jen
I think we would expect that trend to continue, Rich. As we pointed out in our comments, as you and the other analysts are aware we have a lot of volumes tied to the pickup and SUV segment of the North American market. So, you are correct in that we’re underperforming the overall North American market, but our results are somewhere in between the overall market and the pickup in SUV segment and then we also expect to continue to outperform the production levels overseas.
Richard Kwas
And could you remind us on the mix between Europe and North America in terms of average selling price if there is a meaningful deviation from the overall average?
Enoch Jen
There is not a meaningful difference, the one-time when we first started selling into Europe virtually all the mirrors we were selling were base mirror sub assembly, but today we have featured mirrors in Europe and Japan, and Korea, as well as in North America.
Richard Kwas
Okay, great. Thanks so much.
Enoch Jen
Welcome.
Operator
And our next question comes from David Leiker with Robert Baird.
David Leiker
Good morning.
Enoch Jen
Good morning, David.
Connie Hamblin
Good morning.
David Leiker
Trying to figure out which question to ask. If you look at the expense side of the equation, the ER&D and SG&A, both of those you are talking about 15% to 20% growth in the second half of the year and historically you’ve made comments that you don’t move that revenue that you continue to invest for future business, yet you pulled that guidance down to roughly around 11% or 12% here in the second half of the year. Just talk through that a little bit that had change in philosophy of what you have done in the past?
Steve Dykman
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