Doing the Tariff Math
The U.S. tariffs on imported vehicles have changed the American automotive landscape since they were imposed last year. Automakers have been forced to respond and rethink their strategies to stay competitive and, of course, profitable. Stellantis is one of the automakers currently considering moving production to the U.S., particularly its heavy-duty Ram trucks built in Mexico.
Such a move would reduce Ram’s exposure to vehicle import tariffs, though it could come at the cost of higher labor. That’s a market dynamic Nissan has faced with the Sentra and Kicks, but the situation is a little different given that those affordable models have tighter margins than highly profitable heavy-duty pickups.
Automotive News, citing executives at two suppliers who asked not to be named, reported that Stellantis has requested cost estimates to assess whether shifting production from the Saltillo Truck assembly plant in Mexico to the Warren Truck assembly plant in Michigan would make business sense.
A Familiar Formula Is Emerging
Moving production to the U.S. would also align Ram with General Motors and Ford. Both rivals already build their heavy-duty trucks stateside, while Toyota has announced a $3.6 billion investment to bring production of the Mexico-built Tacoma to Texas by 2030. These moves could strengthen the case for such a shift.
The Warren Truck plant used to build the older-model Ram Classic. Its discontinuation left the factory underutilized, although it still builds the Jeep Grand Wagoneer.
However, other considerations remain before heavy-duty Ram trucks can earn “Made in the USA” badges. The report said that building them at the Michigan plant would require significant investment. That is especially relevant given that the future of the United States-Mexico-Canada trade agreement remains unclear. Trade tensions have already disrupted Stellantis’ production plans, with next-generation Jeep Compass production redirected from Brampton, Canada, to Illinois.
A Costly Decision Still Looms
Whatever the outcome, one thing’s for sure: American buyers have a strong appetite for pickup trucks, so Stellantis must play its cards right. The exploration remains preliminary, with no decision made.
The Ram HD lineup consists of the 2500 and 3500, designed for heavier-duty work than the light-duty 1500. They are available with either a 6.4-liter Hemi V8 or a 6.7-liter Cummins turbodiesel inline-six – the latter now available in the off-road-oriented 2500 Power Wagon for 2027.
