Stand-by for price war on US pick-ups in Australia

The cost of US pick-ups – which are selling at record levels in Australia – could soon get sharper after years of price rises as the number of competing brands doubles from two to four.

Increased competition between Ram and Chevrolet – and the imminent return of Ford and arrival of Toyota full-size pick-ups – could soon start a price war.

Most US pick-ups currently cost between $100,000 and $150,000 in Australia – about twice the prices offered in North America, due to expensive local remanufacturing programs that convert the vehicles from left- to right-hand-drive.

When asked if Ram head office in the US would support local market leader, Ram Trucks Australia, with sharper prices, the global boss told Drive at the New York Auto Show overnight: 

“Now that some of our competitors are coming back, it’s going to get real interesting,” said Ram boss Mike Koval.

“For sure, we have a strong working relationship … open, transparent. Their success is our success, and vice versa.

“We work together if there are challenges … one of the things we always have to do, we have to ensure competitiveness in the marketplace.

“We will always have those conversations. Our doors are always open.”

Ram Trucks Australia recently increased prices of some models by up to $10,000 at the start of the year, citing the increased cost of manufacturing and shipping.

Chevrolet pick-ups have also had a series of price rises over the past two years in Australia.

However, both Ram and Chevrolet each have only about 50 dealers nationally – compared to Ford (160) and Toyota (230) – which makes their sales vulnerable to the new arrivals.