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Ram wants its midsize truck situation 'fixed soon'

The rumors of a midsize Ram pickup are like a metronome — sometimes in motion, sometimes dead. This week the rumor is alive, so reports Automotive News. Fiat Chrysler CEO Mike Manley admitted during an earnings call that the lack of a mid-sizer is "a clear hole in our portfolio," and that the Ram product development team is "focused on it." Puzzling that out means finding "a cost-effective platform in a region where we can build it with low cost and it still being applicable in the market." But he wants a solution found soon. During the product roadmap presentation FCA made in June last year, late CEO Sergio Marchionne said the middling pickup would be built in Mexico. That tidbit came after years of Marchionne saying the brand would get in the segment, only to have the idea shot down by Ram bosses. At the 2012 Detroit Auto Show, a year after the midsize Dodge Dakota went off the market, Marchionne said the brand would reinstate a new-generation Dakota, with a better-than-50% chance it would be unibody. In 2013, then-Ram president Reid Bigland said the chances were tiny because the numbers didn't add up. The two men got on the same page, in favor of, in 2014. In March 2016, Marchionne said, "I like that space a lot," and "It's a good space to be in." Exactly one month later, then-Ram CEO Bog Hegbloom said the idea was dead because he couldn't make a business case for it. Come early 2018, even Marchionne had joined the naysayers. He told Automobile, "We did not think it was necessary to re-enter that market after our last experience." The snag was, and remains, that a smaller truck has "a cost structure very similar to our Ram 1500. We have not found an economic way to get this done." Four months later, there's a midsize pickup on the product roadmap. Then, at this year's New York Auto Show, Ram Trucks boss Jim Morrison told us Ram had no plans yet for a smaller pickup, although the division continues to look at its options. Last September an Automotive News report forecast the truck to be built in Toledo alongside the Jeep Wrangler and Gladiator pickup. When Car and Driver asked for clarification about Toledo or Mexico, FCA pointed to Marchionne's comments referring to Mexico. It appears that's the angle Manley and his team are still trying to make work. The Saltillo, Mexico, assembly plant now builds Ram's heavy-duty trucks, but observers expect HD production to move to the U.S. to make room for the smaller pickup.

Stellantis reports record margins, $7B profits despite chip shortage

MILAN — Automaker Stellantis on Tuesday said it achieved faster-than-expected progress on synergies and record margins in its first six months as a combined company, despite suffering 700,000 units in lower production due to interruptions in the semiconductor supply chain. The company — formed from French carmaker Peugeot PSAÂ’s takeover of the Italian-American company Fiat Chrysler — reported net profit of 5.9 billion euros ($7 billion) in the first half of 2021, compared with a loss 813 million euros during the same period a year earlier, which was impacted by the coronavirus restrictions around the globe. Shipments rose 44% to 3.2 million units, while revenues rose 46% to 75 billion euros. “We are very pleased with the speed with which the new team has begun to execute as one company, as Stellantis,Â’Â’ Chief Financial Officer Richard Palmer told reporters. Semiconductor shortages accounted for 200,000 units of production losses in the first quarter and 500,000 in the second quarter. Semiconductors are used more than ever before in new vehicles with electronic features such as Bluetooth connectivity and driver assist, navigation and hybrid electric systems. Stellantis achieved 1.3 billion euros in cost savings in the first half, mostly by sharing investments in new technologies and platforms, which Palmer said was a faster rate than initially forecast. It aims to achieve 80% of the targeted 5 billion in cost savings by 2024. “These synergies allow us to continue to invest in the electrification strategy, which we talk about every day,” Palmer said. Stellantis, which lags competitors in rolling out electric vehicles, plans to launch 21 fully electric or plug-in gas electric hybrid vehicles over the next two years. North American posted record profitability on global sales of Ram trucks and the strong launch of the Jeep Wrangler 4xe, which was the best-selling plug-in gas electric vehicle in the United States in the second quarter. Stellantis was the market leader in South America and second in Europe. The results were presented on a pro-forma basis, taking into account the performance of each of the carmakers as separate entities during 2020. Related video: 2021 Jeep Wrangler Rubicon 392 Inside and Out

Electrified Ram pickup on the way, FCA CEO says

Ram will build an electrified pickup, FCA CEO Mike Manley confirmed during the company's third-quarter earnings call Wednesday. Manley provided no details, but confirmed that electrification is on the way for its truck brand. This also means that it's not clear whether this truck will be a full electric, or if it will be a conventional or plug-in hybrid. It's still significant, though, since this is the first time we've heard a clear message from FCA leadership that electrification will be a priority for Ram.  “I do see that there will be an electrified Ram pickup in the marketplace, and I would ask you just to stay tuned for a little while, and weÂ’ll tell you exactly when that will be," Manley said, according to the Detroit Free Press.  With concrete plans starting to emerge from both Ford and General Motors, FCA is now looking like the odd one out. Company representatives have been tough to nail down on the question of electrification. Without ruling it out entirely, Manley and other shot-callers have been somewhat dismissive of the notion in previous announcements and interviews.  "The reason we haven't spoken much about electric pickup trucks is not because we view that market as non-existent. We've always had a slightly different view of timing and adoption rates, particularly in North America in terms of full electrification. We are very committed to our electrification strategy — most of which we have revealed," Manley, said in August. Of course, what had been revealed at the time did not include a pickup. That hasn't exactly conclusive, either, as FCA's future product roadmap has been nebulous (to put it charitably) for essentially the past decade. The announcement of a merger with PSA resulted in yet another strategic reboot, and we've yet to see exactly how Stellantis will integrate existing PSA electrification plans with FCA's fast-and-loose approach to EVs.  Given the fact that PSA is not a player in the full-size pickup game, it stands to reason that Ram's development would likely come from this side of the pond. Whether FCA/Stellantis will keep the development in house or tap one of America's electric startups as a potential partner or supplier remains to be seen. Either route has potential, with a number of electric truck start-ups in the U.S., and extensive EV and hybrid experience within FCA and the soon-to-be-integrated PSA group.