Stellantis Sees Ram Sales Rebound as Inventories Shrink
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Stellantis NV’s Ram sales are rebounding in October as the automaker raises incentives to clear bloated inventories, said Chris Feuell, CEO of the Ram and Chrysler brands.
Ram brand sales are up 35% to 40% so far in October, Feuell said at a Reuters automotive conference in Detroit Oct. 22.
“We’ve got the right blend of marketing and incentives going on in the market right now and that’s really contributing to the higher sales that we’re seeing on both Ram and Chrysler,” said Feuell, who took charge of the Ram brand in June after the departure of company veteran Tim Kuniskis.
Stellantis has struggled in the U.S. over the last year, posting sales drops for five quarters in a row. Sales for Ram — one of its main U.S. profits drivers — were down 24% in the first nine months of the year.
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The company is trying to clear inventory ahead of two new truck launches expected by year-end: the all-electric Ram REV, and the Ramcharger, a battery-powered pickup with an on-board gas generator to boost range and towing capacity.
Ram’s U.S. inventories were at least double the industry average at the end of August, according to researcher Cox Automotive.
Ram’s sales have been stymied by production snarls and excess inventory on dealer lots. Feuell confirmed on Oct. 22 that Stellantis is expanding a truck plant in Saltillo, Mexico to produce some Ram 1500 trucks next year.
Production shifts to Mexico have angered the United Auto Workers Union, whose workers have suffered layoffs as Stellantis cuts costs. The company is laying off 1,100 workers at its Warren, Michigan truck plant.
Feuell denied the move was motivated by cost reduction and said the company is expanding to Saltillo because its other Michigan plant will be maxed out.
“We know we’ll be tapped out on capacity with the growth we’re projecting in the 1500,” she said. “The plant in Saltillo does a really good job managing the complexity and they’re already building pickup trucks right now.”
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