Stellantis plans to reintroduce affordable Ram 1500 pickup

Stellantis NV is considering bringing back a more affordable version of its Ram 1500 pickup truck to the US market. Chief Financial Officer Doug Ostermann indicated that the company believes there is still demand for a lower-end trim after the stripped-down "Ram Classic" was discontinued last year. Ostermann stated at a conference that introducing this budget-friendly option is necessary to fill a market gap. However, he warned that this new model will not be available immediately. This move would reverse the decision made by the former CEO, Carlos Tavares, to stop producing the entry-level model. In the previous year, Stellantis laid off about 1,100 workers at the Michigan factory where the Ram Classic was built. They also shifted some production to Mexico. Ram's pickup sales dropped by 16% last year, contributing to a general decline in vehicle deliveries and earnings. To regain market share, Stellantis has been cutting prices and boosting incentives. They are under pressure from the US government to bring more manufacturing back to the country. Ostermann mentioned that the company is moving more supplies across the borders with Canada and Mexico to lessen the impact of potential tariffs. Stellantis is currently seeking a new CEO after Tavares was ousted in December. The company recently stated that it expects weak profitability this year, especially if further tariff costs arise.