(Bloomberg) – Stellantis NV believes its RAM 1500 pickup truck will still require an affordable version after production of the “RAM Classic” that was spun off last year.
“We need to introduce the low-end trim of the new pickup to fill that gap,” Osterman said at a Wolf Research Conference on Tuesday.
Returning a better option for its top-tier sales truck will revoke the decision of former CEO Carlos Tavares to stop making entry-level models. The maker of Jeep and Dodge muscle cars ended up laying off about 1,100 union workers at a Michigan plant that produced the RAM classic while shifting some production to Mexico.
U.S. pickup sales of RAM were the company’s main profit driver, gliding 16% last year. Overall vehicle delivery fell by 15% in 2024, causing revenue to plummet. The company has been trying to regain its share of its major market by lowering prices, increasing incentives and filling gaps in its lineup, which has invested under Tavares.
The automaker and its competitors are also under pressure from the Trump administration to bring more manufacturing back to the United States. Ostermann said the company has shifted supply of other parts on the Canadian and Mexican border with the United States to mitigate the impact of potential tariffs. He had previously said that if taxes were imposed, the company could transfer some RAM production from Mexico to Detroit.
The group is still looking for a new CEO after the removal of Tavarez in December. Stellantis said last month it expected only profitability to fall this year without taking into account the potential for further tariffs.
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