FCA: We Know You Love That Old Ram 1500, So We'll Keep It Around Awhile

Steph Willems
by Steph Willems

The next-generation Ram 1500 is still expected to trundle out of Sterling Heights in January of 2018, but don’t expect a familiar face to go away just yet.

As it readies a new full-sizer to better challenge Ford and General Motors, Fiat Chrysler Automobiles plans to keep the old Ram 1500 in production for the 2018 and 2019 model years, Automotive News reports.

FCA chief financial officer Richard Palmer confirmed the continued co-production last week.

The something old, something new strategy has everything to do with fleet purchases, Palmer claims. By keeping both models rolling off their respective assembly lines, FCA can tempt fleet customers with a cheaper workhorse while retail customers go after the upgraded version.

“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,” Palmer said in a conference call.

Appearing early in 2018 as a 2019 model, the next-generation Ram 1500 boasts all-steel construction and a host of technological improvements.

According to Automotive News, FCA’s Warren, Michigan, and Saltillo, Mexico, truck plants should produce 265,000 2018 and 2019 previous-generation Rams. The bulk of the production — about 200,000 units — should come in 2018, sources claim. Meanwhile, FCA expects to build 325,000 next-generation Rams that year.

Squeezing as much sales mileage out of old models is an FCA specialty. Having earlier destined it to immediate extinction, the automaker decided to continue building the lower-cost Dodge Grand Caravan alongside the new Chrysler Pacifica in Windsor, Ontario.

[Image: Fiat Chrysler Automobiles]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
5 of 71 comments
  • Big Al from Oz Big Al from Oz on Oct 31, 2016

    A big part of the Ram's resurgence was the fact that FCA read the US pickup consumer well. FCA realised that 75% of pickups are just cars, so they built a car. FCA also realised the stigma attached to the "big rig" mentality to justify the ownership of a full size half ton. So, we have the Ram in its current guise. I really do find those I deem as "the 10%'ers" who's constant attempts to glorify full size ownership with half baked and illogical reasoning. A few full size picks are used to "work" as a toy/camper, ets hauler.

    • Lou_BC Lou_BC on Nov 01, 2016

      "I really do find BAFO's I deem as “the 10%’ers” who’s constant attempts to glorify small diesel truck ownership with half baked and illogical reasoning." There fixed it for you. Yes. You don't get it. We figured that out a few years ago. People in the USA and Canada like full sized vehicles especially trucks. You feel that anyone that disagrees with you or does not see your way is illogical. Wow, you are the Donald Trump of pickup trucks.

  • Seanx37 Seanx37 on Oct 31, 2016

    Mixed feelings about this. First, it is sad that FCA doesn't think it will actually sell the trucks that they are spending billions developing and billions more updating the Sterling Heights plant. BUT. I live in South Warren. The fact that the Mound truck plant will be open for a few more years is great. A lot of people around here depend on that place. Including my next door neighbor

  • Jthorner Jthorner on Oct 31, 2016

    GM has run this play many times over the years. In 2016, for example, fleet buyers could still buy brand new previous generation Malibus while retail customers got the all new version.

  • JEFFSHADOW JEFFSHADOW on Nov 01, 2016

    I leased a 2016 Ram 1500 SLT Big Horn in June of this year. In June 0f 2019 I will lease the new 2019 Ram! Always a 36-month lease, never 39. The extra three months mean you pay a full year's registration to drive a vehicle for 90 days. Great truck, and I have always preferred GMC only...

Next