Automotive News Canada - June 2024 - 10

10
06.24
OPINION
No Hemi for Ram?
Are they crazy?
RAM 1500 PICKUP SALES VOLUME IS
so significant that even slight variations
can move the needle for the entire
Canadian market.
So when 75.5 per cent of Rams allocated
to Canada in 2023 had Hemi
V-8s under the hood (see story on Page
8) and then said Hemi is dropped in
favour of a six-cylinder, I can be excused
for thinking the company has lost all its
marbles.
After two
decades
equating Ram
with Hemi, not
all buyers can
be rewired
to connect
with the new
Hurricane
six-cylinder.
The third-generation
Hemi arrived two
decades ago, tugging
on the nostalgia heartstrings
of buyers who
fondly remembered the
7.0-litre Hemi that ruled
the streets in the late
1960s and early '70s.
The third-generation
engine was fully modernized,
of course, and
it underwent continual
updating to increase
performance.
Most significantly, it
gave Ram fans something to crow
about for the next two decades. " Hey!
That thing got a Hemi. "
Not for much longer. Stellantis said
it's moving to a twin-turbocharged
six-cylinder for 2025 that will be better
on fuel than the Hemi, produce lower
emissions and have more power.
There's a lot riding on the new
engine, called the Hurricane, but not
just because it's replacing the Hemi.
The kicker is that Ram will not have any
V-8 at all, while the competing Ford,
GMC and Chevrolet pickups still do.
General Motors is particularly reliant
on its 5.3- and 6.2-litre offerings, while
Ford has been pushing its EcoBoostbranded
turbocharged V-6 engines
alongside the 5.0-litre V-8 for nearly 15
years.
Hindsight being what it is, that's
probably what Ram should have been
doing: getting customers used to the
Hurricane being sold alongside the Hemi
for a few years instead of such a big
switch all at once. I think Stellantis waited
too long and what happens next,
instead of being predictable phaseout,
is really anyone's guess. It's an unnecessary
risk.
There is a way out, or a way forward,
though. Assuming the trauma of losing
the Hemi doesn't push buyers to the
EDITOR-IN-CHIEF
JEFF
MELNYCHUK
competition - the one thing we know
for certain is that pickup buyers are loyal
to their brands - Stellantis made sure
the Hurricane has more grunt than the
Hemi, which can't be ignored.
The 5.7 is rated at 395 horsepower
and 410 pound-feet of peak torque.
The base 3.0-litre Hurricane makes 400
horsepower and 450 pound-feet, and
that juicy torque peak likely comes in
much lower in the rev range where it
matters for pickups. Just in case that's
not enough, the high-output version is
rated at 540 horsepower and 521
pound-feet.
Although the Hurricane has only half
the displacement of the Hemi - hence
the better potential fuel economy, especially
on the highway - turbocharging
provides better-than-Hemi power on
demand.
This is not a new concept. Consider
the Ford EcoBoost and even GM. A few
years ago, I drove a GMC Sierra with
the 5.3-litre V-8 and then another Sierra
with the turbocharged 2.7-litre four-cylinder.
Guess which had better throttle
response and midrange power. The
four-cylinder.
" I mean ultimately, what truck buyer
doesn't want more performance? I
would just encourage customers to drive
[the Hurricane]; they'll be happy, " said
Scott Pollock, general manager of Peel
Chrysler-Jeep-Dodge-Ram-Fiat in
Mississauga, Ont.
An excellent point, indeed, but will
the Hemi faithful get it? Can their brains
be rewired to connect with the
Hurricane?
When the EcoBoost was introduced,
Ford pounded home durability and
power, said Robert Karwel, senior manager
of the Canadian automotive practice
at J.D. Power.
" I think Ram's challenges are slightly
greater than Ford's, just because Ram
and Hemi have been linked together for
so long. But it's certainly not insurmountable. "
It
really shouldn't have come to this,
but we're about to find out. - ANC
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Chaos reigns as sector
navigates choppy EV shift
NEW-VEHICLE SALES IN CANADA MIGHT BE
recovering from their pandemic lows, but things feel
chaotic in auto land as the industry tries to find its
footing in the electric vehicle transition.
Automaker after automaker is pressing the pause
button on EV production and launches as consumers
on both sides of the border appear to
be shying away from electric vehicles.
Ford,
for example, recently
announced a two-year delay in the
production of large EVs at its
Oakville, Ont., plant. General Motors
has informed Unifor it is " reassessing "
the timing of production of EV
Caught in the
uncertainty are
dealers, many
of whom have
heavily invested
in upgrading their
stores for EV
customers.
motors at its powertrain plant
in St. Catharines, Ont. And
Volkswagen says it is delaying
the launch of the ID7 electric
sedan, which was supposed to
arrive in showrooms in the
United States and Canada in
the third quarter.
That consumers are balking
at buying EVs doesn't surprise
Brian Kingston, president of the
Canadian Vehicle
Manufacturers Association,
which represents the interests
of the Detroit Three. " The transformation to electrification
in the automotive industry will not follow a linear
path, there will be ups and downs along the way, " he
said. " The fact is that EV adoption is directly correlated
to affordability and charging infrastructure availability.
Boosting EV demand depends on strong consumer
purchase incentives and the rapid construction of a
comprehensive, convenient and reliable charging
network. "
MACALUSO
MANAGING EDITOR
GRACE
Caught in the uncertainty are dealers, many of
whom have heavily invested in getting
their stores EV-ready. In some
cases, automakers are looking to
their dealer networks to help offset
the multibillion-dollar costs of producing
EVs and building a whole new
supply chain, straining relations that,
in the best of times, aren't always
harmonious.
Honda Canada dealers, for instance, have pushed
back against company moves to cut their profit margins,
joining forces with the Canadian Automobile
Dealers' Association, which has threatened legal
action against the automaker.
Retailers said the company framed the margin
reduction - that will be rolled out starting with the
battery-electric 2024 Honda Prologue, followed by the
2025 model-year lineup - as part of Honda's transition
to electric from internal-combustion-engine vehicles.
Honda
Canada President Jean Marc Leclerc,
meanwhile, has pledged to work with dealers " to find
a solution. "
Yep, the entire industry is engulfed in a whole lot
of problem-solving during an EV shift that could make
challenges brought on by the COVID-19 pandemic
look like a cakewalk. - ANC
Stellantis executives abandon ship
amid a slow leak years in the making
IT'S OBVIOUS. THE GOOD SHIP
N.A. Stellantis is sinking - N.A.,
as in North America.
Five key
executives
have left in
five months,
and dealers
complain
they have no
affordable
vehicles.
PUBLISHED MONTHLY BY CRAIN COMMUNICATIONS, INC.
KC CRAIN, GROUP PUBLISHER & CEO
JEFF MELNYCHUK, EDITOR-IN-CHIEF, 506.866.8236, Jeff.Melnychuk@autonews.com
GRACE MACALUSO, MANAGING EDITOR, 226.787.0441, Grace.Macaluso@autonews.com
GREG LAYSON, DIGITAL AND MOBILE EDITOR, 519.567.8877, Greg.Layson@autonews.com
DAVID KENNEDY, TORONTO BUREAU CHIEF, 416.712.1378, david.kennedy@autonews.com
EMMA HANCOCK, HOST AND CONTENT STRATEGIST, 647.921.3543, emma.hancock@autonews.com
TIM DIMOPOULOS, MANAGING DIRECTOR/PUBLISHER
416.560.7663, tim.dimopoulos@autonews.com
ADVERTISING SALES
MATT PARSONS, 313.446.5866, mparsons@autonews.com
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CHRISSY TAYLOR, VICE-PRESIDENT EDITORIAL OPERATIONS, AUTOMOTIVE NEWS GROUP
KC CRAIN, PRESIDENT & CEO
KEITH E. CRAIN, EDITOR EMERITUS
I have spent the better part of
two months speaking with
Stellantis dealers, general managers
and sales staff. I wrote stories
about the end of
the Ram 1500
Classic and legendary
Hemi
engine. I have
spoken with
countless folks in
the Stellantis retail
realm, from coast
to coast to coast.
They're angry,
" like an old man,
trying to send
back soup in a
deli, " as George
Costanza once said in an episode
of " Seinfeld. "
Their grievances:
* No product. Chrysler has a
minivan - a few versions - but
only a minivan. Dodge has very
few vehicles. The brand is clinging
to the Durango. It has the Hornet.
And the all-new Charger is about
to arrive.
* No affordability. The Pacifica
minivan - and not the once-renowned
$19,999 Grand Caravan
Canada Value Package - starts at
$53,215, including shipping.
Full disclosure: My father
assembled Chrysler and Dodge
products for 30-plus years.
Needless to say, my vehicles have
often been the same brands.
Aside from my first car being a
DIGITAL AND
MOBILE EDITOR
GREG
LAYSON
1986 Pontiac Firebird, everything
else was something from a precursor
of Stellantis. I started with the
entry-level Dodge Stratus, moved
to a Jeep Patriot, then a Chrysler
Town & Country and now a Ram
1500 Classic. I climbed the ladder
- one that now seems to be
missing the bottom rung, perhaps
even the second.
And it's not as if dealers just
started complaining. I recall shopping
for the Town & Country and
hearing grumbles about the end of
the Chrysler 200 sedan, an affordable
entry-level vehicle.
I also had one dealer recently
tell me he hadn't received a visit
from a Stellantis regional manager
since before the COVID-19 pandemic.
Another dealer, who sells
multiple brands, said a lack of
interaction contrasts with
Stellantis' competitors, including
one whose regional manager
makes a point of frequent meetings
- with donuts!
While I was talking to Stellantis
dealers, general managers and
newly minted Stellantis Canada
chief Jeff Hines, I was posting story
after story online about high-ranking
North American company executives
jumping ship.
The exits began in January
when Stellantis North America
COO Mark Stewart became CEO of
Goodyear Tire and Rubber Co.
Since then, and in no particular
order, Tim Kuniskis retired as CEO
of Dodge and Ram, former
Stellantis Canada boss Jason
Stoicevich quit after two months
as U.S. retail sales
chief and Richard
Schwarzwald
resigned as chief
customer experience
officer.
The most
recent to leave
was Jim Morrison,
who hails from
Fredericton, N.B.
The former Jeep
North America
boss was shuffled
to a parts position
in December and
then retired at the
end of May.
That's five
execs in five
months.
But those
might not be the
Mark Stewart,
former
Stellantis
North
America
COO, was
the first of
many execs
to abandon
the good ship
Stellantis
since the
start of the
year.
FILE PHOTO
most troubling numbers.
First-quarter U.S. sales were
down 9.6 per cent, with sales of
Ram trucks down a whopping 26
per cent. In Canada, sales were
down 19.8 per cent.
Executive changes in any industry
aren't uncommon, but the
revolving door in Auburn Hills,
Mich., makes it clear that
Stellantis N.A. is taking on water.
- ANC

Automotive News Canada - June 2024

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