Fiat Chrysler’s Ram Commercial truck and van venture is performing well, rising from nothing to occupy 15% of the commercial vehicle market in just five short years, Wards reports.
Ram Commercial sells the Ram 1500 and Ram 1500 chassis cab trucks and Ram Pro Master and Pro Master City commercial vans. The vehicles have helped them gain respectable market share in a short amount of time, but Dave Sowers, head of Ram Commercial, is hungry for more growth.
“We aren’t satisfied with 15% and need to grow further,” Sowers told Wards.
According to Sowers, Ram Commercial sold about 250,000 trucks and 90,000 vans in 2015. He didn’t disclose year-to-date sales figures for 2016, but he’s expecting an increase in sales over 2015. Ram Commercial has a particularly strong outlook for the fourth quarter of this year, in part due to government tax credits.
“The government approved special tax credits for small businesses last year, but the approval didn’t take effect until December,” Sowers explained. “This year, as the end of the year approaches, small businesses will have the time to realize if they are going to make a profit for the full year…they can start spending in October, November and December to take advantage of the tax breaks.”
“Also contributing to a strong sales outlook are lower gas prices, rising housing starts and businesses having no trouble getting credit – all factors that influence confidence and an increased willingness (by commercial customers) to spend money on new product.”
Sowers is happy with Ram Commercial’s lineup, saying it covers most of the bases, but did say they company could have more offerings “in big, over 10,000-lb. vehicles.” He also said they are going to keep an eye on the small or mid-size pickup space as competitors such as General Motors enter that arena.
“We’ve looked at a small pickup for some time and are watching that market. But we have no firm plans to announce,” he said.