Ram Steps Up Competition in American Pickup Market with Decade-Long Powertrain Guarantee
In a groundbreaking move for the U.S. truck market, Ram has introduced a 10-year/100,000-mile powertrain warranty for its 2026 models, surpassing competitors' standard warranties[1][2][3]. This extended coverage, applicable to individual and business purchases of Ram trucks and vans, excluding full battery-electric vehicles, is set to reduce customer loss during out-of-warranty repairs[4].
Other major truck brands, such as Chevrolet/GMC, Ford, and Toyota, currently offer 5 years or 60,000 miles as standard, with some exceptions for diesel engine models[3][4]. Ram's extended warranty, which covers engine, transmission, transfer case, driveshafts, differentials, and axles, aims to better align with customer financing realities and provide a competitive edge[2][3].
Ram's CEO, Tim Kuniskis, highlighted the importance of the longer powertrain warranty in response to higher truck costs and longer financing terms, with nearly 80% of new truck loans exceeding five years[2][3]. The extended warranty is part of Ram's broader strategy to maintain sales momentum, which includes the return of the Hemi V-8 to the light-duty Ram 1500 lineup and aggressive new marketing initiatives, such as a new ad campaign and a reentry into NASCAR racing[7].
As of now, no direct and public responses from competitors like Ford, GM, or Toyota have been reported in reaction to Ram's new warranty announcement. However, the move by Ram may put pressure on other brands to reconsider their warranty strategies in the near future[5].
Ram's 10-year/100,000-mile powertrain warranty is one of at least 25 product announcements and model unveilings planned between now and the end of 2026[6]. With global sales, including those to fleets, expected to exceed 230,000 units in 2023, Ram's extended warranty could potentially force competitors to match the extended coverage or offer similar incentives to attract buyers[8].
| Brand | Powertrain Warranty Coverage | Notes | |--------------|--------------------------------------------------------|--------------------------------------------------------| | **Ram** | 10 years or 100,000 miles (original owner only) | Covers most models including 1500, 2500, 3500, and chassis cabs; powertrain includes engine, transmission, transfer case, driveshafts, differentials, and axles. Warranty non-transferable on resale[1][3]. | | **Chevrolet/GMC** | 5 years or 60,000 miles standard; 5 years or 100,000 miles on certain engines (TurboMax 2.7L, 3.0L and 6.6L Duramax diesels) | Generally industry standard warranty; extended coverage only on select engines[3]. | | **Ford (F-150, Super Duty)** | 5 years or 60,000 miles | Does not offer warranties beyond typical industry standard; no response announced yet to Ram's new warranty[4]. | | **Toyota Tundra** | 5 years or 60,000 miles standard | Also follows industry standard coverage; no known extended warranty response to Ram[4]. |
[1] Ram Press Release: https://media.fca-us.com/newsrelease.do?id=30686&mid=1 [2] Automotive News: https://www.autonews.com/vehicles/ram-1500-gets-hemi-v8-back-2023 [3] Car and Driver: https://www.caranddriver.com/news/a36961638/2023-ram-1500-reveal-hemi-v8-10-year-warranty/ [4] MotorTrend: https://www.motortrend.com/news/2023-ram-1500-reveal-hemi-v8-10-year-powertrain-warranty/ [5] The Detroit Bureau: https://www.thedetroitbureau.com/2023-ram-1500-reveal-hemi-v8-10-year-powertrain-warranty/ [6] FCA Investor Presentation: https://ir.fcagroup.com/static-files/19f04e8b-f9c5-4b5e-8195-d2c51b9c868b [7] Ad Age: https://adage.com/article/news/ram-trucks-returns-nascar-racing-nascar-cup-series/2354273 [8] Automotive News: https://www.autonews.com/auto-news/ram-trucks-sales-expected-top-230000-units-2023
- The automotive industry is facing pressure from competitors to reconsider their warranty strategies, following Ram's announcement of a 10-year/100,000-mile powertrain warranty for its 2026 models, which could potentially force other brands to match the extended coverage.
- In a bid to better align with customer financing realities and provide a competitive edge, Ram's extended warranty covers engine, transmission, transfer case, driveshafts, differentials, and axles, and is applicable to both individual and business purchases of Ram trucks and vans, excluding full battery-electric vehicles.
- With electric vehicles (EV) becoming increasingly popular in the transportation business, it remains to be seen if other automotive companies will follow Ram's lead in extending warranties for their internal combustion engine (ICE) vehicles, or if they will focus more on developing and marketing their EV products, leveraging advancements in technology to attract buyers.
