Impossible? Why are there no cheap $40k new full-size trucks

testerdahl

testerdahl

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Ram CEO Tim Kuniskis was recently asked why he couldn’t build a cheap $40k new full-size truck and he said several factors forced his hand. Is it really that impossible? Cheap $40k new full-size truck There’s no doubt the automotive industry has an affordability problem. For the past decade, truck prices have grown each year incrementally and now the average transaction price for a new full-size truck regularly exceeds $50,000. That isn’t to say there aren’t cheaper versions known as stripped-down models or work truck versions with rubber floor mats and bench seats available, however, they all retail for around […] (read full article...)
 
Part of the reason is Ram only sells crew cabs, I would think that adds a one or two thousand dollars to the price right there.
 
I has to be a very vocal minority that wants a cheap full size truck. As you've mentioned I read about it in the comments every day but they just don't sell or didn't sell when offered.


But I also chuckle at the thought of a large corporation not making any decisions from a "greed" standpoint lol.
 
In a 5 year span from 2019-2024 The CEO of Stellantis compensation went from 8.6 million (Manley 2019) euros per year to 40 million, a little more in USD almost 9 to 43. In that same time frame the GM CEO was low 20's to high 20's in total compensation. That peaked at 29 and then settled back down. Ford also went from Hackett at 17m to Farley peaking at 26.5 in 2023 before coming back down a bit.

So, in a 5 year span that saw RAM/Dodge begin to really struggle form various angles the CEO of Stellantis earned 5 times more money.

No greed involved though.

I'm not one of the people that tend to think CEO's are overpaid and that we should take their money. They can have a HUGE impact on the success of a company. However, when it all shits the bed... well Stellantis allowed that to happen and are paying the consequences. When we're asking Tim Kuniskis about why they can't make a 40k truck and the reasons are:
  1. People don't want them
  2. We can't make money on them
  3. Gov't regulations have added cost
It wouldn't hurt to look in the mirror and talk about the other side of the coin. In that same time frame Stellantis allowed their CEO's pay to increase 5 fold while issues were arising and market share slipping.

But, as always, they won't talk about that other side of the coin. They just want us to lap up their PR spin. It's quite exhausting.
 
Fightnfire said:
In a 5 year span from 2019-2024 The CEO of Stellantis compensation went from 8.6 million (Manley 2019) euros per year to 40 million, a little more in USD almost 9 to 43. In that same time frame the GM CEO was low 20's to high 20's in total compensation. That peaked at 29 and then settled back down. Ford also went from Hackett at 17m to Farley peaking at 26.5 in 2023 before coming back down a bit.

So, in a 5 year span that saw RAM/Dodge begin to really struggle form various angles the CEO of Stellantis earned 5 times more money.

No greed involved though.

I'm not one of the people that tend to think CEO's are overpaid and that we should take their money. They can have a HUGE impact on the success of a company. However, when it all shits the bed... well Stellantis allowed that to happen and are paying the consequences. When we're asking Tim Kuniskis about why they can't make a 40k truck and the reasons are:
  1. People don't want them
  2. We can't make money on them
  3. Gov't regulations have added cost
It wouldn't hurt to look in the mirror and talk about the other side of the coin. In that same time frame Stellantis allowed their CEO's pay to increase 5 fold while issues were arising and market share slipping.

But, as always, they won't talk about that other side of the coin. They just want us to lap up their PR spin. It's quite exhausting.
Click to expand...
I have a huge problem with CEO pay. I've met or listened to plenty of them. They are idiots who couldn't find their butt from a hole in the ground.

With that said, the facts are it is a multi-trillion dollar business. Cutting the CEO pay down by even 20 million won't impact trucks prices more than $10. I hate that, but it is a fact. The volume, globally, is too high to have much impact.

Most of the automakers jobs are blue collar. The white collar jobs don't make up that much of the payroll.

It does NOT look good when the CEOs are paid that much or given a golden parachute. That's for damn sure.
 
That's if we're assuming only the CEO was inflated and overpaid. Dismissing a 5x bump in pay in the same span that RAM and Dodge began struggling and losing market share is slightly dismissive.

His bump in pay also coincided with cutting talent left and right. Which put them in financial trouble which trickled down to the ability to make trucks the way they wanted and then the decisions being made. I would bet turning record profits became Paramount. Which led to a lot of stupid decisions by multiple people not just the CEO.

I guess I'm also saying that this points to a culture problem more than a straight-up CEO pay problem of which Tim K was a member of for all but 6 months. It's very possible that's why he left but he was still present and culpable.
 
Fightnfire said:
That's if we're assuming only the CEO was inflated and overpaid. Dismissing a 5x bump in pay in the same span that RAM and Dodge began struggling and losing market share is slightly dismissive.

His bump in pay also coincided with cutting talent left and right. Which put them in financial trouble which trickled down to the ability to make trucks the way they wanted and then the decisions being made. I would bet turning record profits became Paramount. Which led to a lot of stupid decisions by multiple people not just the CEO.

I guess I'm also saying that this points to a culture problem more than a straight-up CEO pay problem of which Tim K was a member of for all but 6 months. It's very possible that's why he left but he was still present and culpable.
Click to expand...
You should see the look on the senior Ram team members faces when I mention Tavares. Seething at the teeth comes to mind. I bet they had a drunk fest party when he got canned.
 
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