Stellantis is evaluating whether to move production of its heavy-duty Ram trucks from Mexico to the United States as automakers adjust to U.S. tariffs on imported vehicles. The potential shift could reduce Ram’s exposure to vehicle import tariffs, although higher labor costs would also factor into the decision.
Stellantis Evaluates Michigan Production
U.S. tariffs on imported vehicles have changed the American automotive landscape since they were imposed last year, prompting automakers to rethink production strategies while trying to remain competitive and profitable.
Stellantis is among the automakers considering increased U.S. production, particularly for its heavy-duty Ram trucks currently built in Mexico.
Citing executives at two suppliers who asked not to be named, the report said Stellantis has requested cost estimates to determine whether moving production from the Saltillo Truck assembly plant in Mexico to the Warren Truck assembly plant in Michigan would make business sense.
The move could lower Ram’s exposure to vehicle import tariffs but potentially increase labor costs. Nissan has faced a similar market dynamic with the Sentra and Kicks, although those affordable models operate with tighter margins than highly profitable heavy-duty pickups.
Ram Could Follow GM and Ford
A production shift to Michigan would bring Ram’s heavy-duty trucks closer to the manufacturing strategy already used by General Motors and Ford. Both automakers build their heavy-duty trucks in the United States.
Toyota has also announced a $3.6 billion investment to bring production of the Mexico-built Tacoma to Texas by 2030. Those moves could strengthen the case for Stellantis to shift heavy-duty Ram production to the U.S.
The Warren Truck plant previously built the older-model Ram Classic. After that model was discontinued, the factory became underutilized, although it continues to produce the Jeep Grand Wagoneer.
Major Investment Could Be Required
Moving heavy-duty Ram production to Michigan would require significant investment, according to the report. That consideration comes as the future of the United States-Mexico-Canada trade agreement remains unclear.
Trade tensions have already disrupted Stellantis’ production plans. The company redirected production of the next-generation Jeep Compass from Brampton, Canada, to Illinois.
Ram HD Production Decision Remains Preliminary
Stellantis has not made a decision on whether to move heavy-duty Ram production to the Warren Truck plant. The exploration remains preliminary as the automaker weighs the potential costs and benefits of a production shift.
The Ram HD lineup consists of the 2500 and 3500, which are designed for heavier-duty work than the light-duty 1500. The trucks are available with either a 6.4-liter Hemi V8 or a 6.7-liter Cummins turbodiesel inline-six.
The 6.7-liter Cummins turbodiesel is now also available in the off-road-oriented 2500 Power Wagon for 2027.
