Ram Expands Mexico Plant as ‘Relief Valve’ for U.S. Production, Says CEO

Chrysler/Ram CEO Chris Feuell recently addressed the expansion of Stellantis’ Saltillo Truck Assembly Plant (STAP) in Mexico, describing it as a strategic “relief valve” for the Sterling Heights Assembly Plant (SHAP) in Michigan. At a Reuters event in Detroit, Feuell clarified that the decision to boost capacity in Mexico wasn’t a cost-cutting measure following Stellantis’ recent labor agreements with the United Auto Workers (UAW) union.

Feuell emphasized that the Saltillo plant, which has a strong track record in managing production complexities, was a natural choice for the expansion. “The plant in Saltillo does a really good job managing the complexity, and they’re already building pickup trucks down there,” she said, referring to the facility’s experience in manufacturing various Ram models. This expansion is intended to accommodate future production needs, especially as SHAP is expected to reach its capacity limits.

Saltillo Expansion and Its Role in Ram’s Production Strategy – 

The STAP facility has been an integral part of Stellantis’ production lineup, previously manufacturing the fourth-generation Ram 2500, 3500, 4500, and 5500 Heavy Duty models alongside the Ram 1500 Classic Regular Cab and export Crew Cab models. With production of the Ram 1500 Classic recently coming to an end, the STAP facility now has more production space to support the fifth-generation Ram 1500 models.

According to sources close to MoparInsiders.com, the expanded production at STAP will focus primarily on building the fifth-generation Ram 1500 for export markets, including the Middle East, Europe, Australia, and Latin America (especially Brazil). Brazil has become Ram’s second-largest market globally, highlighting the brand’s growing international footprint.

Why Not Expand in the U.S.? –

The decision to expand to Mexico rather than the United States raised questions, particularly concerning the nearby Warren Truck Assembly Plant (WTAP). The WTAP, situated just a few miles from SHAP, recently experienced a reduction of 1,100 employees following the discontinuation of the Ram 1500 Classic production for the U.S. and Canada. Despite this, Feuell explained that the choice wasn’t financially driven.

WTAP still operates with a single shift focused on producing the Jeep® Wagoneer and Grand Wagoneer, which share a similar architecture. However, with the plant’s current production lines streamlined to those models, expanding capacity at Saltillo was viewed as the more efficient option for handling the complexity of the Ram lineup’s needs.

Stellantis’ Strategic Moves Under Leadership Changes – 

This expansion comes at a time when Stellantis is undergoing significant leadership transitions. CEO Carlos Tavares has been working to address declining sales and profits in North America as he prepares for a planned 2026 departure. Stellantis shares have faced a challenging year, with a decline of about 44% year-to-date.

Despite this downturn, Feuell remains confident in Chrysler’s future direction. “Chrysler has a very well-funded product and technology roadmap,” she remarked during the event. This statement comes amid Tavares’ earlier comments about his readiness to cut underperforming brands in the Stellantis portfolio potentially. Feuell’s confidence in Chrysler’s positioning underscores the brand’s commitment to maintaining its presence in the market.

Ram’s Focus on Global Markets – 

Using Saltillo as a hub for export markets aligns with Stellantis’ broader strategy to leverage its global manufacturing footprint. As Ram’s sales continue to grow in regions outside of North America, including Europe, the Middle East, and Latin America, having a facility dedicated to international production helps meet demand more effectively.

The Saltillo expansion also highlights Ram’s ability to adapt to shifting market conditions while supporting its growth goals. With the SHAP facility reaching its capacity and the need for additional production space growing, expanding in Mexico allows Stellantis to maintain flexibility while supporting the brand’s increasing global demand.

Source: Reuters