Ram CEO ‘desperately’ wants a smaller compact truck

Ram has put off re-entering the booming smaller truck market in the U.S., even as competitors like Toyota, Ford, and GM rake in sales.

Driving the news: However, in a recent interview with Road & Track, Kuniskis said it would be crucial to introduce cheaper options with the departure of the relatively affordable Ram Classic.

Looking back: Kuniskis recently came back to lead Ram in December shortly after retiring last year, prompted by the resignation of Stellantis chief Carlos Tavares.

• Ram’s previous CEO, Christine Feuell (now in charge of Chrysler), had also discussed the return of a mid-size pickup last November, just before Kuniskis’ return.

• However, other than promising the vehicle “will be brought to market,” she offered no additional details, leaving the timing of the release unknown.

• Kuniskis’ comments suggest Ram is not only still interested in the project under its new leadership but is also making it a priority.

Zooming in: While Ram has focused on bigger pickups in recent years, consumers have been opting for smaller, cheaper models due to inflated car prices.

• According to Charlie Chesbrough, senior economist at Cox Automotive, compact cars and small to mid-size SUVs saw noticeable increases in market share throughout last year.

• On the other hand, full-size vehicles have seen declining demand following the COVID-19 pandemic, despite their popularity over the preceding decade.

Why it matters: With customer preference shifting away from bigger models, Ram’s absence outside of the full-size segments limits its ability to compete with its rivals.

• Competitors, both foreign and domestic, are seeing strong success with compact entries like the Ford Maverick and Hyundai Santa Cruz, eating into Stellantis’ waning market share.

• Ram dealers are also hindered by the lack of a more affordable option, having few strategies to entice price-weary customers away from other franchises.

Looking ahead: While Kuniskis’ comments suggest that Ram is looking to plug the gap in its offerings as fast as possible, it may not have to look far.

• In South America, the automaker already carries smaller models, ranging from the mid-size Ram 1200 to the compact Ram Rampage, the latter of which has been especially successful.

• While the company would need to make adjustments for the North American market, it may be able to use its models south of the border to fast-track production.

Bottom line: Regardless of whether Ram designs a new model or expands the market for one of its non-U.S. entries, Kuniskis’ remarks have made it clear that diversifying the brand’s product mix is top of mind.

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