FCA may spin big SUV off next Ram 1500 and re-enter compact pickup segment
07-20-16, 06:16 PM
#1
FCA may spin big SUV off next Ram 1500 and re-enter compact pickup segment
FCA may build a large SUV based on the same platform as its Ram 1500 pickup to compete with big SUVs like the Chevrolet Tahoe.
It also might add a smaller pickup to its truck lineup so it can jump into the hot midsize pickup market.
Developing a large SUV based on the Ram platform would give Fiat Chrysler a large, profitable SUV and give the automaker a vehicle that could go head to head with General Motors' and Ford's large SUVs. A smaller Ram pickup would expand the Ram brand and give it a truck that would likely appeal to lifestyle buyers.
The platform that underpins the current Ram pickup is well-suited to for a body-on-frame SUV, Mike Manley, head of Fiat Chrysler's Jeep and Ram brands, said last month.
The automaker is developing the next-generation version of its Ram pickup, which is scheduled to go on sale in January 2018. Fiat Chrysler also is planning to move production from its plant in Warren to its plant in Sterling Heights, a move that will increase the automaker's production capacity.
"You have the opportunity with a new frame for the next-generation Ram," Manley said. "You have the opportunity to take a large SUV off of it because we already have a very, very capable frame today that is going to be upgraded."
The Ram’s coil-spring suspension makes it “one of the best handling pickup trucks,” Manley said.
Large, body-on-frame SUVs are cash cows for automakers.
But even with a lineup heavily weighted towards trucks and crossovers, the Auburn Hills automaker has been missing out on the cash flow because it lacks a large SUV based on a truck frame.
Meanwhile, GM sold a total of more than 200,000 Chevrolet Suburban, Chevrolet Tahoe, GMC Yukon and Cadillac Escalade SUVs in the U.S. last year. All four vehicles are that are all built off of the same platform and analysts estimate GM makes a profit of $10,000 or more for each large SUV sold.
"While crossovers are all anyone wants to talk about, the money is still in pickups and SUVs," said Dave Sullivan, an automotive analyst for manager of product analysis for Auto Pacific. "FCA needs to enter this segment. Fiat Chrysler "is chasing profit-driving vehicles and they are missing out on a major one, just as Ford is getting ready to launch an all-aluminum Expedition."
But while it would be based on the Ram, the SUV would not join the Ram lineup, Manley said. Instead, it would be produced for one of FCA's other brands, Jeep, Dodge or Chrysler.
Fiat Chrysler also is planning to bring back the Jeep Wagoneer nameplate in 2018 as a three-row SUV that, according to various media reports, will be built off of the Grand Cherokee platform.
Fiat Chrysler has studied the market for a midsize pickup several times in recent years and has always held back on developing a midsized truck either because the timing for such a vehicle was bad or because the company didn't have the financial muscle to develop one.
Chrysler ended production of the midsize Ram Dakota in 2011. The automaker was thinking about developing a midsize "lifestyle" pickup back in 2012 that would have been similar in function to Honda's Ridgeline but didn't move forward with the project.
Now, Manley said, Fiat Chrysler is taking another look.
The timing makes sense. General Motors brought back its Chevrolet Colorado and GMC Canyon nameplates after a several-year hiatus in 2014 and they have both been a hit, Honda just launched a redesigned version of its Ridgeline pickup and Ford, which discontinued its midsize Ranger in 2011, is widely believed to be bringing the nameplate back in 2018.
Finally, U.S. sales of the Toyota Tacoma have increased 7% so far this year and sales of the Nissan Frontier are up 29.3%.
"In terms of midsize pickup for Ram I very much believe that that’s an opportunity for the brand," Manley said. "Not just because of the success of the few competitors that have been playing in that field, but I …have been part of the history of the brand, I think it remains a great opportunity for us. But I have no definitive plans for that to announce today."
It also might add a smaller pickup to its truck lineup so it can jump into the hot midsize pickup market.
Developing a large SUV based on the Ram platform would give Fiat Chrysler a large, profitable SUV and give the automaker a vehicle that could go head to head with General Motors' and Ford's large SUVs. A smaller Ram pickup would expand the Ram brand and give it a truck that would likely appeal to lifestyle buyers.
The platform that underpins the current Ram pickup is well-suited to for a body-on-frame SUV, Mike Manley, head of Fiat Chrysler's Jeep and Ram brands, said last month.
The automaker is developing the next-generation version of its Ram pickup, which is scheduled to go on sale in January 2018. Fiat Chrysler also is planning to move production from its plant in Warren to its plant in Sterling Heights, a move that will increase the automaker's production capacity.
"You have the opportunity with a new frame for the next-generation Ram," Manley said. "You have the opportunity to take a large SUV off of it because we already have a very, very capable frame today that is going to be upgraded."
The Ram’s coil-spring suspension makes it “one of the best handling pickup trucks,” Manley said.
Large, body-on-frame SUVs are cash cows for automakers.
But even with a lineup heavily weighted towards trucks and crossovers, the Auburn Hills automaker has been missing out on the cash flow because it lacks a large SUV based on a truck frame.
Meanwhile, GM sold a total of more than 200,000 Chevrolet Suburban, Chevrolet Tahoe, GMC Yukon and Cadillac Escalade SUVs in the U.S. last year. All four vehicles are that are all built off of the same platform and analysts estimate GM makes a profit of $10,000 or more for each large SUV sold.
"While crossovers are all anyone wants to talk about, the money is still in pickups and SUVs," said Dave Sullivan, an automotive analyst for manager of product analysis for Auto Pacific. "FCA needs to enter this segment. Fiat Chrysler "is chasing profit-driving vehicles and they are missing out on a major one, just as Ford is getting ready to launch an all-aluminum Expedition."
But while it would be based on the Ram, the SUV would not join the Ram lineup, Manley said. Instead, it would be produced for one of FCA's other brands, Jeep, Dodge or Chrysler.
Fiat Chrysler also is planning to bring back the Jeep Wagoneer nameplate in 2018 as a three-row SUV that, according to various media reports, will be built off of the Grand Cherokee platform.
Fiat Chrysler has studied the market for a midsize pickup several times in recent years and has always held back on developing a midsized truck either because the timing for such a vehicle was bad or because the company didn't have the financial muscle to develop one.
Chrysler ended production of the midsize Ram Dakota in 2011. The automaker was thinking about developing a midsize "lifestyle" pickup back in 2012 that would have been similar in function to Honda's Ridgeline but didn't move forward with the project.
Now, Manley said, Fiat Chrysler is taking another look.
The timing makes sense. General Motors brought back its Chevrolet Colorado and GMC Canyon nameplates after a several-year hiatus in 2014 and they have both been a hit, Honda just launched a redesigned version of its Ridgeline pickup and Ford, which discontinued its midsize Ranger in 2011, is widely believed to be bringing the nameplate back in 2018.
Finally, U.S. sales of the Toyota Tacoma have increased 7% so far this year and sales of the Nissan Frontier are up 29.3%.
"In terms of midsize pickup for Ram I very much believe that that’s an opportunity for the brand," Manley said. "Not just because of the success of the few competitors that have been playing in that field, but I …have been part of the history of the brand, I think it remains a great opportunity for us. But I have no definitive plans for that to announce today."
07-20-16, 09:03 PM
#2
That's great and all, as I do feel like they will move some units with a full size SUV and a smaller truck.
That is until gas prices reach $5 a gallon again, FCA is totally screwed in the American market if that ever happens. The Dart doesn't sell, even their own CEO has nothing but contempt for the Chrysler 200 and has said himself in so many words it is a POS. The quirky Fiat line doesn't sell very well either and suffers the same quality perception as its American Mopar sedans. About the only success FCA has had with fuel efficient vehicles recently has been the Jeep Cherokee and Renegade, personally I think both of those cars are love/hate designs.
That is until gas prices reach $5 a gallon again, FCA is totally screwed in the American market if that ever happens. The Dart doesn't sell, even their own CEO has nothing but contempt for the Chrysler 200 and has said himself in so many words it is a POS. The quirky Fiat line doesn't sell very well either and suffers the same quality perception as its American Mopar sedans. About the only success FCA has had with fuel efficient vehicles recently has been the Jeep Cherokee and Renegade, personally I think both of those cars are love/hate designs.
07-21-16, 12:10 AM
#3
Lexus Test Driver
Just how many times will they test and go ahead with such ideas, only to discontinue the new vehicle? There is nothing to get excited over. Other than the JGC, nearly all their cars, trucks, and SUV's get the ax. We've heard it all before. This is a flaky company that cannot produce competing vehicles that stand the test of time. The marriage to Fiat only made it worse.
07-21-16, 06:08 PM
#4
Lexus Fanatic
IMO, if more people did that, it would make it a LOT easier for auto manufacturers to plan, develop, and sell future products without having to constantly worry if the public is going to be buying Priuses or large full-size trucks and SUVs.
07-21-16, 11:55 PM
#5
Lexus Fanatic
I think that right there is part of the problem. Too many people, IMO, allow whatever current pump prices are to dictate what kind of vehicles they buy. I'm the type of person who, yes, has my likes and dislikes, but will generally buy what vehicle I want (or feel I have need of) regardless of gas prices.
IMO, if more people did that, it would make it a LOT easier for auto manufacturers to plan, develop, and sell future products without having to constantly worry if the public is going to be buying Priuses or large full-size trucks and SUVs.
IMO, if more people did that, it would make it a LOT easier for auto manufacturers to plan, develop, and sell future products without having to constantly worry if the public is going to be buying Priuses or large full-size trucks and SUVs.
07-22-16, 03:09 PM
#6
Lexus Fanatic
I think you are a little out of touch with current buyers and what expectations they have. Most people in the US cannot sustain a price hike on gas. What you are forgetting is that when fuel prices increase, other things increase as well. So if gas prices approach $4 per gallon, the increase is not just felt at the gas pump, its felt everywhere else.
Back to the new Ram-based full-size SUV, given the noted success of both GM's Tahoe/Suburban series (including the GMC and Cadillac derivatives) and the Ford/Lincoln Expedition/Navigator/L-series, I think it's worth a try, at least for now.
Last edited by mmarshall; 07-22-16 at 03:14 PM.
07-24-16, 06:39 PM
#7
I like the idea of more smaller pick-ups from the domestics. It would be nice to see another Dakota and Ranger compete in this market again with the Tacoma, Colorado/Canyon, Frontier, and Ridgeline. Did I forget one? 
Dodge has long had an interesting model with the tweener Durango. It fills a small niche but they do seem to miss out on the cash cow full-size segment. Another opportunity considering they already have the basis with the Ram brand.
Dodge has long had an interesting model with the tweener Durango. It fills a small niche but they do seem to miss out on the cash cow full-size segment. Another opportunity considering they already have the basis with the Ram brand.
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07-24-16, 07:22 PM
#8
Lexus Champion
I like the idea of more smaller pick-ups from the domestics. It would be nice to see another Dakota and Ranger compete in this market again with the Tacoma, Colorado/Canyon, Frontier, and Ridgeline. Did I forget one?
Dodge has long had an interesting model with the tweener Durango. It fills a small niche but they do seem to miss out on the cash cow full-size segment. Another opportunity considering they already have the basis with the Ram brand.
Dodge has long had an interesting model with the tweener Durango. It fills a small niche but they do seem to miss out on the cash cow full-size segment. Another opportunity considering they already have the basis with the Ram brand.
07-25-16, 11:37 AM
#9
Full-size, BOF SUVs should be cash cows, since all development costs have been paid for by the pickup trucks on which they are based. Ladder frames are common, engines are common, front cabins (driver and front passenger) are common. If Toyota can continue to sell the low-volume Sequoia, these full-size SUVs must be cheap to make.
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