Ram CEO Hints at New Engine; Forecasts Segment Growth

LOS ANGELES – Ram President and CEO Fred Diaz is optimistic Chrysler’s new Pentastar 3.6L V-6 engine will bolster sales in the 1-ton truck segment, where consumers increasingly are making fuel economy a top purchase consideration.

The auto maker has not confirmed officially that the engine will make its way into the Ram pickup, but Diaz hints that’s the case. “I think it will be a big addition to the truck,” he tells WardsAuto in an interview here.

Ram light-duty pickup sales up 25.0% through October.

Former Chrysler powertrain chief Paulo Ferrero told WardsAuto in May that the engine will migrate next year to the Ram fullsize pickup.

Horsepower and torque output vary by application, but in the ’12 Jeep Grand Cherokee the 3.6L V-6 produces 290 hp and 260 lb.-ft. (353 Nm) of torque and achieves 16/22 mpg (14.7-10.7 L/100 km) city/highway.

Should the fuel-economy numbers prove similar in the Ram, it would become a competitor to the Ford F-150 equipped with a 3.5L direct-injected turbocharged EcoBoost engine, which produces 365 hp and 420 lb.-ft. (569 Nm) of torque and is rated at 15/21 mpg (15.6-11.2 L/100 km) city/highway.

“In the light-truck market, MPG is a big story and is big on consumers’ minds,” Diaz says.

The new engine would help Ram in a segment the executive says is poised for growth. Pickup sales faltered during the recession, but pent-up demand is driving consumers back to showrooms, he says.

Through October, fullsize pickup sales in the U.S. were up 9.5% to 1,191,625 units, according to WardsAuto data. And Ram sales outpaced the light-vehicle segment, climbing 25.0% through the year’s first 10 months to 193,063.

“I feel the truck market is going to continue to grow,” Diaz says. “I’m not sure how the economy is going to affect us. But assuming that’s not going to scare people too much, I certainly see the pickup market (growing) at a steady pace.”

Ram growth could be helped by a growing public awareness of its split from the Dodge brand nearly two years ago. Dodge, now focused largely on cars, still is associated with Ram by some customers, Diaz admits.

“How long were we Dodge Ram? A gazillion years,” he says. “So to make that separation, it’s going to take time. But we’re a helluva lot further along the way than two years ago.”

The brand’s repositioning has allowed Ram to focus on improved interiors and better marketing that is drawing the attention of truck buyers, Diaz says.

Dealers are on board with the brand repositioning. “Two years ago, I never thought we’d have the orders we have coming in on Ram trucks right now,” he says. “Dealers vote with their orders.”

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