Global Trends and Politics
Ram To Offer Industry Leading Pickup Truck Warranty
Introduction to Ram Trucks’ New Warranty
Ram Trucks plans to introduce an industry-leading warranty across its 2026 vehicle lineup this year as part of an 18-month turnaround plan for the Stellantis-owned brand. The warranty covers the engine, transmission, transfer case, driveshafts, differentials, and axles for 10 years or 100,000 miles, whichever comes first.
The Need for a Longer Warranty
The new warranty comes as vehicles — especially pickup trucks — have grown more expensive in recent years, which often results in longer financing that extends far beyond the warranties of the vehicles themselves. Ram CEO Tim Kuniskis said, "Eighty-five percent of truck buyers finance for seven years or more. They keep it for 12 years because everything’s gotten more expensive. But you know what hasn’t changed? No one has changed the warranty. They’re investing more and more and more money in your brand, but you’re not investing more money to protect them."
Industry Comparison
Edmunds.com analysts report that 84-month loans for new-car buyers hit an all-time high of 19.8% during the first quarter, while another 67.4% of new-vehicle financing loans were between 60 months and 75 months. Ford Motor and General Motors’ GMC and Chevrolet brands — the leading sellers of full-size pickup trucks ahead of Stellantis — as well as Toyota Motor currently offer five years or 60,000 mile limited powertrain warranties on their gas-powered full-size pickup trucks. Some diesel models offer higher warranties.
Benefits of the New Warranty
Kuniskis believes the new offer will help with retaining current customers, attracting new ones, and potentially regaining former owners who may have left the brand in recent years. "We think this is going to be a significant move in the right direction," said Kuniskis, whose brand has experienced a roughly 38% sales decline since record results in 2019. "It’s going to be the best truck warranty in the business."
Future Plans
Kuniskis said the 100,000-mile/10-year warranty offer might be extended past this year, pending acceptance and popularity among customers. "If the reception is good, our full intention is to keep it going after the end of the year," Kuniskis told CNBC during a recent interview.
Risks and Rewards
Offering longer-term warranties can cost automakers billions of dollars if mass-produced vehicles end up having quality problems, but Kuniskis said the rewards outweighed the risks. "Warranties always have inherent risk in them," he said. "What we determined, though, was that the perceived value from the customer outweighs what our increased cost is going to be."
Applicability and Exclusions
The limited powertrain warranty is applicable to the original owner of 2026 model-year Ram trucks and vans, including its chassis cab lineup. It includes retail purchases and leases to individuals and businesses, and excludes fleet purchases as well as its Ram Promaster electric van.
Conclusion
Ram Trucks’ new warranty is a significant move in the right direction, offering customers protection and peace of mind for a longer period. With the increasing cost of vehicles and longer financing periods, this warranty is a welcome change. While there are risks involved, the rewards outweigh the costs, and the brand is committed to making it work.
FAQs
Q: What is the new warranty offered by Ram Trucks?
A: The new warranty covers the engine, transmission, transfer case, driveshafts, differentials, and axles for 10 years or 100,000 miles, whichever comes first.
Q: Why is Ram Trucks introducing this new warranty?
A: The new warranty is introduced to provide customers with protection and peace of mind for a longer period, given the increasing cost of vehicles and longer financing periods.
Q: How does the new warranty compare to the industry standard?
A: The new warranty is industry-leading, offering 10 years or 100,000 miles of coverage, whereas the industry standard is typically 5 years or 60,000 miles.
Q: Is the new warranty applicable to all Ram Trucks models?
A: The limited powertrain warranty is applicable to the original owner of 2026 model-year Ram trucks and vans, including its chassis cab lineup, but excludes fleet purchases and the Ram Promaster electric van.
Q: Can the new warranty be extended past this year?
A: Yes, the 100,000-mile/10-year warranty offer might be extended past this year, pending acceptance and popularity among customers.
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