Stellantis NV is considering reintroducing a more budget-friendly version of its Ram 1500 pickup truck in the U.S., according to Chief Financial Officer Doug Ostermann. The plan comes after the phasing out of the “Ram Classic” model last year, which led to a significant drop in sales.
“We need to introduce kind of a lower-end trim of the new pickup to fill that gap,” Ostermann stated at a recent Wolfe Research conference, while also cautioning that the reintroduction would not be immediate.
Ram’s U.S. pickup sales, a major profit generator for the company, decreased by 16% last year. This decline followed the decision by former CEO Carlos Tavares to discontinue the entry-level model. Consequently, the company had to lay off approximately 1,100 union workers at the Michigan factory where the Ram Classic was produced and shift some production to Mexico. Overall vehicle deliveries saw a 15% drop in 2024, contributing to a decline in earnings.
Stellantis has been actively working to regain its market share in the U.S. through various strategies. These include price reductions, enhanced incentives, and addressing product gaps that resulted from a period of limited investment under Tavares’ leadership. The automaker, along with its competitors, has also faced pressure from the Trump administration to increase domestic manufacturing.
Ostermann added that the company has been moving more parts supplies across the Canadian and Mexican borders to the U.S., in order to minimize the impact of potential new tariffs. He had previously mentioned that some Ram production might be relocated from Mexico to Detroit if tariffs were imposed.
The company is currently searching for a new CEO, following Tavares’ departure in December. Last month, Stellantis indicated that it anticipates only modest profitability this year, without taking into account any potential costs related to tariffs.
