Chrysler – which is now managed by Fiat – is going to spin off the Dodge Ram as a stand-alone product line. The full plans for the new Ram brand are being given to the U.S. government today, and The rumor is that the Ram brand will make it easier for Fiat to manage the marketing of the Chrysler brands. Here’s what the new Chrysler landscape is supposed to look like:

  • Ram becomes the truck brand of the company
  • Dodge becomes the performance brand, perhaps sourcing vehicles from Alfa Romeo (in addition to Fiat)
  • Chrysler moves more towards the luxury brand that Daimler wanted it to be all those years ago
  • Jeep keeps on keepin’ on

While this new brand alignment sounds smart, Chrysler is still in serious trouble. There’s no assurance that the government bailout is going to save Chrysler – analysts universally agree that Chrysler has serious problems, including poor quality, a lack of R&D, and a strong likelihood that Chrysler vehicles won’t be able to meet new fuel economy regulations in the coming years.

So what about selling off the Ram brand down the road?

After all, Fiat doesn’t know pickups. The current Ram is a solid pickup that’s selling reasonably well, and Fiat might not be able to follow-up on the next-gen Ram with the same level of success. It’s entirely possible that the current Ram will be the best Ram ever, and that future Fiat versions of the Ram won’t be as successful. The rule is to sell high, right? Why not cash out now while the Ram is a top choice?

Selling Ram would allow Fiat to focus on what they’re good at (cars), and they wouldn’t have to worry about fuel economy regulations. Nissan would probably be very interested in buying Ram…and they’ve got the product portfolio to balance out the Ram’s low fuel economy numbers as regulations get tighter.

Another reason to sell Ram is that, unlike Jeep, the future of the Ram is a little cloudy. Tough fuel economy and emissions regulations are making it harder to make money with pickups. Trucks aren’t going to be the cash cow they once were.

If you add it up -

  • Fiat isn’t really a truck company
  • Ram is never going to be more valuable than it is now
  • The Ram brand’s long-term value is in question because the truck market is changing

and it seems very possible that Fiat could sell Ram. Maybe not next week, but if they need cash in 2010 or 2011, the option is probably going to be on the table.

Bottom line: Splitting off Ram might just be a marketing move right now, but it also makes getting out of the truck market that much easier if Fiat struggles to save Chrysler.

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