Reid Bigland, FCA head of U.S. Sales, reported that the company’s Ram division set a new sales record in June.
For much of the past year, Fiat Chrysler’s Ram brand has been creeping up on Chevrolet’s sales of the full-sized Silverado. That is no longer the case as during the second quarter, Ram outsold Silverado for the first time, taking over the No. 2 spot behind Ford.
Ram sold more than 68,000 pickups in June, noted Reid Bigland, head of FCA sales. In all, Sales of Ram pickups for June rose 56% to 68,098 vehicles. For the quarter, Ram pickup truck sales finished at 179,454 vehicles.
The strong month resulted Ram outselling Chevrolet for the second quarter by more than 35,000 trucks: Silverado sales were 142,464.
“For the first-half of 2019, Ram has been on a tear since we made the strategic decision to enter the year with a three-truck strategy. The new Ram 1500, Ram Classic and Heavy Duty are all generating a huge response from customers and critics alike,” said Reid Bigland, head of FCA sales.
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“This is now the third month Ram pickup sales have surpassed 60,000 since December. Our dealers had a steady stream of customers all month long,” Bigland said.
Sales of the Ram Classic have exceeded expectations, helping the brand supplant Chevy as the No. 2 seller.
The news for GM doesn’t improve any as deliveries during the second quarter were down 1.5% versus a year ago, in line with third-party estimates for industry sales. The company estimates that its retail market share was even with a year ago, with truck and crossover deliveries offsetting lower passenger car sales.
Sales of the Silverado light-duty pickup truck dropped 9.4% during the first six months of 2019 to 194,426 as sales of the Ram pickup surged. Ram has been on a roll for some time now, and the reasons are pretty straightforward, according to one analyst.
Affordability has been a major issue in the pickup truck segment. For instance, the 2019 Ram 1500’s average MSRP is now above $50,000, and the Chevrolet Silverado 1500’s average MSRP is just below $50,000.
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However, with the higher price comes new technology, including a 5-inch Uconnect touchscreen standard for Ram or the optional 12-inch screen, which rivals the tablet found in Tesla’s Model S, notedGeorge Augustaitis, director of industry analytics for CarGurus.com.
Chevy Silverado sales fell 9.4% during the quarter.
However, Ram’s solution to the affordability problem is to keep its previous-generation vehicle, now called the Ram Classic, he said, and price it lower than other new trucks. The Ram Classic trim’s average MSRP sits just above $40,000.
“While the Classic lacks some of the new technology, engine offerings, and towing capabilities of the new Ram,” he said, “its relative affordability appeals to price-sensitive consumers who are willing to make those tradeoffs.”
By making both the new Ram 1500 and the RAM Classic available, Ram addresses two different segments: those buying for technology and safety, and those buying for value. This leaves Chevy in a tough spot.
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“Transaction price growth accelerated in June, climbing 3% as demand for trucks and SUVs pushed sales and prices up in those segments. Light trucks and SUVs are expected to account for about 71% of sales in June, up from 68% a year ago.,” said Tim Fleming, analyst for Kelley Blue Book.