Ford Should Buy Ram Trucks!
It is publicly known that FCA U.S.’s commander-in-chief, Sergio Marchionne, is looking for someone to purchase the company. He went to General Motors’ Mary Barra with just such a proposal. But here’s the thing, maybe Mr. Marchionne should offer up the company piecemeal. If that’s the case, I think Ram Trucks would be a good purchase opportunity for the Ford Motor Company.
FCA makes some pretty interesting vehicles at the moment, but there are worries that slow adoption of alternative fuels and powertrains in their mainstream vehicles makes the company less prepared than most for the 2025 CAFE fuel economy standards. Mr. Marchionne, back in January, addressed what it would take to meet that number.
However, from a sales and growth perspective, Ram Trucks specifically is doing really well. In April, the brand’s year-over-year sales were up 4%, contributing to their best month since 2005. Despite loyal truck buyers, Ram keeps selling more and more pickup trucks. General Motors sales are up in trucks, as are Ford’s, so these buyers are literally materializing out of thin air.
Ram Trucks is the fastest growing full-line truck brand in the country, and there’s no signs of it slowing.
So why does Ford want this company?
It Curtails Competition
Right now, there are three major players in the United States pickup truck market. General Motors with Chevrolet and GMC, Ford with the F-Series, and Ram Trucks. While they aren’t big players, Toyota and Nissan do have interesting offerings. But cutting the Big 3 of truck makers down to the Big 2 would shore up Ford’s bottom line.
Ford would have two major truck brands in this country, the same way General Motors has two.
It’ll Make Ford Money
Keeping the company mostly autonomous, like it is now within FCA, would be the smart play. They can continue to sell more and more trucks, and it’d simply pad the pocketbooks of the Ford Motor Company.
It’ll Give Ford Diesel Dominance
Yes, Ford has the Power Stroke in their Super Duty pickup trucks, but the Cummings name carries a lot of weight amongst diesel fanatics. Offering both diesels would cement their Heavy Duty truck dominance.
In light-duty diesels, they’d have access to the EcoDiesel setup. Customers can choose if they want a diesel or gasoline engine, and then purchase based on their needs and desires. In the end, Ford wins regardless which way a customer goes.
It Opens Doors for Other Acquisitions
Buying Ram Trucks would allow for Ford to put the final nail in the coffin of truck dominance, but it would also open the door for other FCA purchases, like Jeep. Jeep is a super hot brand right now that can almost do no wrong in their customers’ eyes. Having that juggernaut in the stable of the Blue Oval easily escalates Ford to the largest automotive manufacturer in the world.
It’ll Never Happen
Combining the strengths of both companies would make a better product for the customer in the long run. Plus, General Motors provides the checks-and-balances for the sake of competition.
Also, Ford’s hybrid and fuel-efficient offerings help absorb any CAFE losses by bringing on the new company, but when it comes to Ram Trucks, they’re pretty fuel efficient now.
But alas, it’ll never happen. It is doubtful Mr. Marchionne would want to sell each of his brands separately, and even if he did, it’s doubtful that Ford would want to get back into the multiple brand ownership. They have more important things, like Lincoln, to worry about.
Would you support a buyout of Ram Trucks by Ford? Or is that the stupidest thing you’ve read all week? Let us know in the forums!