Seeking to break out of its perpetual bronze-medal place on the North American podium of light truck sales, FCA might reconsider its decision to stop assembling HD trucks in Mexico.
Speaking to Reuters, Mike Manley expressed his desire to for Ram to climb up the sales charts at the expense of its competition, GM and Ford.
“We need to get ourselves into second,” Manley told Reuters. “Frankly, I don’t care which of the two I take share from.”
Them’s fightin’ words. Ram’s plan earlier this year was to line the old- and new-style Rams cheek-to-jowl on dealer lots, scooping up customers on both ends of the price spectrum like a kid scoops up Halloween candy. It didn’t really work out, with the new 2019 Ram suffering from a slow launch thanks to a myriad of issues, all of which have been covered in exhausting detail and will not be exhumed here.
In order to make as many Ram pickups as humanly possible, FCA top brass – perhaps emboldened by the USMCA deal – is apparently reconsidering January’s announcement of halting Ram heavy-duty production at a plant in Saltillo, Mexico. They’ve wised to the fact that this plant, when combined with the one in Michigan, can produce Ram trucks at an alarming pace. By not reserving the Mexico plant for “future commercial vehicles” (the corporate line back in January), truck manufacturing capacity is freed up to make large amounts of new pickups to eat into F-150 and Silverado/Sierra sales.
Buried deep in the conversation is this little nugget of information, dispensed by the head honcho himself: “With a combination of Warren and Mexico building what we call the classic truck, we have enough production to increase output next year if it’s required,” Manley said.
This is key to understanding how Ram plans to take over second spot, using a combination of the new and old Ram pickups. It also reveals that the old-style Ram, called the Classic, will be built well into 2019, a timeframe much longer than initially proposed.
By taking this approach, FCA can cover the entry-level end of the truck market with lower-priced Classic models that’ll appeal to fleet buyers and those buying them strictly for a hard day’s work. Customers shelling out big bucks for models laden with luxury and likely to only carry air in the bed will be pointed towards the new 2019 model with its big infotainment screen and football stadium-sized interior.
An approach such as this will have one of two outcomes: increased market share or an awful lot of trucks welded to dealer lots. The smart money is on the former. If Manley has his way, we won’t have to wait long to find out.