RUMORS: Stellantis Will Expand Ram 1500 Production To Mexico

According to multiple sources, including our own, the fifth-generation Ram 1500 (DT) pickups will soon be produced at the Saltillo Truck Assembly Plant (STAP) in northern Mexico, alongside the current production at the Sterling Heights Assembly Plant (SHAP) in suburban Detroit. The move follows the recent conclusion of the fourth-generation Ram 1500 Classic (DS) production, which took place at STAP and the Warren Truck Assembly Plant (WTAP), also in Michigan.

Historically, the Saltillo plant has focused on building Ram’s Heavy Duty lineup, including the Ram 2500, 3500, 4500, and 5500, and the Regular Cab 1500 Classic and Crew Cab Classic models for international markets. With the transition of production, STAP is expected to take on a larger role in building the DT trucks for export to markets such as Brazil—Ram’s second-largest market—Latin America, Asia, and Europe.

As Stellantis prepares to launch electrified versions of the Ram 1500, including the Ram 1500 REV and Ramcharger, the company has designated SHAP as the exclusive production site for these models. The Ram 1500 REV is a fully electric pickup with a 350-mile range, driven by dual electric drive motors (EDMs) that produce 654 horsepower and 620 lb.-ft. of torque. It also has a substantial towing capacity of up to 14,000 lbs. The upcoming Ramcharger, which combines a smaller battery pack with a Pentastar V6 engine acting as a generator for extended range, is expected to offer up to 690 miles of range.

The expansion of production in Mexico has become a point of discussion among the United Auto Workers (UAW), especially after WTAP’s production of the Ram 1500 Classic came to an end, reducing the plant’s workforce to just one shift. WTAP currently produces the premium Jeep® Wagoneer and Grand Wagoneer (WS) SUVs, with plans to add 4xe models of both vehicles in late 2025, using powertrains similar to the Ram 1500 Ramcharger.

Stellantis has not publicly explained why the production of the electrified Ram models is focused at SHAP instead of utilizing WTAP, which is nearby and has available capacity. However, industry analysts suggest that the decision may relate to labor costs and the 2023 UAW agreement, which included significant wage increases for workers. “There’s fear across the board,” said Kevin Gotinsky, the UAW’s lead bargainer for Stellantis, at a recent union rally in suburban Detroit. “The shift is everything out of this country.”

The labor agreement, which the UAW described as the richest in its history, has raised concerns about increased manufacturing expenses for Stellantis. Like others in the industry, the automaker is facing pressure from rising costs and competitive market conditions. Stellantis is making strategic adjustments to balance its production footprint and maintain competitiveness.

The company stated on Tuesday that “Ram trucks would continue to be made at its Sterling Heights Assembly Plant and that ‘no other announcements have been made about [the] production of the Ram 1500.” Furthermore, Stellantis has committed to a $235 million investment at the Michigan plant to support the production of future electric pickup models. “The investment will bring innovations to the plant to support a multi-energy approach that is laser-focused on meeting customer demand,” the company said.

The decision to add production at STAP comes at a time when Stellantis is facing a decline in U.S. market share and a drop in stock value, with shares down 45% this year. Stellantis CEO Carlos Tavares has been under pressure to reverse this trend, which in part led to a recent profit warning. As the company navigates the challenges of a competitive market, high interest rates, and fluctuating demand, the shift of some Ram 1500 production to Mexico is seen as a strategic move to maintain production efficiency while managing labor costs.

While SHAP will remain the hub for electrified Ram 1500 models like the REV, STAP’s role in the production of the Ram 1500 for international markets is expected to grow. Ram recently announced plans to launch the 2025 Ram 1500 (DT) pickups in European and Latin American markets, with the Ram 1500 REV scheduled for export to Europe in the third quarter of 2025. 

It remains unclear whether STAP will handle additional production of the Ram 1500 RHO or if that model will remain exclusively produced at SHAP.