Stellantis Sees Ram Sales Rebound as Inventories Shrink

Stellantis NV’s Ram brand is experiencing a significant sales boost in October, with a reported increase of 35% to 40% due to raised incentives aimed at reducing excess inventory. This comes after a challenging period for the company, which had seen a decline in sales for five consecutive quarters and a notable 24% drop in the first nine months of the year. The CEO of Ram and Chrysler, Chris Feuell, attributes the sales rebound to a strategic mix of marketing efforts and incentives just ahead of two upcoming truck launches—the all-electric Ram REV and the Ramcharger, a battery-powered pickup with a gas generator to extend range. Despite the positive sales figures, Ram’s inventories were reported to be over double the industry average at the end of August. Production issues and excessive inventory on dealer lots have hindered sales in the previous months. In response to anticipated demand, Stellantis has confirmed an expansion of its truck plant in Saltillo, Mexico, to produce some Ram 1500 models next year. This move, however, has sparked backlash from the United Auto Workers Union, particularly due to layoffs at the Michigan plant and ongoing cost-cutting measures by Stellantis. Feuell has insisted that the expansion is driven by capacity limitations at the Michigan facility rather than cost reduction. From a transportation perspective, the situation highlights a significant trend in the industry, where automakers are increasingly leveraging incentives to manage inventory amidst fluctuating demand. The shift of production to Mexico brings efficiency into the equation but raises concerns about labor relations and local economic impacts. As electric vehicle offerings grow, the logistics of transitioning production facilities and managing supply chains will be crucial in maintaining market competitiveness while addressing labor dynamics.