Ram’s U.S. pickup sales, a major profit driver for the company, slid 16% last year. (Nic Antaya/Bloomberg News)
Stellantis NV believes there is still demand for an affordable version of its Ram 1500 pickup truck in the U.S. market after the stripped-down “Ram Classic” ceased production last year, Chief Financial Officer Doug Ostermann said.
“We need to introduce kind of a lower-end trim of the new pickup to fill that gap,” Ostermann said at a Wolfe Research conference on March 18, cautioning that it would not come to market “immediately.”
Returning a more affordable option for its top-selling truck would reverse a decision last year by former CEO Carlos Tavares to stop making the entry-level model. The maker of Jeep SUVs and Dodge muscle cars eventually laid off some 1,100 union workers at the Michigan factory that made the Ram Classic, while shifting some production to Mexico.
Ram’s U.S. pickup sales, a major profit driver for the company, slid 16% last year. Overall vehicle deliveries fell 15% in 2024, contributing to a plunge in earnings. The company has been trying to regain share in its key U.S. market by cutting prices, boosting incentives and filling out gaps in its product lineup, which had been starved for investment under Tavares.
The carmaker and its rivals have also come under pressure from the Trump administration to bring more manufacturing back to the U.S. Ostermann said the company has moved additional parts supplies over Canada and Mexico’s borders with the U.S. to mitigate the impact of new potential tariffs. He has previously said the company could shift some Ram production from Mexico to Detroit should the levies be imposed.
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The group is still searching for a new CEO following the ouster of Tavares in December. Stellantis said last month it expected only lackluster profitability this year, without taking into account potential additional tariff costs.
