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ATECO Group has just racked up 1117 locally converted Ram truck sales in the first half of the year, proving the point that there is a healthy and presumably lucrative market for full-size American pick-ups in Australia – when the price is right.

Under its American Special Vehicles subsidiary, which contracts Walkinshaw Automotive in Melbourne to remanufacture the Ram pick-ups from left- to right-hand drive, Ateco initially failed to meet its early target of 50 sales a month or 600 a year – later revised downwards – when only the high-priced ($140,000-plus), heavy-duty 2500 and 3500 versions were available.

In two-and-a-half years of trading, Ram Trucks Australia only passed the 50-a-month mark once, in 2017’s December rush, and its overall sales performance since launching in November 2015 had cast some doubt over the expensive conversion program’s viability – 292 units in 2016, 398 in 2017 and just 100 in the first half of 2018.

But the introduction of the 1500 version in August last year, which came a couple of months after Ateco took full control of what was previously a joint venture with Walkinshaw, sent the baseline below $80,000 and finally put the vehicle within reach of ready and willing buyers. Lots of them.

The impact was immediate, with the August launch month securing 79 Ram pick-up truck sales (47 1500s) and the period from August to December averaging 117 a month, 82 per cent of which were for the new, more affordable model.

Word soon gets around as the super-sized utes start making their presence felt on the road as well as on the scoreboard, and this year new registrations have steadily increased to an average of 186 Ram sales a month, with 987 examples (or 88 per cent) of the 1500 truck from the 1117-unit total.

June was a record month with 262 sales – 244 of them 1500s – that was fuelled by Ateco’s move to add a third shift at Walkinshaw’s Clayton South facility (which also remanufactures the Chevrolet Silverado 2500/3500 in a separate venture) for around-the-clock production five days a week to satisfy demand both in Australia and New Zealand.

The figures place the Ram operation ahead of forecast, with executives at the 1500’s launch targeting 2100 sales this year – based on the new model accounting for 85 per cent.

Helping matters was a model-year update introduced in March, although we think its success can be boiled down to the basic fact that the 1500 taps into a rich vein in Australia that involves a love for, and aspiration to own, a large, imposing, supremely comfortable, highly equipped, practical and powerful vehicle.

It naturally stands out from the hordes of medium-sized pick-ups, has a lusty V8 petrol engine under the bonnet, a braked towing capacity of up to 4500kg, local engineering and production ties with the same mob who churned out Aussie-built HSVs, ‘factory appointed’ status and close connections back to Fiat Chrysler Automobiles in America (including warranty support), and various other bases covered via a national dealer network and parts and accessory warehouses.

Desire: The Ram 1500 taps into a rich vein in Australia that involves a love for, and aspiration to own, a large, imposing, supremely comfortable, highly equipped, practical and powerful vehicle.

Most importantly, the $80,000 entry ticket makes the 1500 a genuine alternative to the top-spec, accessorised mid-size 4×4 utes in the market, luring prospective buyers into Ram showrooms who, upon signing, are often driving out with a higher-tier version.

VFACTS figures show a relatively even split between the entry 1500 Express ‘Quad Cab’ and the more expensive 1500 Laramie Crew Cab, which foregoes a longer tub for more interior space and extra equipment and starts from $99,950 – a touch under the psychological $100K barrier.

No less than 565 Laramie variants have found homes this year, compared to 422 Express versions.

This compares to 130 examples of the 2500/3500 range, which is up 30 per cent on the same period last year and looks to be a direct result of the increased foot traffic in dealerships, with buyers stepping up to the heavier-duty versions when they might not have previously considered owning a Ram at all.

Ateco is not standing still, with a diesel engine now available on the 1500 – initially in Laramie guise from $109,950, but with the Express in line to receive the ‘EcoDiesel’ V6 turbo if there is sufficient demand.

Beyond this year’s 2100-unit target, which has not been derailed with a slowing economy that has seen 4×4 pick-up sales slip 1.2 per cent against an overall industry downturn of 8.4 per cent, Ateco plans to keep on doubling Ram sales with a target of 4500 set down for 2020.

The only thing that looks like potentially stopping the Ateco-Ram juggernaut in its tracks is FCA itself, with the auto giant evaluating the case to build the fifth-generation DT-series 1500 – which is available overseas – in right-hand-drive from the factory, which would likely see FCA Australia taking control and send Ateco back to square one with 2500/3500 only.

But there are no signs of this occurring, and apparently plenty of life still left in the fourth-generation DS-series 1500 model that Ateco is now pumping out in right-hook guise around the clock, so let’s see just how big this Ram behemoth can get.

By Terry Martin

 

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