Stellantis Is Counting on This Brand to Soar in North America -- Huge Profits on the Line

Struggling automaker Stellantis (NYSE: STLA) is doing just about everything it can to turn its business around, and it's putting up a $70 billion plan to overhaul its lineup. It's introducing a long list of more affordable models, doubling down on powerful V-8 engines while backing off some of its electric vehicle (EV) ambitions, and working to reclaim lost market share and profitability.

A crucial part of the overall turnaround plan involves returning its North America market to a profit engine while funneling more investment into Jeep and Ram to lead the charge. If Stellantis' turnaround gains traction, investors are well positioned to enjoy a rising stock price over the next few years -- but is it a buy now?

Big plans for Ram

Stellantis has shed roughly half its value over the past three years alone, and for investors to be rewarded with a turnaround and soaring stock price, Ram needs to gain traction in North America. The good news is Stellantis is sending reinforcements in the form of three new pickups in the coming years, with hopes to drive Ram to its top-selling brand by the end of the decade.

Image source: Stellantis.

Ram's first challenge has Ford Motor Company's Maverick in its crosshairs. The Ram compact pickup will be based on the Ram Rampage sold in South America and is targeting a 2028 launch. The compact Ram won't be alone, either, as a planned midsize truck built in Ohio is also expected to hit the roads in 2028. Stellantis had to dig through storage to bring back the Scrambler nameplate that hasn't been used since the 1980s, and will use that for a Jeep Wrangler-based pickup. Stellantis also plans to use the Ramcharger name for a new full-size Ram SUV.

All in all, Stellantis is working to grow Ram's North America sales 60% higher by the end of 2030, which would place it ahead of Jeep as the biggest brand in the region with around 825,000 sales. Taking it a step further, Stellantis also aims to make Ram "No. 2 in trucks" by the end of the decade, which would be a tall task considering the history of sales dominance between Ford and General Motors' full-size trucks. Remember that Ram had been comfortably in third place in the U.S. pickup sales race but dropped to an embarrassing fifth in 2025.

"Our plan for North America is very simple: Get the product right," said Tim Kuniskis, who heads the company's American brands, according to Automotive News. "Right for the market, right for the brand positioning, right for segment expansion, right for growth and right to recover our customer loyalty."

Ram will be a key part of Stellantis' North America turnaround, but the automaker is investing about $25 billion in Ram, Jeep, Chrysler, and Dodge, giving consumers 11 new vehicles by the end of the decade. Management anticipates those brands growing North America volume by 35%, returning Stellantis to 8% to 10% margins in the region after losing $2 billion in North America last year, and becoming a profit engine for the company's global turnaround.

What it all means

Investors likely understand by now that SUVs and trucks haul a huge chunk of automakers' bottom line, especially Detroit automakers. While it costs only marginally more to produce a truck than a passenger car, the former can command far higher prices and lucrative margins. For Stellantis' turnaround to really gain traction, investors need Ram's new launches to regain lost market share and bolster the bottom line.

For investors hoping to make a buck on a Stellantis turnaround over the next five years, Ram is one of the most crucial pieces of the puzzle. Stellantis may have the most upside in the auto industry through the end of the decade, but investors are taking on sizable risk as the automaker has a long list of problems to fix.

Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool recommends General Motors and Stellantis. The Motley Fool has a disclosure policy.