Rising gas prices and a sagging economy have hit the full-size pickup segment hard, but the Dodge Ram may be hit the hardest. A combination of slow sales, expensive gas and an upcoming all-new 2009 model have led dealers to substantially discount their existing inventory.
According to Automotive News, Dodge dealers currently have a 109-day supply of 2008 models sitting on lots across North America. Considering production of the redesigned '09 Ram begins in approximately 4 months, there's not a lot of time for dealers to move the excess inventory to avoid hurting the new model's sales.
Moving such a supply could be easier if full-size pickups were in demand, but that seemingly isn't the case in 2008. Sales of the trucks were down 22.1 percent in April from 2007, and are also down 16.6 percent for the first third of 2008. Things are especially tricky for the Ram, which - in comparison to GM's revised offerings and a new Ford F-150 for '09 - is rather dated.
As a result, dealers are slashing prices across the board in order to move the inventory. Automotive News found what may be an extreme example: a dealership in California was offering a Ram 1500 Quad Cab SLT 4x2 for $19,995. Considering the sticker price for the truck is $32,795, that's a whopping $12,800 - or 40% - off the normal price. On average, incentives for the Ram run around $8,000.
Chrysler representatives claim the phase-out of the '08 Ram is "on schedule," and that the rebates are high merely because the Ram is more expensive than competitors. Be that as it may, dealers worry the incentives and inventory may slow sales of the '09 model upon its launch.
Source: Automotive News