Ram Commercial Gets Credit for March Sales Madness

Ram-Commercial-logo IIIMG_7944a II

As part of Ram's partnership with the Academy of Country Music Awards in Las Vegas this year, dozens of select dealers were invited to a special House of Blues concert featuring country music star Easton Corbin (who also participated in the ‘Road_to_the_Ram®_Jam’) to celebrate their strong sales. Sales have been building for Ram Truck with 48 consecutive month-over-month sales increases. And if you talk with Bob Hegbloom, director of the Ram Truck brand, that success sits clearly on the shoulders of the newly formed Ram Commercial brand.

"When you think about what we've accomplished since creating the Ram Truck brand just five short years ago and the constant introduction of new trucks, new features and new technology, you can see why our dealers are so excited," said Hegbloom over the noise of the House of Blues crowd. "A lot of this is about what a huge difference Ram Commercial has made … we launched the brand-within-a-brand at the end of 2012, and that's really given our fleet and commercial buyers a whole new set of options."

With the addition of the ProMaster full-size van and the ProMaster City small work van coming later this year, Hegbloom said Ram Commercial is one of the biggest reasons Ram is enjoying such retail sales success.

Vehicles like the Ram 4500 and 5500, the ProMaster and even the Ram Cargo van have allowed potential buyers to choose from a wider selection of more efficient, problem-solving vehicles for their businesses. Giving those customers a chance to do all their fleet updating in a single showroom, Hegbloom said, is one of the big reasons why Ram is experiencing solid growth.

"We know we have to keep this momentum going, the same way we knew we had to get the ball rolling two years ago. We think there's still plenty of opportunity on the commercial side, and we know we have to keep bringing products to the fight," he said.

With recent successes like the Ram 1500 EcoDiesel (lasting, in some cases we're told, less than a week on the dealer lots) and strong 2013 sales for the Ram 2500/3500 heavy duties, things are definitely headed in the right direction. We'll likely know more about Ram's future game plan later this summer.

Cars.com photo by Mark Williams

 

Comments

Okay so maybe some of you Ford guys don't take the 1500's seriously, but the HD's and "commercial" trucks are a whole different story. IMO this is where Ram has a lot potential for sales growth, both in HD and commercial sales. I have been increasingly seen more and more 4500 and 5500 trucks on the road, so I think commercial buyers like them. Most of the tow trucks I see around here are Rams.

Due to GM's lack of any type of competition of the Ram 4500/5500 or Ford 450/550, it's now one or the other. The Cummins power plant surely lives up to it's reputation and that alone can be a selling factor. I do agree that they've got the whole advertising thing down right. Commercial trucks is not a area that most people consider as far as sales growth goes, but I have to say I'm impressed.

@HemiMonster

Impressed?

Me thinks you might be easily impressed. Isn't the word "Commercial" just another way of saying Fleet Sales?

Ford and GM have dominated this area of sales, but where I live in central Florida I only see 1500's in the fleet arena. GM and Ford totally OWN the rest of the commercial market.

@papa jim
Fleet sales are a part of the market just like anything else. People make it out to be bad, but what is so bad about it? If companies want to buy fleets of Rams, then why not? It's better for Ram to do that than lose the sales to Ford or GM.

Because fleet sales are very low profit margin, that’s why some companies stay away from fleet sales. For example, Toyota has very low fleet sales, each tuck they sell they have higher profit margins than let’s say a fleet of 5 Ram trucks. The money could be better spent on building truck for individual consumers that produce higher profit margins.
Brands that have low fleet sales (more consumer purchases) can sell less trucks and make the same profit as a company that focuses purely on fleet sales

The world needs fleet sales though, so some brand has to produce these low profit margin trucks.

Aren't fleet sales considered bad because of the actual transaction price (ATP) that they sell for? Fleet customers expect big discounts in order to find value for their business. Ultimately the discounts are made up elsewhere, and usually the retail customer is who those costs are passed to - whether in make-up of pricing or in resale value of their product (flood the market with devalued prodfuct and no one will want to pay 'top dollar'). Quantity (volume) vs quality (resale value) is the issue with fleet sales from my perspective. I'm a GM truck guy but I show no bias towards other brands and their followers. I think it's great that RAM is seeing success because competition only makes GM work harder to provide the best product they can for their customers.

excuse me, guys, but I think the whole point of the article was that Ram's big uptick in March was in low profit/low prestige Fleet models, not Big Horns or Laramies.

They better make hay while the sun shines because the marketing impact of a story like this lasts about 2 weeks.

Feel sales in trucks are very profitable.

@John - you're right, one of the manufacturers will target this market. With my volunteer fire service, I do know that most states have purchasing departments that work with the manufacturers to provide lower cost product for government-used vehicles (think Ford Taurus & Explorer Interceptors, Dodge Charger, Chevy Caprice & Tahoe PPVs). I'd assume these state contracts are considered part of the fleet sales, just as much as to rental car companies and other big business (electric, gas & water utility companies, transportation companies, etc). I think the major stigma in fleet sales comes from the rental car companies - that's easily the most viewed fleet sales retail customers see and experience. Look at how many 1-year old cars are on the retail used car market - that's the fleet sales I think really hurt retail resale value.

Ram Jam...? Does Black Betty know about this?

- I think the major stigma in fleet sales comes from the rental car companies - that's easily the most viewed fleet sales retail customers see and experience. -

GMguy, you are exactly right. It's rental cal fleet sales which really hurts resale, and it's those sales which have thin to nearly zero profit margins. When I worked in the rental car business, the profit margins on rental cars were so thin that the dealers who supplied us didn't even bother to prep new rental vehicles for us(aside from taking the protective shipping plastic off of the hood and fenders). We had to go to the dealer, pick up the cars, take them back to the rental lot, and do the prep ourselves. Automakers and dealers simply don't make money selling to rental fleets.

There's no question that commercial and government fleet sales do not have the profit margins of retail sales, but they do have profit margins larger than sales to rental fleets.

RAM is going right direction. I can't wait for April numbers.They will crash you.

@HEMI MONSTER

I will agree with you here. The Ram 2500/3500 are a whole different story than the 1500s. They are a serious contender in the Heavy Duty market.

One things people forget about fleet sales is the even bigger lucrative business of parts sales. There are big markups on proprietary parts. It is always known dealerships do no make most of their GP in vehicles sales even selling to the public and it is parts and service that are the real money makers. Same goes for the real Heavy Duty(class 7 & 8 trucks) market that I work in.

Chevy needs to bring back their C/K & Task Force lines. An old 4500 Task Force with Chevrolet's big block would put this Dodge thing to bed.

I'm interested to see what Ram does with the next model. I really want a Ram sport but the center console is so wide it takes away a lot of leg room, that is one thing they need to fix and give the front seats more travel. I'm 6'8" and its just a bit cramped leg room wise compared to the others..

A good way to sell a RAM HD to a Ford customer, is to give them two reminders.
#1 - remember all that money spent on 6.0 & 6.4 power strokes in your fleet.

#2 - no cab removal to work on the engine.

GM is really not active in commercial trucks at the moment. Lots of rumors about future products like medium duty trucks, but nothing yet.

3rd reminder:
The Ford 6.7 doesn't require cab removal for most procedures as the 6.0/6.4 did.
4th: Fewer field repairs is an added bonus.

Lol, Papa Jim can't stand it! The April numbers won't be so close though, even with GM adding more incentives for two monthes in a row, on their trucks that are so overprised to begin with.

Lol. Chevy vs all, the Chevy cost more by 1000 $ plus per model. GM thought they would be selling better, now you can get a 1500 GM for a song.

@Joe: I totally agree, the console could be narrowed in the front area and still have as much room in the back area.

4th reminder: If it's a used 6.7 Powerstroke you're looking at, make sure it's not the one the ambulance rrcall applied to, a non ambulance can have the same issue, but Ford didn't recall the non ambulance ones. They said "suck it up, you bought a Ford, deal with it!"

Let it go Tom and learn what recalls are for. As was told to you before there's a TSB & extended warranty on the part.

The reason why only ambulances were being recalled is because this does not represent a safety issue for drivers, as this failure will *not* cause the vehicle to stop dead in the middle of the road. It will cause it to go into 'limp mode'.

Were the 2013 Ram limp mode trucks recalled? No!

Recalls are required where either the manufacturer or the NHTSA determines that safety is an issue. In the case of these ambulances, a recall is in order because suddenly entering 'limp mode' can compromise patient safety.

Educate yourself.

I own a truck equipment company. We build work trucks from Class 3 to Class 9. Ram changes their interface for upfitters every year. The support is awful. Decent trucks, but unless its just a flatbed, I'd go with the other two.

You can add me to the list of CEL issue trucks. Had my truck go into 5 mph limp mode after a DEF quality message came up and was unable to get to the dealer for 3 days. Dealer looking into it for me now, ***dealer says the 2013 DEF Cummins trucks have been giving them lots of emission problems and radio issues.*** Hope to get the truck back next Monday, i need it for hauling hay.

--------

Was in Spokane Washington when i got first message, decided to drive back to Alberta. After the 4th start up with message truck was limited to 5 mph. After about 20 minutes of this insane slow speed i called the tow truck and the dealer is paying for the tow(about 200 miles). I think they have gone overboard with electronic crap on new trucks, way too much to go wrong now, and leaving me sitting on the side of the road is a real slap in the face for a new vehicle of any brand. ***Tow truck driver said it was the 3rd 2013 Cummins truck he has towed this week .*** Oh well i'm sure it will be behind me soon, better days ahead i suspect.

http://www.cumminsforum.com/forum/2013-general-discussion/605139-check-engine-light-33.html

So according to Tom, page after page of Ram limp modes and no recall means Ram is saying to their customers, "Suck it up, you bought a Ram, deal with it!" Stay consistent.

Build a Jeep truck with a eco diesel in it and I will put a deposit on one tomorrow and wait for delivery!

Not all fleets are created equal. As previously pointed out - rental fleets are the bottom of the barrel for dealers and car companies. Rental companies buy close to cost and used sales hurt residual values of non-rental vehicles new and used.

Large commercial fleets tend to be a different animal. Profit margins are higher and usually due to the heavy/hard work performed by a commercial fleet pickup, they wear out faster and require more maintenance. Used commercial trucks tend to have little effect on the used market because they are usually worn out badly and therefore are easily separated from civilian models. My brother's company trucks tend to be so badly worn out after 2-3 years that they get sold at "as is where is" auctions. They won't let the truck leave the lot unless it is towed away.

Ram is going to bringing the noise to CHEVY in 2014, and in 2015, you Lou and Ford, are going to feel the BANG!!!!!!

When it's all said and done there can only be one sales chamption.

BANG!

COMMERCIAL SALES CHAMPION

guts
glory
Feel the bang
RAM!!!!!!!!

http://www.youtube.com/watch?v=-1ygpO-OrME

Just wait to the info for the 2015 Rams come out and you feel THE BANG!!!!!!!!!!!!!!

http://youtu.be/-1ygpO-OrME?t=33s

Ram is the only company not to reveal any info for the 2015 and I have one thing to tell you Ford and GM guys.

The 2015 RAM DIAMOND CUTTER EDITION is going to make you feel......

THE BANNNGGGGGGGGGGGGGGG!!!!!!!!

http://www.allpar.com/news/index.php/2014/04/ram-v-silverado-more-than-rebates

Of course, average incentives across an entire line don’t tell the whole story: according to J.D. Power and Associates, Ram incentives in March averaged $5,598 compared to just over $3,000 for the Silverado. But the chart below shows the latest Ram and GM information and it appears, at least in the offers they mention, that GM is paying out substantially more.

Comparisons to the Ram aren’t the only ones where GM struggles. While the Ford F-series has been the undisputed king of the pickups since 1978, GM has been able to take comfort from the fact it builds two full-size pickups and the combined sales of the Silverado and Sierra would frequently beat the F-series’ numbers. But every year since 2010, the Ford has beaten that total. In March, Ford sold 16% more pickups than General Motors.

As the post-recession growth in light vehicle sales slows, the market is getting more competitive. According to TrueCar.com estimates, even Honda and Toyota are getting serious about incentives. GM is going to have to play the game just like everyone else.

But there’s more to it than cash on the hood. Even some Chevrolet dealers are admitting they’re losing sales to the Ram for a different reason: the new Silverado is a very good truck; the Ram’s a better truck.

While GM’s heavily promoted billion-dollar refresh added a good six-cylinder engine and subtracted 250 pounds from the total weight, Chrysler has showered the Ram with features like a reasonably-priced diesel option and innovative suspensions. Chrysler also took care to improve the Ram’s interior: in the high-end models, the Ram (and the F-series) offer much nicer accommodations.

The truck market is one of the toughest. Brand loyalty among pickup owners is higher than in any other market segment but sales results show the Ram is steadily chipping away at the Silverado’s base and it will take more than rebates to slow it down.

All of the comments from the Rambo Motard Goat Herder's tribe makes the linkage to country music appropriate.

The sound of "Duelling Banjos" with each of their posts is a dead give-away to skip over.

The cut and paste post by Hemi may be a blatant attempt at trolling but it does indirectly address the 800 lb gorilla in the room.

Ram sales have improved dramatically but it is more likely related to GM's weak 2014 products.

http://m.jems.com/article/news/ford-recalls-over-3000-ambulances

@K: doesn't look like it goes into limp mode, from reading the article, it STOPS RUNNING, and you may wait an hour for it to restart. That's worse then limp mode, isn't it?

My my my, Ford just loves those TSBs. "Tell them to gap their spark plugs different....(Ecoboost) we will try this to fix it....

So why not recall ALL the Super Dutys with the issue? Wait for it to happen? Oh joy!

I drive a Ford now, it aint all its cracked up to be. My high mileage Camry put it to shame. The Focus corners good, and good passing power, torque sucks and the interior is comming apart. Everyday it's a new rattle.

When it's all said and done.

There can be only one.

BANG!

2015 Ram is coming for you.

http://www.youtube.com/watch?v=-1ygpO-OrME&feature=youtu.be&t=33s

@ Ram Guys
Won't the 2015 Rams be the same as the 2014 Rams? What will change? I would think since the F-Series are making big changes right now 15 F-150 and 16/17 Super Duty the chances of catching them right now are a long shot. You haven't really caught GM yet as the GMT's still sell more than 100,000 units than Ram by years end.

All the rules and pre conceived notions have been thrown out the window.

When you are in this business you go after the biggest dog in the yard. That dog was GM. And just like the diamond cutter, GM didn't see the 2014 Ram coming. Ram and wiped out the 2014 Chevy.

The 2015 Ram is coming out next to finish the job.

Feel the bang!!!!!!


@LouBC, 6.4L HEMI Reengineering the Elements

http://www.youtube.com/watch?v=YMEqIOiyVgg

Ram trucks are getting a lot better while GM/Chevy do nothing. If not for Ram, ford wouldn't have upped their HD ratings by as much as they did. With regards to the 2015 f150, ford overhypes the f150 to much. Most people hauling that much should be getting a HD truck. The 2016-2017 Super Duty is a long way away. Just wait for the 2017-2018 HD Rams.

I use to own a fiat ram and I didn't have to worry about mileage, rattles or the interior coming apart because it sat at the dealer all the time. Everytime I turned around it was something different. The guys at the shop knew me by first name and I actually became good friends with one of them and his wife. He was the one who helped me get rid of it and told me to never buy another one and I won't!

@Hemi V8

Do you believe in unicorns? I've never seen one--so I'll believe it when I see it.

Same with the Ram 1500 diesel. I hear about them but I have not seen one.

But the Double Cab hemi is flying off the lots with wild financing deals and leasing options.

But still waiting to see the diesel.

@truck crazy
It's funny how people like you will come on here and invent any story that will help suit your agenda.

@papa jim
The diesels will come. They aren't intended to be as mainstream as the Hemi and they demand outweighs supply right now. There haven't been enough sold yet to really expect to see any driving around. Over the last couple months I have really just started noticing the '14 GM trucks around. I hadn't seen too many on the road before that. It takes awhile for there to be enough out there to notice them.

@ALL1, Lou and others
Okay so you want to address Ram recalls? Are you sure you want to open up that can of worms? Lets address your "elephant in the room". I will do so using the facts.

Fact 1 - Ram has had a noticeable number of recalls. Funny thing about recalls is they are visible to the public eye. Recalls are transparent. Recalls ensure the consumer has a safe and reliable vehicle.

Fact 2 - There is no such thing a "perfect" truck. Every single truck will have issues, will have repairs, will have regular maintenance, will have quirks. Anyone who owns a vehicle for more than 2 or so years at a time is aware of this.

Fact 3 - All automakers have recalls.

Fact 4 - Some automakers attempt to avoid recalls. Some automakers hide issues for many years and pretend they are non-issues as is the case with the recent GM recall.

Taken into consideration the FACTS that there is no perfectly reliable truck and that recalls are transparent, what is so bad about recalls? Recalls are an improvement, they are positive. Yes they point out the flaws in a specific vehicle, but that's a good thing. I would much rather have a vehicle with flaws that were fixed, instead of driving around a vehicle for many years (GM) that had issues that were never dealt with.

You guys can paint the picture any way you want it, but the FACTS are that Ram is improving quality, they are full of transparency and they care about the customer. We have had this debate before and I am getting tired of people who accuse us Ram guys of hiding issues or refusing to discuss such things. Simply not true, in fact quite the opposite. I believe this debate was settled long ago, but some feel the need to rehash it on every Ram or recall article.

@Ad: it's not years end yet. Don't forget Ram is already ahead of both GM trucks in Canada.

We have seen thw new Gm full sizers, no worries staying ahead of those. We haven't seen the 2015 Rams, so who knows. If Ram just changed a few things, GM wouldn't be close at all.

Rumor was the 2015s would be different. But they are quiet about it now, sell more trucks, talk about it in June or July.

Lets see, higher production of Ecodiesel, make regular cab 6'4" bed lighte models, add some payload (would bet it happens on next model) lighten trucks up some, maybe a better design on console, more torque or mileage or both from the hemi 5.7 (unchanged since 2009) more torque mileage or both from the 3.6, either bigger shifter buttons, or same shifter on steering wheel the Charger has....Those are just a few ideas.

But we already know what GM has, their cards are all on the table not that strong of a hand.

@papa Jim: the diesels are out there. I looked at an already sold, awaiting pickup, 4x4 crew Tradesman last week. I wished I coulda drove it. That's Arkansas.

Sandman 4x4 says he drove one, he's on the northeast cost.

Maybe if you drove more then 5 miles a day. Let me guess, the Ram dealership is 6 miles and you can't make it there?

And what about payload. Nobody wants to talk about F150 payload ? Strange.

Ford fans, come out to play.

http://www.youtube.com/watch?v=NwwY9y6O3hw

@TRX 4 Tom
I would like to see the Hemi get to 400hp and 420lb ft but I would think that would take an almost new engine from the ground up sharing nothing more than displacement and a few bolts. Wouldn't those changes be a hard kept secret like the fact that the Hellcat was known to be in development for years.

For crying out loud can someone tell me why my favorite car a Hemi Charger cannot be had with an 8-speed?

Ram v. Silverado: More than rebates

complete analysis

http://www.allpar.com/news/index.php/2014/04/ram-v-silverado-more-than-rebates

The 2015 Ram is coming out next to finish the job.

Feel the bang!!!!!!

Posted by: HEMI

I'm confuse so is the bang when the nuts and bolts come undone in the rear diff, or is it when your head slaps the steering wheel cause the back tires locked up? :)

@HEMI MONSTER

Why was I in that long Fact list post? I said nothing about recalls or anything of the sort. The only thing I said in thei article was.....

"@HEMI MONSTER

I will agree with you here. The Ram 2500/3500 are a whole different story than the 1500s. They are a serious contender in the Heavy Duty market.

One things people forget about fleet sales is the even bigger lucrative business of parts sales. There are big markups on proprietary parts. It is always known dealerships do no make most of their GP in vehicles sales even selling to the public and it is parts and service that are the real money makers. Same goes for the real Heavy Duty(class 7 & 8 trucks) market that I work in. "

.....so why was I flamed for that?

@hemimonster- Didn't invent that story. Its true. Funny how some people come on here and think they know it all when in fact they don't know sh#@.



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