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Fiat-Chrysler CEO Mike Manley Aims to Boost Ram Trucks Production Amid Market Competition
Tired of Ram Trucks’ third-place ranking in the American market, Mike Manley, the new CEO of Fiat-Chrysler, is considering strategic changes. In his inaugural interview since taking over, Manley revealed to Reuters that he is reevaluating the company’s earlier decision to halt pickup production in Mexico and instead consolidate operations in Michigan, especially in light of the new USMCA trade agreement and the growing demand for trucks.
Currently, production of the latest "DT" generation of the Ram 1500 is exclusively conducted in Sterling Heights, Michigan, while the older heavy-duty Ram trucks are manufactured in Saltillo, Mexico. Last year, with the threat of a 25 percent tariff on Mexican-made trucks entering the U.S., former CEO Sergio Marchionne proposed relocating all heavy-duty truck production back to Michigan. The company confirmed this plan in January, stating that the Saltillo facility would be repurposed for other commercial vehicles.
This shift would mean that all Ram Trucks would be produced in just two locations: the Sterling Heights plant and the Warren Truck Assembly plant, which is currently being upgraded to accommodate both the new Jeep Wagoneer and the forthcoming generation of Ram’s heavy-duty trucks. However, with a new provisional trade agreement reached between the U.S., Mexico, and Canada, the anticipated blanket tariff on Mexican-manufactured Rams appears unlikely. As a result, instead of halting production in Mexico, Manley intends to utilize the additional capacity of a third plant to meet the demands of the robust domestic market.
“With a combination of Warren [Michigan] and Mexico producing what we refer to as the classic truck, we have the capacity to increase output next year if necessary,” Manley explained to Reuters. “I believe it will be necessary. We are gaining market share and I expect that trend to continue, but the competition is fierce.”
The focus is on volume. If demand continues to rise, this strategy could prove beneficial for all parties, provided the two Michigan plants are operating at full capacity. Conversely, if they are not, questions may arise regarding whether Ram has overreached in its pursuit of greater market share. It is also unlikely that production of the new Ram 1500 will start in Mexico, as Fiat-Chrysler has recently invested $1.49 billion to upgrade the Sterling Heights facility for its manufacturing.
Fiat-Chrysler is determined to become the second-largest truck seller in the U.S. and recognizes that overtaking Ford is no small feat. “We need to secure our position in second [place],” Manley stated. “Honestly, I don’t mind from whom I take market share.”
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