Ram Says It Needs To Boost ICE Profits To Fund EV Plans

Ram has acknowledged that its transition to electrification will be an expensive one and that Stellantis as a whole will have to work hard to ensure its vehicles remain affordable.

Shortly after Ram presented the all-electric Ram 1500 REV at the New York Auto Show, the company’s chief executive Mike Koval noted that profits from the company’s ICE models need to be boosted in order to fund its EV goals.

“[The REV is] what we’re here to celebrate and talk about, but it’s expensive,” Koval acknowledged. “That’s the elephant in the room for everybody. 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.”

Stellantis CEO Carlos Tavares

It is not just an electric pickup that Ram is working on. Auto News understands that it has previewed an electric midsize pickup to dealers and that in certain markets, it will be available with a petrol engine.

“There’s been enough talk; now it’s time to execute,” Koval added. “We’ve got feedback from the dealers [that] we’re on the right track. They liked what they saw. Now I’ve got to do it. So there’s some corporate bureaucratic approval process, but we’re on the right track.”

Read: 2024 Ram 1500 REV Electric Truck Unveiled, Lacks Concept’s Drama

Of course, Ram isn’t alone in its electrification plans. Its parent company, Stellantis, intends on launching more than 25 EVs in the U.S. by 2030. While in New York, Stellantis chief executive Carlos Tavares said it’s important for the carmaker to tackle the costs associated with developing and producing EVs.

Carlos Tavares and Mike Koval

“The question is, how do we tackle those additional costs?” he said. “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. So it is not in the interest of the corporations. It’s not in the interest of the citizens. It’s not in the interest of the unions that we shrink the market because we become too pricey for the middle classes.”

Ram hopes that the 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). Pricing details for the truck have not yet been announced.