Unlocking RAM’s Winning Formula: Raising Opinions, Increasing Sales, and Outselling Silverados

For a long time now, Dodge has been something of a red-headed stepchild when it comes to full-size truck offerings from the Big Three. Fellow lifelong Mopar fans can attest to the brutal verbal beatings from Ford and Chevy guys when it comes to owning Dodge products—a healthy dose of which comes from truck owners. So, let me tell you that watching RAM outsell Chevy has been some sweet, sweet satisfaction. Because, let’s not forget that, as those RAM sales climb, that likely means more than a few smack-talking opposers are beginning to come to the dark side.

Let’s Talk Numbers

In April, Motor Trend reported that during the first three months of 2019, Chevrolet sold 114,313 Silverados, almost a 16-point decrease compared to last year. Likewise, GMC Sierra sales dropped as well—2.2 percent to be exact—down to 40,546 trucks. But RAM? RAM sales jumped 15% to 120,026! (That’s 5,713 more trucks than Chevy, for those of you keeping score.) And while neither automaker came close to touching Ford, sitting on its cushy throne of 214,611 F-Series pickups, it was an interesting little trend to keep an eye on.

But now, it seems to be a trend not only worth watching, but also tracking. As of June 2019, RAM truck sales hit 333,168 to Chevy’s 256,777 and Sierra’s 97,403. (Ford’s still sitting pretty with a whopping 448,398 pickup sales.) And even if we give the bowtie a handicap here—combining truck sales with its better-dressed sister badge—GM only gains a lead of roughly 20,000 truck sales. Spoiler alert: That’s not a whole lot. Especially, in light of RAM’s recent… shall we say, aggressive sales tactics?

GM’s Sour Grapes

GM hasn’t held back on expressing its opinion of FCA’s method for selling trucks. In fact, GM spokesperson Jim Cain told the Detroit Free Press back in April, “The RAM pickup’s first-quarter sales victory over Silverado amounted to a hollow chocolate Easter bunny, because FCA has been pulling out all stops to win sales.”

A hollow chocolate Easter bunny. While this sounds like some (whimsical) sour grapes, GM isn’t entirely wrong about FCA’s Oprah-giveaway attitude toward RAM sales incentives. According to the same publication, in some markets (like Texas), FCA was stacking discounts on the RAM Classic topping $18,000! That’s INSANE. Furthermore, the automaker is extending these competitive deals to the brand-new 1500 as well. Frankly, this is a ballsy move that may seem almost too aggressive (and not entirely sustainable). Although, I suppose all’s fair in love and Truck Wars.

Appealing to Budgets

Besides, we can’t ignore the important little nugget of market research that Motor Trend dropped in the aforementioned write-up: 68% of people feel pickup trucks are currently overpriced.

As it stands, the bare bones, boring base model RAM 1500 starts at $31,895—$3,595 more than the Silverado and $3,740 more than the F-150—which could potentially account for those sales incentives. Price up to mark down, right? Well, that price difference only exists because RAM dropped its single-cab configuration—necessitating a higher MSRP. When you factor this in, the price gap shrinks.

Now you’re offering consumers an award winning, half-ton truck, with an exceptionally fuel-efficient engine, highly-rated redesigned interior, extended or quad-cab configuration, and non-polarizing grille at a competitive price that comes with a big ol’ coupon attached.

Are we really surprised that RAM sales are up??

Two Heads Are Better Than One

Another thing to keep in mind is that FCA’s numbers aren’t coming from one RAM, but two. Both the outgoing Classic and new 1500 models are selling side-by-side this year, with both contributing to RAM sales numbers. And according to Automotive News, it’s no small amount.

“The earlier-generation model … made up nearly a third of RAM’s pickup sales in the first quarter, according to J.D. Power. Dealers say that while the Classic lacks some of the bells and whistles of its successor, it retains wide appeal among consumers not ready to absorb the higher payments of the new truck, bargain hunters scooping up generous incentives, and commercial clients who need basic work vehicles to beat on.”

Commercial clients appear to be the important takeaway here, as Motor1 reported in May that CEO Mike Manley expressed no desire to put the Classic out to pasture, seeing it as “a pivotal vehicle, responsible for attracting government and commercial fleet sales.”

In fact, another of Cain’s critiques of FCA’s tactics was its practice of paying $8,500 bonuses to dealerships for putting RAM Classic models into their courtesy transportation fleets. Even though the dealership is technically the buyer in this scenario, it still counts as a retail sale. Plus, that truck can then be resold as a used vehicle.

Granted, this may appear… well, slimy. However, data shows that these transactions only make up 1.4% of RAM’s total sales for 2019. To me at least, this seems more like smart advertising as opposed to a way to inflate numbers.

Ultimately, with the RAM Classic and latest-gen 1500 both on the table, the automaker can cast a much wider net over the truck-buying demographic, capturing two audiences with different needs.

A Winning Product

So, is this the winning formula? Aggressive sales and fuzzy morals?

In my opinion: No. While the incentives, short-term leases, and fleet strategy surely help FCA sell more RAMs, the company also just has a really good product on its hands. Personally, as a thorough Dodge man, I dislike the break with traditional methods. (Mild hybrid technology??) My type is iron grid, true-to-form, and no-nonsense. When automakers get experimental, I get mad. This is partly why I love the F-250s. (See, I can be bipartisan.)

Dual operated transmissions, 8-speed gearboxes, mild-hybrid tech, and air suspension are all bad voodoo to me. But apparently, people love them. And I will admit that the addition of these features shows that the RAM brand isn’t afraid to marry modern comfort and convenience with those elements we’ve come to expect from something sporting a Dodge heritage.

For example, the removal of single cab option feels like something the guys-in-suits decided, based on number crunching. It’s probably the same reason we won’t see a 2-door Gladiator. And the air suspension, while perhaps out of place on a work truck, does increase comfort and ability for daily drivers. And this Mild-Hybrid nonsense? It’s probably a good indication of where the automaker is headed, as the race for lower emissions wears on. Rumor has it, we’ll actually see this type of technology bleeding through to the new-generation Challengers in the near future.

Speaking of the Challenger…

The new design on this latest generation of RAMs, sports styling that is not just attractive, but built to perform. With a coefficient of drag coming in at .357, this truck is aerodynamic. If you buy the smallest wheelbase configuration, you have a 4,700-lb truck with over 300-hp that cuts through the air like a Charger or Challenger. And that’s something an enthusiast can appreciate, not just an average truck buyer.

Clearly, FCA’s game plan involves more than just slashed prices. They’re working to hit a sweet spot that’s a little bit brand loyalist, performance enthusiast, and daily driver in one. All while remaining budget-friendly and attractive.

GM’s Latest Response

Now, in GM’s defense, Cain’s quotes about RAM sales were from an earlier period this year—and no one is going to speak highly of the competition right after being dealt a blow. Since then, the automaker has responded with more grace to the whole ordeal and revealed what it believes to be its Achilles heel.

GM Authority writes, “The all-new Silverado 1500 was nowhere close to being fully-available during the first quarter. Specifically, availability of all-new Regular Cab and Double Cab Silverados was extremely limited during the quarter, due to launch timing. Full production of all cab styles started in March. That means that these vehicles only started trickling into dealers during the final week of the first quarter, and in full force during the second quarter. By comparison, the Ram pickup is running at full availability, as it launched prior to the all-new Silverado.”

And the automaker itself insists that 2019 Silverado sales are off to a strong start, thanks to a “smooth” production start and “brisk” crew cab sales. “We look forward to improving availability of our wide-range of cabs, trim series and powertrains,” said Kurt McNeil, U.S. Vice President, Sales Operations.

Pickup Wars Pick Up Steam

So, I took my shots—but let’s not forget that the Truck Wars wage on. GM has certainly had some hurdles this year but that by no means the automaker has a poor product. I, like many others, happily awaited the reveal of the new mid-engine Corvette—which did not disappoint.

As for the legendary Silverado, time will only tell if it can reclaim its former position as America’s #2 truck. Personally, I think FCA just played a pure power move, cementing it in place for a while. In fact, it’s a horse I’m willing to bet on. After all, once you go Mopar…

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