Ram CEO: Slate EVs won’t stay cheap after customers add options

Francesco Armenio
Ram CEO Tim Kuniskis questions Slate truck affordability, saying options will inflate $20,000 base price to $35,000.
Slate Truck

Ram already markets a compact and affordable pickup, but not in the United States. It’s the Ram Rampage, sold in South America, a model highly appreciated for its urban format and contained costs. In the USA, however, this type of vehicle has been missing for some time, even though consumer interest is far from disappeared. The American brand under Stellantis is thinking about offering the Rampage in its home market as well, but at the moment there aren’t many details about it.

Ram CEO doesn’t believe Slate pickups will be as economical as they claim

Slate Truck

The automaker hasn’t abandoned the idea of a small pickup truck. However, ambitions to create a truly “economical” vehicle seem complicated. Ram CEO Tim Kuniskis explained in a CNBC interview that, despite the intention to offer an entry-level vehicle, costs are too high. The Ram CEO gave his opinion on Slate Trucks, pickups from a startup also funded by Jeff Bezos, Amazon’s founder. “When people start adding options, it won’t be a $20,000 pickup anymore. It will become a $35,000 vehicle. And at that point you find yourself in the mid-size pickup segment.”

According to Kuniskis, Ram has evaluated “a million times” the idea of offering a smaller and even more affordable pickup in the American market as well, but has always backed down precisely for fear that, between options and upgrades, the final price would end up outside the low-cost segment.

Rampage

The Slate Truck, presented by the eponymous startup, has already collected a significant number of reservations. However, it’s still early to understand if this initial enthusiasm will translate into real sales. The company has in fact requested only a $50 refundable deposit, a very low entry threshold that facilitates booking, but which in the past has often translated into unsatisfactory conversion rates.

As the Ram CEO pointed out, even when a vehicle is born with the goal of being affordable, as in the case of the Slate Truck, the price can rise rapidly with the addition of options and upgrades. It’s a widespread problem in the current automotive sector, where the promise of “economical” models often clashes with the reality of price lists that rise well beyond initial expectations.

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