Ram Trucks is planning to build the current Ram 1500 well into 2019, even after it launches a redesigned model in 2018.
Sources tell Automotive News the decision comes down to Fiat Chrysler Automobiles making a play for fleet customers by offering a lower-priced model in the form of the last-generation 1500. This move also allows dealers to have ample supplies of trucks - both old and new.
"Going into 2018, having more pickup capacity will allow us also to satisfy the fleet customers' demand on pickup, which we struggle to do today because we favor retail in the U.S. and Canadian volume, which have higher margins," said FCA CFO Richard Palmer on a conference call last week.
Sources say production of the current-generation Ram 1500 will continue at FCA's Warren Truck Assembly in Michigan and Saltillo, Mexico till 2019. The plan is for 200,000 trucks to be built in 2018, with another 65,000 built for 2019.
An FCA spokesman declined to comment.
Source: Automotive News (Subscription Required)