With Ram truck sales surging, FCA may continue production in Mexico

[redriderbob]

As a salesman on the frontline, I really really realllllly don't like the idea of selling these Classics any longer. As it currently stands, it is tough selling the 2018 DS Rams next to the 19 DT Rams, let alone the Classic 19s now arriving. Unless they reopen the trim levels on DS, it's going to be a tough go for us reps.

Here in Southeastern Michigan we have all-new 2019 Ram 1500 Big Horns every where, because of the cheap lease deals on them. I haven't seen to many Ram 1500 Classic models on the road.

With the Canadian Ram 1500 Classic getting recent upgrades, I expect the Ram U.S. Classics to get similar updates.

https://moparinsiders.com/the-new-canada-only-2019-ram-1500-classic-express-night-edition/

 

[TripleT]

Then maybe it time for it be retired

Yeah that is a weird move....

On December 31, 2015 the $1 US Dollar was equal to $1.39 Canadian. Now $1 US Dollar is equal to $1.31 Canadian.

Dec 31 is basically 2016... Yes 2015 there was a big movement and often companies cannot adapt until the next year

 

[BobbiBigWheels]

Dec 31 is basically 2016... Yes 2015 there was a big movement and often companies cannot adapt until the next year

I totally get your points TripleT, and I don't for a second think my rationale is reasonable. I do know my market though, and Caravans aren't selling because they are the same product (in the consumer's eye) as they have been for a decade, and they are $5,000 more than they were 2.5-3 years ago, when FCA Canada forced "$19,998 Grand Caravan" advertising down the throats of every citizen. They can't recoup from that price point, and as such, the vans aren't selling. I use CVP as an example, however, all trim levels are excessively more expensive than they were in years prior.

 

[TripleT]

I totally get your points TripleT, and I don't for a second think my rationale is reasonable. I do know my market though, and Caravans aren't selling because they are the same product (in the consumer's eye) as they have been for a decade, and they are $5,000 more than they were 2.5-3 years ago, when FCA Canada forced "$19,998 Grand Caravan" advertising down the throats of every citizen. They can't recoup from that price point, and as such, the vans aren't selling. I use CVP as an example, however, all trim levels are excessively more expensive than they were in years prior.

It’s a old product that in every way is inferior to the new model, no a little a lot. As it cost to produce has risen it value proposition is deminishing. I get it which means the very valuable capacity needs something new. Time for the Portal

 

[Rustydodge]

You also have to remember, to move all the Saltillo tooling to Warren and run the truck for only three years will be crazy expensive. Keeping the HD in Mexico until the 2022 Ram HD makes it debut in 2021, makes more sense. Then Saltillo will update their plant to build the new mid-size Ram truck and metric truck Fiat Fullback. Both will be global trucks. The 2022 Ram HD will finally be on the 5th Generation Ram cabs and updated platforms.

There is no doubt in my mind they will run a full 2019 model year of Ram 1500 Classics, as well as a short run of 2020 Ram 1500 Classics before shutting Warren down before a much needed update. Warren Truck is the oldest and most outdated plant FCA US owns. They will inject $1.2 billion into the plant, to revamp the plant to build the 2021 Wagoneer and Grand Wagoneer (WS) and Durango (SD). Then Ram HD can join them, sharing more of their parts compared to the 4th generation based 2019 update trucks. This timeline would give Warren Truck the time to make updates and keep both Saltillo and Warren Truck running strong till the switch overs.

This is 100% logical. Any chance in your opinion we'll see a 5th Ram HD model from Warren sold along side "classic" HD built in Saltillo, similar to what they did with the 1500s in SHAP and Warren? I doubt it, since the HD will be updated to look more "5th gen like" already, but it would be another way to eliminate capacity restraints.