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November 03, 2022 08:46 AM

Could a midsize Ram be the brand's next big thing in Canada?

The midsize pickup segment is an opportunity, if the brand can attract buyers

SAMI HAJ-ASSAAD
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    DAKOTA4-MAIN_i.jpg
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    The 2005 Dodge Dakota had its world premiere at the 2004 Chicago Auto Show. The Dakota was dropped in 2011, but the midsize market is tempting to Ram.

    If the popularity of the Jeep Gladiator pickup is an indication, a new midsize Ram — to be shown in concept form next year — could find favour with consumers.

    “Our experience with the Gladiator has been positive; it has a bit of that Wrangler feel to it with a go-anywhere attitude,” said Trent Hargrave, dealer principal at Riverside Dodge-Chrysler-Jeep-Ram in Prince Albert, Sask.

    Ram CEO Mike Koval Jr. said the brand is considering introducing a midsize pickup, in addition to the current full-size Ram 1500. To help gauge interest, dealers would get the first glimpse of a concept vehicle in March.

    “We’ve always said we know that on a global basis, probably the biggest area, the biggest white-space opportunity for our brand to grow, has been the midsize pickup,” Koval told sibling publication Automotive News Sept. 25 on the sidelines of the North American International Detroit Auto Show.

    “We’re looking at it — believe me, I am. We’ll see, but I am thinking about bringing it and giving our dealers a sneak peek.”

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    How should such a pickup stand out, though?

    “A small Ram would have to be tough,” said Hargrave, “a different tone than the Jeep … a small pickup with strong fuel efficiency would be a big difference-maker [that provides] relief from high gas prices.”

    IS THERE A DEMAND?

    SUPPLIED PHOTO

    The Jeep Gladiator, above, has garnered quite a following. But could a midsize Ram do the same?

    Homer Zehtabi, fleet sales manager at Seven View Chrysler-Dodge-Jeep-Ram in Toronto, isn’t sold on a midsize Ram.

    “We don’t get inquiries on a smaller pickup. In fact, we used to have the [Dodge] Dakota, which was not a great seller. Versatility is very important, and that’s why in general, smaller pickups don’t last in our market or don’t really take off.”

    A smaller Ram would have to combine utility with “innovative features” to generate consumer interest, Zehtabi said.

    “Ram offers you luxury, but its spirit is still one of a work-oriented truck. A smaller Ram should have the same spirit or something innovative at the bare minimum to change public perception.”

    Related Article
    Ram weighs return of midsize pickup

    The potential addition to the highly profitable Ram lineup comes as more smaller pickups — the Ford Maverick, Hyundai Santa Fe, for example — come onstream and gain popularity.

    “The market has been reinvigorated with new models, which offer distinct new features — for example, greater fuel economy and hybrid powertrain technology, off-road specialty models, etc.,” said Robert Karwel, senior manager of the Canadian automotive practice at J.D. Power.

    “We have seen much excitement in this part of the market, and growth is expected to continue.”

    Toyota led the segment in 2021 with 14,878, and 9,450 in the first nine months of 2022, according to the Automotive News Research & Data Center. The segment also includes the Nissan Frontier, Chevrolet Colorado, GMC Canyon and Ford Ranger.

    While those midsizers have body-on-frame designs, others, such as the Honda Ridgeline, the Maverick and the Santa Cruz, are adaptations of utility-vehicle designs with unitized construction. They’re generally smaller and provide pickup utility but with less cargo and towing capacity.

    CAPABILITY AND COST

    SUPPLIED PHOTO

    The last midsize pickup from Stellantis — back when it was Fiat Chrysler Automobiles — was the Dodge Dakota, which was discontinued in 2011.

    Much of the enthusiasm for smaller pickups, “will be supported by the lower price of entry into a pickup truck body style the subhalf-ton market can provide,” said Karwel. “Manufacturers are also more interested in these segments as a way to conquest new, first-time buyers into their brand and the truck segment, which can provide a way to segue these customers in the future to the other traditional models they offer.”

    “Many Canadian consumers need or want a pickup truck body style but don’t need or want the capability, capacity and size [that] modern half-ton trucks offer,” he said.

    Midsize pickups “offer a lower entry point in terms of pricing and can thus appeal to a wider audience of Canadian consumers due to their lower operating costs.” Those savings include lower fuel, repair and insurance costs compared with those of full-size pickups.

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    Riverside’s Hargrave thinks the market is ready for a smaller Ram.

    “[It would be] more city-friendly, and those that aren’t comfortable driving a large vehicle would like it,” he said. “I would certainly like it.”

    PAST FOCUS ON FULL-SIZE

    The midsize-pickup segment changed significantly more than a decade ago after Fiat Chrysler Automobiles, Stellantis’ predecessor, dropped the Dodge Dakota, and Ford ended the Ranger. For the 2019 model year, Ford introduced a new Ranger based on a global platform.

    “Focus and resources were clearly put into the full-size market,” said Karwel. “[It was] understandable, since these trucks are so popular with Canadians. And sales were growing, while the compact market was stagnant.”

    The Gladiator’s brand positioning and marketing message is uniquely Jeep.

    “Ram is a workhorse compared to the Gladiator, which is an off-road and fun vehicle,” said Zehtabi, the Toronto dealer.

    Further ostracizing it from small-truck shoppers, the Gladiator is a premium niche vehicle with a starting price in the mid-$50,000 range, nearly $10,000 more than the base Tacoma.

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