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  • William Maley
    William Maley

    Ram Trucks Tired Of Being Number Three, Reconsiders Production In Mexico

      On second thought, maybe we'll keep building trucks in Mexico

    Earlier this year, Fiat Chrysler Automobiles announced that it would be moving production of the next-generation Ram HD trucks from Saltillo, Mexico to the Warren Truck Plant in Michigan. This was due to the U.S. Government threatening steep tariffs on Mexican-made vehicles. Saltillo would continue producing global commercial vehicles. But with a new Free Trade Agreement between the U.S., Canada, and Mexico; FCA is having second thoughts about moving production.

    CEO Mike Manley told Reuters that he wants Ram Trucks to move out of third place with truck sales.

    “We need to get ourselves into second” place. Frankly, I don’t care which of the two I take share from,” he said.

    Thus, he is reconsidering the decision made by his predecessor and keep some Ram HD production in Mexico.

    “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. In my opinion it will be required. We are gaining share. Obviously I am looking for that to continue, but it’s an incredibly competitive segment,” said Manley.

    The new agreement between the two countries calls for no import cap, so long as the vehicle meets a certain amount of content from various countries.

    Source: Reuters

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    May the Truck wars escallate. Seems this is well founded as a story on the Alliance of automobile manufactures finds the following:

    https://autoalliance.org/economy/consumer-choice/

    To Quote:

    "In 2017, Americans continued to favor light trucks (SUVs, vans and pickups). Nationwide, 65% of total new vehicle sales were light trucks, compared to 35% for new cars. In 47 states more than half of new vehicle sales were light trucks.

    Auto buyers shopping for new vehicles now have more energy-efficient vehicles to choose from than ever. More than 490 models on sale today achieve high mileage (30+ MPG highway), including 43 hybrids, 19 plug-in hybrids, and 30 electric vehicles. And, traditional gasoline engines are getting increasingly fuel efficient as a result of new technologies."

    Great charts to see how it breaks down by state and they have it broken out auto type too.

    Seems Washington state is #1 in Hybrid auto sales and #3 in EVs.

    image.png

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    You can have 10 factories, people have to want to buy a Ram over a Ford or Chevy/GMC.  Now if Mexico allows them to build the truck cheaper (although GM builds trucks there too) and they can undercut on price, maybe they win sales.  But at that point, why not lobby to get the chicken tax removed and have these made in China and have $20,000 Ram trucks to undercut the F150 by $10,000.  Then you'll see Ram rise up the sales chart.

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    2 hours ago, smk4565 said:

    Then you'll see Ram rise up the sales chart.

    Ram sales have risen every year since the economy cratered in '09 and they moved 177K.
    500,000 were sold in 2017. You've already seen Ram 'rising up the sales chart'.

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    Just wait for the next recession to possibly knock RAM into fourth place.  There is a reason that Ford is #1 and GM is #2.

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    10 hours ago, riviera74 said:

    Just wait for the next recession to possibly knock RAM into fourth place.  There is a reason that Ford is #1 and GM is #2.

    So your saying Toyota will replace Ram as #3 in NA?

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    1 hour ago, dfelt said:

    So your saying Toyota will replace Ram as #3 in NA?

    It is possible.  Although you can say that truck loyalty will tend to maintain the status quo.

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    1 hour ago, dfelt said:

    So your saying Toyota will replace Ram as #3 in NA?

    Not Toyota, but GMC.  GMC's annual sales are very close to Ram.  (I'm not lumping Chevy and GMC together). 

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    23 minutes ago, Robert Hall said:

    Not Toyota, but GMC.  GMC's annual sales are very close to Ram.  (I'm not lumping Chevy and GMC together). 

    Oh damn, I never even thought of that. 

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    2 minutes ago, ccap41 said:

    Oh damn, I never even thought of that. 

    The original article isn't clear on whether they are lumping Chevy and GMC together or not.

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    8 minutes ago, Robert Hall said:

    The original article isn't clear on whether they are lumping Chevy and GMC together or not.

     

    Truck Sales.PNG

    The Tundra is closer to catching the Sierra than the Sierra is to the Ram. 

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    9 minutes ago, ccap41 said:

     

    Truck Sales.PNG

    The Tundra is closer to catching the Sierra than the Sierra is to the Ram. 

    That chart will be interesting to see in a year after the new generation of GMs and Rams have been on sale for a while..

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    Toyota should be much more competitive than they are in full size trucks.  With their resources they should be able to spend away and bury Ram, just like their car line has put FCA and Ford's car lines out of business.  It is embarrassing how old the Tacoma and Tundra are, when those 2 should have all new versions every 6 years with hybrids and best in class quality, reliability and fuel economy.

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    6 minutes ago, smk4565 said:

    Toyota should be much more competitive than they are in full size trucks.  With their resources they should be able to spend away and bury Ram, just like their car line has put FCA and Ford's car lines out of business.  It is embarrassing how old the Tacoma and Tundra are, when those 2 should have all new versions every 6 years with hybrids and best in class quality, reliability and fuel economy.

    Truck buyers, real ones, are too smart to let Toyota tick any further upward.  They are some of the last remaining loyal American vehicle buyers, and for that, this country could learn a lesson or two.  Buy American!

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    2 hours ago, ocnblu said:

    Truck buyers, real ones, are too smart to let Toyota tick any further upward.  They are some of the last remaining loyal American vehicle buyers, and for that, this country could learn a lesson or two.  Buy American!

    The problem is is that car buyers have had little loyalty to the domestics since the 1980s.  CA most of all have bought into buying Japanese for nearly 40 years now; the rest of the USA followed suit about 10-15 years later depending on location.  It is even worse with luxury vehicles.

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    2 hours ago, ocnblu said:

    Truck buyers, real ones, are too smart to let Toyota tick any further upward.  They are some of the last remaining loyal American vehicle buyers, and for that, this country could learn a lesson or two.  Buy American!

    So if Toyota made a truck better, more capable, more reliable than the F150, and the Tundra which is made in the USA, then American truck buyers would rather buy an inferior truck?   Or buy a Mexican made Ram who's profits go to Italy?  

    The Tundra is the most dated, least competitive truck in the full size pick up segment.  Which is really inexcusable for a company that has the most money and resource.

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    Tundra's story has nothing to do with, for example; how old it's frame is. It's not the 'now', it's that toyota has been constantly trying (I assume) to reach not only competitive grade, but to entice buyers of other brands, but just keeps failing. It basically sells to toyota loyalists, I believe, and not many of them. We've heard excuse after excuse, but the bottom line can only be either of 2 things; 1. toyotoa doesn't care/spend enough, or (more likely) 2. they just don't get it.

    As far as 'best in class reliability & quality'- those days are over for the brand.

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    13 hours ago, smk4565 said:

    Toyota should be much more competitive than they are in full size trucks.  With their resources they should be able to spend away and bury Ram, just like their car line has put FCA and Ford's car lines out of business.  It is embarrassing how old the Tacoma and Tundra are, when those 2 should have all new versions every 6 years with hybrids and best in class quality, reliability and fuel economy.

    I am surprised they aren't more competitive than they are. I don't think they could ever get a foothold to bury any of the D3 though. Even if they made the best product, hands down, it would still be 4th place, imo. It would sell better but I just can't see a Japanese truck maker taking any of the D3 down. 

    8 hours ago, balthazar said:

    As far as 'best in class reliability & quality'- those days are over for the brand.

    People still believe it though. That's all that really matters. I talk to people looking at vehicles all the time who aren't enthusiasts at all and Toyota and Honda are always on the top of their lists without even knowing vehicle names. 

    My brother bought a CR-V last weekend because his wife's family had good luck with Hondas in the past. 

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    Toyota basically put the Detroit 3’s sedan business out of business and they did that with 30 years of dedication to the Camry and whether it was product or branding or whatever, the Camry is the sedan champion.  If they had that focus on the Tundra I think they could have the 3rd best selling full size truck easily.  The Tacoma was the #1 selling mid size truck for a while and maybe still is and that thing is way dated too.

    Finger of Shame to Toyota for not making those trucks better.  FCA doesn’t have excess money to make a new Charger/300 so they have to let those dated products stick around.  Toytota has the money, they have $30 or 40 billion in cash, a huge revenue stream, huge profits, etc

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    I would assume given the market shift to CUVs, SUVs and trucks away from sedans Toyota will invest more in new trucks and SUVs.  

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    6 hours ago, Robert Hall said:

    I would assume given the market shift to CUVs, SUVs and trucks away from sedans Toyota will invest more in new trucks and SUVs.  

    Toyota might, but it will probably be a lot harder now. . . . unless they put the focus on the Tacoma rather than the Tundra.

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