AUBURN HILLS, Mich. (Reuters) - Fiat Chrysler Automobiles NV's new CEO is tired of being No. 3 in U.S. pickup truck sales.
So Chief Executive Mike Manley is now reconsidering a decision announced in January to stop building Ram heavy-duty pickups at a plant in Saltillo, Mexico. That plant, and another in Warren, Michigan, between them would produce other Ram models and free up manufacturing capacity to make even more new trucks to eat into sales of Ford Motor Co's F-Series or General Motors Co's Chevrolet Silverado, and its higher-end GMC Sierra.
"We need to get ourselves into second" place, Manley told Reuters exclusively in his first interview since taking over the No. 7 global automaker after Sergio Marchionne died suddenly. "Frankly, I don't care which of the two I take share from."
The Ram and Jeep brands underpin the automaker's North American business - which accounted for nearly 85 percent of Fiat Chrysler's second-quarter pre-tax profit - and offset the struggles of its legacy Fiat business in Europe and operations in China.
Ford's F-Series trucks have led the segment for four decades. In 2017, Ford had a 35.6 percent share of U.S. retail truck sales, followed closely by GM at 34.2 percent and FCA with 22.3 percent.
Pickup trucks are the single biggest contributor to the Detroit Big Three automakers' profits, so there is plenty at stake as they fight for market share.
So far, the gamble appears to be paying off. The new Ram 1500's average sale price for the year to date through late October hit $46,856, - higher than the $42,389 average for the Ford F-150, according to industry data.
Hayden Elder, owner of Elder Chrysler Dodge Jeep Ram in Athens, Texas, said three times in under a month he has had families trade in nearly-new large SUVs made by FCA's rivals for a new Ram 1500.
"This new Ram is the biggest leap I've ever seen from one version to another," Elder said. About 70 percent of the 800 vehicles he sells annually are trucks.
"HAVEN'T FOUND THE CEILING YET"
Phil Jansen, Fiat Chrysler's head of product development, said when his team began redesigning the Ram 1500, they decided a lighter, all-aluminium body - which Ford uses for its trucks - was too expensive. GM executives reached the same conclusion.
The decision to offer a larger dashboard screen than its rivals have came late in the design process. Initially, the big screen was offered in the top three of the truck's six versions. Fiat Chrysler has since decided to offer it on an additional version.
Demand is so high, the company has pushed the screen's supplier for as many screens as it can provide, according to a source familiar with production plans.
"We haven't found the ceiling yet" for what U.S. customers are willing to pay for additional features, said Jim Morrison, head of the Ram brand in North America.