Ram Trucks is set to revolutionize the automotive industry by introducing an unprecedented warranty program for its 2026 vehicle lineup. The Stellantis-owned brand is launching an 18-month turnaround plan, with the comprehensive warranty being a key component.
The New Warranty Program
The warranty covers critical components including the engine, transmission, transfer case, driveshafts, differentials, and axles for 10 years or 100,000 miles, whichever comes first. This significantly surpasses Ram’s current five-year or 60,000-mile warranty, which is the standard in the full-size pickup truck segment.
Industry Context
The move comes as vehicles, particularly pickup trucks, have become increasingly expensive. This has led to longer financing periods, often extending beyond the typical warranty duration. According to Edmunds.com, 84-month loans for new-car buyers hit a record high of 19.8% in the first quarter, with 67.4% of new-vehicle financing loans ranging between 60 and 75 months.
Rationale Behind the Extended Warranty
Ram CEO Tim Kuniskis explained that 85% of truck buyers finance their purchases for seven years or more and typically keep their vehicles for 12 years. “No one has changed the warranty,” Kuniskis noted. “They’re investing more and more money in your brand, but you’re not investing more to protect them.”
Competitive Landscape
The new warranty is expected to give Ram a competitive edge in the market. Currently, major competitors like Ford Motor, General Motors’ GMC and Chevrolet brands, and Toyota Motor offer five years or 60,000 miles limited powertrain warranties on their gas-powered full-size pickup trucks. Some diesel models may have better warranties, but the overall standard remains lower than Ram’s new offer.
Potential Impact and Future Plans
Kuniskis believes the extended warranty will help retain existing customers, attract new ones, and potentially win back former Ram owners. “We think this is going to be a significant move in the right direction,” he said, noting that the brand has seen a 38% sales decline since its peak in 2019.
The warranty is limited to the original owner of 2026 model-year Ram trucks and vans, excluding fleet purchases and the Ram Promaster electric van. While longer warranties carry inherent risks, Kuniskis is confident that the perceived value to customers outweighs the potential increased costs for the company.
Industry Precedent
It’s worth noting that a 10-year/100,000-mile warranty isn’t unprecedented in the auto industry. Kia, for example, offers a similar warranty across its new vehicle lineup. Ram’s decision brings this level of commitment to the full-size pickup truck segment.
The success of this new warranty program could have significant implications for the automotive industry, potentially setting a new standard for warranty offerings in the competitive full-size pickup truck market.
