Why Ram Can’t Build a Full-Size Truck for Under $40K?

If you’ve been wondering why there’s no stripped-down Ram 1500 (DT) you can drive off the lot for under $40,000 anymore, you’re not alone. Truck prices have climbed so high that many of us assumed Ram could simply create a “bare bones” version of their modern DT pickups to fill the void left by the now-discontinued Classic (DS).

But Ram CEO Tim Kuniskis recently shut down that idea in plain terms at a media event in Auburn Hills, Michigan. His message? That era is gone — and it’s not coming back.

“Those Days Are Gone” –

When asked why Ram can’t simply build a no-frills $40,000 truck, Kuniskis replied bluntly:

“Well, those days are gone. Stop comparing those to things pre-COVID in any product in any industry. You can’t do it, right? So, getting back to a $40,000 price point average, it’s impossible. You can’t do it.”

He’s referring to the good old days when a Ram 1500 Classic could be had for around $36,000. According to TrueCar.com, the 2024 Classic averaged just over $36,000 in transaction price (with incentives) — a solid value for a full-size truck.

But that truck’s gone, and even Ram’s most affordable current options — the V6 Warlock and Black Express models — start well above that.

“The Black Express is going to be a killer package in that space. And when we get to the point where you can do a Black Express with the 5.7-liter HEMI® and that price point — [we hit a] sweet spot,” Kuniskis added.

Just not that sweet. Not $40,000-sweet.

It’s Not Just About Stripping Features – 

One of the biggest misconceptions is that if Ram just dropped the power windows, touchscreen, or electronic locks, they’d magically hit a sub-$40K price tag. Kuniskis says it doesn’t work that way.

“Get a Tradesman today, and you tell me what I am going to strip out. What am I going to strip out of a Tradesman today to get to that price point? I’m going to save $1,000, maybe? I can’t get to $40,000. I can’t. I just can’t do it. I’d love to.”

And he’s right. The Tradesman — Ram’s most basic full-size pickup — a Quad Cab with a 6-foot, 4-inch box and 4×2 configuration, featuring the 3.6-liter Pentastar V6 with eTorque mild-hybrid system, already starts at $40,275 before destination fees. If you think crank windows and no A/C would change that, think again. The cost savings are minimal, and customer demand for truly stripped-down trucks just isn’t there. Ford learned that the hard way and dropped their base manual models years ago.

Safety and Emissions Requirements Add Up – 

One of the biggest reasons why a sub-$40,000 full-size truck is no longer realistic is the amount of safety and emissions equipment that’s now federally mandated. Modern trucks, even in their most basic forms, must come equipped with backup cameras, airbags, tire pressure monitoring systems, LATCH child seat anchors, and rear seatbelt reminders. Even the sound alerts for electric or hybrid vehicles are required by law. These aren’t optional features — automakers are required to include them on every vehicle they sell in the U.S., and that adds cost right out of the gate.

On the emissions side, regulations have only become tighter over the decades, with federal laws like Corporate Average Fuel Economy (CAFE) pushing automakers to make their vehicles more fuel-efficient. Even if the current U.S. administration is cutting policies in favor of automakers, administrations change. Additionally, it is essential to note that the Ram 1500 is a global product, which must conform to various regulations and emissions standards in different markets.

That has led to the adoption of expensive technologies, such as catalytic converters, oxygen sensors, EGR systems, and computer-controlled engine management. To meet fuel economy standards, manufacturers have also made engineering decisions — such as using turbochargers, cylinder deactivation, multi-speed transmissions, lightweight aluminum components, and even hybrid systems — that are not federally mandated but necessary to comply with fuel economy targets.

While these changes are great for reducing pollution and increasing fuel economy, they’re not cheap. Each one adds complexity, cost, and in many cases, weight savings that come at a higher price. All of that gets baked into the cost of even the most basic pickup truck on the lot today.

Not Corporate Greed, Just Reality – 

There’s a popular idea floating around that this is all corporate greed — that automakers just don’t want to build affordable trucks. But Kuniskis explained it’s not about greed — it’s basic economics.

“Because I’d lose money,” he said plainly.

Even with a 10% margin on vehicle sales, the cost of building a truck that meets today’s safety and emissions standards makes a sub-$40,000 price tag impossible.

If Ram could build a no-frills truck and make money doing it, they absolutely would. Volume matters, and automakers aren’t just chasing high-dollar buyers — they still want fleet and work truck sales, too.

So What’s Next? – 

Until a mid-size pickup takes the baton, Kuniskis says Ram is doing what it can to bring value to buyers with lower-cost variants, such as the V6 Warlock and Express. But they’re never going to touch the price point of the old Classic again.

“Did we lose volume? Yes,” Kuniskis admitted. “I lost a lot more before these moves, but I think we will crawl back some of them. Not all of them. Because I’ll never get back to $40,000. Until I get a mid-size truck.”

The truck market has changed. The $40,000 full-size truck? It’s history. And even Ram’s CEO says there’s no going back.