Ram, a subsidiary of Stellantis, has recently unveiled its all-electric Ram 1500 REV at the New York Auto Show. While this move towards electrification is exciting, the company’s CEO, Mike Koval, acknowledged that it will be an expensive transition. “The cost of electrification is expensive, so for sure we need to make sure that we protect the profitability of our current in-market [internal combustion engine] business to help fund the transition to electrification,” Koval stated.
Ram is not just focusing on the Ram 1500 REV, as it has also previewed an electric midsize pickup to dealers, which will be available in certain markets with a petrol engine. Koval noted that there has been enough talk about electrification and now it’s time to execute, although there is a corporate bureaucratic approval process to go through.
Stellantis, Ram’s parent company, has even more ambitious plans, intending to launch more than 25 EVs in the U.S. by 2030. Stellantis CEO Carlos Tavares stressed the importance of tackling the costs associated with developing and producing EVs. “If we don’t do it, we are just going to have a significant reduction of the size of the market because [the] middle class will not be able to buy EVs, very simply put,” Tavares stated.
Ram hopes that the Ram 1500 REV will attract buyers away from rivals like the Ford F-150 Lightning and Rivian R1T, thanks to the availability of a massive 229 kWh battery pack that should give the truck a range of up to 500 miles (805 km). However, pricing details for the truck have not yet been announced.
As the auto industry transitions to electrification, it’s clear that affordability is a key concern. Ram and Stellantis are aware of this and are working to ensure that their vehicles remain accessible to the middle class. As Koval stated, “We need to make sure that we protect the profitability of our current in-market [internal combustion engine] business to help fund the transition to electrification.”
