Ram brand may enter heavy-duty 18-wheeler market
2007 Dodge Ram BFT Concept - Click above for high-res image gallery
In addition to the passing note about considering a unibody replacement for the slow-selling Dodge Dakota, Ram CEO Fred Diaz said (with conviction...!) that they are strongly considering entering the heavy-duty 18-wheeler market with the Ram brand.
Interesting, no? The consumer-grade pickup that popularized the big rig styling on a smaller scale might make the jump up the ranks and into the heavy-hauler market. In the past, Dodge has teamed up with both Sterling and Freightliner – both of which are big players in the large truck marketplace – and the Ram brand is sure to keep up its current partnership with heavy truck engine maker Cummins. In other words, it might not be as big a leap as you may at first think to see a Ram-badged 18-wheeler rolling down a highway near you within the next few years.
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Reader Comments (Page 1 of 2)
fixitfixitstop 2:46PM (11/04/2009)
Sterling and Freightliner were both owned by Daimler when Daimler owned Chrysler. I think the use of the phrase "teaming up" in the article may mislead some to believe that there was a partnership involved.
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info 3:12PM (11/04/2009)
Daimler does own Freightliner and Sterling. Considering how competitive the market is, why would Daimler help Chrysler to add to their competition?
fixitfixitstop 3:44PM (11/04/2009)
"why would Daimler help Chrysler to add to their competition?"
They wouldn't. That's obvious. I don't understand your point.
thepirateeye 4:33PM (11/04/2009)
Daimler STILL owns Sterling, Freightliner and Western Star heavy truck brands. They are discontinuing Sterling this year. This is a really, really odd time to try and enter the heavy truck market. All of the industry's major players are cutting back production capacity and consolidating brands. On top of that, heavy truck sales are at the lowest level in over a decade.
You can get more detailed information at www.ibisworld.com (report #33612)
stealthebeatles 2:48PM (11/04/2009)
This would be the ONLY thing that could justify making Ram it's own brand. Otherwise, it is just a stupid move that will add unnecessary costs.
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Jared 2:59PM (11/04/2009)
Let's see. The current 18-wheeler market is fiercely competitive. The existing manufacturers have great customer loyalty. The customers require impressive reliability. It will take billions to enter the market and years before they break even. Fiat/Chrysler is awash in debt and low in cash. Their car business in the US needs huge investments in cash and new products right now.
So now they want to enter the 18-wheeler market. Yeah. There's a plan.
A plan for dissolution. What in the world are they smoking?
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jamie 3:06PM (11/04/2009)
STOP THE PRESSES!!!
"Chrysler broke even in September
Despite terrible sales, the troubled U.S. automaker ended first post-bankruptcy quarter with more cash than it had at the start of it."
"Marchionne said Chrysler had $5.7 billion on hand at the end of September, up from $4 billion at the end of June. He did not detail where the increase in cash came from."
jamie 3:08PM (11/04/2009)
Oh poop. :(
I forgot the linky...
http://money.cnn.com/2009/11/04/news/companies/chrysler_plan/index.htm?source=yahoo_quote
Jared 3:10PM (11/04/2009)
Jamie: Ford has $23B on hand. You think $5.7B is enough to 1) operate Chrysler, 2) start a new brand - Ram, 3) refresh all the Chrysler models, and 4) start an 18-wheeler franchise? It costs about $1B just to develop a new mid-size sedan.
Nope. Not gonna happen.
jamie 3:24PM (11/04/2009)
Jared
I'll believe you when you tell me how Chrysler increased its booty from $4 billion to $5.7 billion in one quarter considering that their sales were down 32%.
Alex 3:54PM (11/04/2009)
Didn't autoblog just report on a recent study that found 18 wheeler buyers are not concerned with brands and are very open to new companies?
Hiimandy1 11:35PM (11/04/2009)
@Jamie:
Bringing in $1.7 billion in cash is very hard to do when you're not selling much. The article you linked to said they need to ship 1.65 million units, while their annual rate this year is about one million flat. In the same article, they say they expect between brake even to $500 million profit this year (these two statements don't match?), but this is EBITDA, which means no taking into account the cost of the tooling needed to make the cars. I would imagine the $1.7 came from having virtually no capital spending whatsoever between the time it exited bankruptcy and now, as they have not introduced new models (new production lines) and probably didn't do much R&D as Fiat decided what direction they were heading. Now that they have the plan out, they'll be spending a lot more to get these products designed, tested, built, and out the door, something they certainly cannot do while continuing to post sales declines. It's either increase cash or new product for them, not both.
Also, I wouldn't go anywhere near a company who says it needs to sell 1.65 million units to be profitable, currently sells 1 million, and yet expects to brake even.
jamie 3:00PM (11/04/2009)
First of all, Dodge Dakota should be looking at Toyota Tacoma as its benchmark. If sales are that bad with the Dakota now, they can only get worse with a unibody structure.
Now, I understand the unibody structure saves manufacturing expense and improves gas mileage; but adding a gas hog 18 wheeler to the mix only begs for "the stupidest idea on earth today award". Why doesn't Marchionne opt for the ready to roll Chevrolet Kodiak and GMC Topkick medium duty trucks first? Isuzu passed that deal up, so maybe Sergio can pick up the pieces on the cheap.
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jamie 3:02PM (11/04/2009)
First of all, Dodge Dakota should be looking at Toyota Tacoma as its benchmark. If sales are that bad with the Dakota now, they can only get worse with a unibody structure.
Now, I understand the unibody structure saves manufacturing expense and improves gas mileage; but adding a gas hog 18 wheeler to the mix only begs for "the stupidest idea on earth today award". Why doesn't Marchionne opt for the ready to roll Chevrolet Kodiak and GMC Topkick medium duty trucks first? Isuzu passed that deal up, so maybe Sergio can pick up the pieces on the cheap.
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Bus Rand 3:58PM (11/04/2009)
The last style change of the Durango was not an improvement (my opinion). I wouldn't be surprised if that has something to do with the sales figures. Taking away the frame would be a mistake as well. It makes for a nice mid size hauler that a uni-body would detract from. I don't understand the "it's too big" mentality though (i.e. Howard H).
I hope the interior components were drastically improved from my 2000 model. Very good drivetrain but the inside has sucked. I've replaced 3 malfunctioning door locks now, one of the power windows intermittenly fails and the glove box jammed shut the other day. Hope I don't get a ticket before I figure out how to get it open again.
Jamie, is that really you in the picture? If you look like that and can talk shop the way you do I think a few "Tim Taylor" style Neandertal grunts would be in order!
jamie 4:03PM (11/12/2009)
I am majoring in Big Business by focusing on the Big 3; and I minor in Monkey Business on the side.
Howard H. 3:31PM (11/04/2009)
I think they should rethink making class 8 trucks. The dakota has grown too big and heavy. There are full size trucks from the competition with better payload and fuel mileage ratings. Why would anyone buy a less capable truck that uses more fuel?
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Blown tranny 3:20PM (11/04/2009)
Fiat owns the Iveco corporation. A major producer of commercial trucks and diesel engines in Europe and other parts of the world. A Ram Class 8 truck would likely be a Iveco with a Ram badge stuck to it.
Problems I see are Iveco's are mostly cab over configuration which are not popular in the "18 wheeler" market in the states and Iveco engines are unknown to US buyers.
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Lee 3:40PM (11/04/2009)
Iveco do make some good large "sprinter" like vans too, so that could make some sense if they are looking to replace the current Sprinter.
DaveinClarkston 4:01PM (11/04/2009)
COE's don't sell well in the N.A. market enven at the class 5/6 range! Iveco was sold here for a time being if I remember right but it is not an easy thing to enter into a maket with long established players, even if Dodge did make tractor's (the semi kind) a long time ago.
Hino, with all the mite of Toyota behind it, has not had an easy time entering the N.A. medium duty market! they are not even close to being at their original sales forecast in place when they launched about seven years ago.
Putting a dealer network together would be a real chore as well. With Sterling shuting down recently (part of Freightliner) their good dealers have been snaped up by the competitors so it would seem to require a significant effort to put the distribution network in place.
As for purchasing the GM medium duty business there would be a lot of work there as well. And don't think for a minute that the other players in the segment are not going after all of the GM business that was left on the table!
All of the speculation is really moot as in 12 to 18 months there will be a big "For Sale" sign in front of the Auburn Hills HQ!