Full Breakdown
Stellantis Discontinues Ram 1500 REV Electric Truck Amid Slowing Demand
9/15/2025, 2:04:37 AM
Discontinuation of the Ram 1500 REV
Stellantis has officially announced the discontinuation of its Ram 1500 REV electric truck, citing a significant slowdown in demand for full-size battery electric vehicles (BEVs) in North America. The decision follows a series of delays for the truck, which was initially unveiled at the 2023 New York Auto Show and was expected to compete with established models like the Ford F-150 Lightning and Chevrolet Silverado EV. Stellantis stated that it is "reassessing its product strategy" in light of these market conditions.
Market Context and Challenges
The electric truck market has faced numerous challenges, including high costs compared to internal combustion engine (ICE) vehicles and a lack of consumer interest in leasing options for trucks. Data from Edmunds indicates that while approximately 10% of ICE truck buyers lease their vehicles, around 54% of EV truck buyers do. This discrepancy highlights the unique purchasing behavior of truck consumers, who often prefer ownership due to the utilitarian nature of trucks.
Ivan Drury, director of insights at Edmunds, noted that the loyalty-based market for trucks complicates the transition to electric models. He emphasized that the high costs associated with EV trucks have deterred many potential buyers, particularly as federal EV tax credits have diminished.
Ram's Strategic Shift
In place of the fully electric Ram 1500 REV, Stellantis will now focus on a range-extended electric vehicle (REEV) model, also named the Ram 1500 REV. This vehicle will utilize a gas engine to generate electricity for the battery, allowing for extended range capabilities. The Ram 1500 REV is expected to offer impressive towing and payload performance, with a launch anticipated in 2026.
The pivot reflects a broader trend in the automotive industry, where several manufacturers, including Ford and Honda, have scaled back their EV ambitions in response to shifting market dynamics. Stellantis' new CEO, Tim Kuniskis, acknowledged the need to adapt, stating, “We screwed up” regarding previous decisions to phase out popular engines like the Hemi V8.
Implications for the Electric Truck Market
The cancellation of the Ram 1500 REV underscores the challenges facing the electric truck segment, which has not met the high expectations set by manufacturers. As automakers reassess their strategies, the focus is shifting towards hybrid and range-extended solutions that offer a balance between electric driving and traditional power generation.
Critics have pointed out that Stellantis' decision may reflect a lack of foresight regarding market demand for electric trucks. Some industry observers have expressed concerns about the viability of range-extended models in meeting future emissions standards.
Verbatim Quotes
- “– As demand for full-size battery-electric trucks slows in North America, Stellantis is reassessing its product strategy and will discontinue development of a full-size BEV pickup.” — Stellantis Statement
- “It's like they overpromised and underdelivered,” — Ivan Drury, Director of Insights at Edmunds
Conclusion
Stellantis' decision to discontinue the Ram 1500 REV and pivot to a range-extended model highlights the complexities of the electric truck market. As consumer preferences evolve and infrastructure challenges persist, the future of electric pickups remains uncertain. The automotive industry will continue to adapt, seeking solutions that align with both market demand and regulatory requirements.
