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Extended Loans, Short Warranties? Ram Says ‘Not Anymore’

Americans are holding onto their vehicles longer than ever before, and automakers are starting to pay attention. A new report shows that the average age of cars and light trucks on U.S. roads has climbed to a record 12.6 years. That’s two months older than in 2023, and an astonishing 1.5 years older than the average in 2012.

This long-term ownership trend has created a mismatch in the auto industry. Most new vehicles still come with just a 3-year/36,000-mile warranty—less than a quarter of the average vehicle’s lifespan. Ram CEO Tim Kuniskis thinks that’s not just outdated—it’s “stupid.”

Speaking at a recent media briefing, Kuniskis argued that extended warranties are no longer a luxury but a necessity. “Nearly 80% of new truck loans now exceed five years,” he pointed out. “If something goes wrong after the warranty ends and the owner is still making payments, they might never return to that brand—and they definitely won’t recommend it to anyone else.”

That’s why Ram is making a bold move with its 2026 lineup. Starting next year, every new Ram truck and van will come standard with a 10-year/100,000-mile limited powertrain warranty. The coverage includes crucial components like the engine, transmission, transfer case, driveshafts, differentials, and axles—parts that can cost thousands to repair.

There are some fine print exclusions. The extended warranty only applies to original owners—individuals and businesses, but not fleet buyers. And it’s not a bumper-to-bumper guarantee. But considering the high cost of drivetrain repairs, the warranty could offer substantial savings and peace of mind.

Industry analysts are calling it a smart play: good for marketing, great for customer satisfaction. As Kuniskis summed it up, “Our customers are making a long-term investment in Ram, and with America’s Best Full-size Truck Limited Powertrain Warranty, Ram is making a stronger and longer commitment to our customers.”

However, there is one notable exception. The new warranty won’t apply to full battery electric vehicles—most notably, the upcoming Ram 1500 REV. While Ram hasn’t elaborated on the reasoning, the exclusion signals a cautious approach to EV commitments within its warranty strategy.

Still, for the majority of traditional truck buyers—many of whom plan to keep their vehicles for a decade or more—Ram’s extended warranty offers something rare in the auto industry these days: real, long-term value.

Source: Ram

News

Mitsubishi Joins Growing List of Automakers Raising Prices Amid Tariff Pressure

Mitsubishi has become the latest automaker to announce a price increase as the industry grapples with the ripple effects of trade tariffs and inflationary pressures. Beginning tomorrow, the Japanese carmaker will implement an average price hike of 2.1% across its vehicle lineup.

The company attributes the increase to its “regular and ongoing review of pricing” designed to keep its models competitive within their respective segments. However, industry observers believe this move is a direct response to rising import tariffs, particularly the 25% levy on automotive imports first imposed under the Trump administration.

Notably, the price adjustment will not be applied retroactively and will exclude vehicles already on dealer lots—good news for buyers who act quickly.

The price revision will affect popular models such as the Outlander and Eclipse Cross. The Outlander, which currently starts at $29,645, will see its base price rise to approximately $30,268—an increase of $623. Meanwhile, the smaller Eclipse Cross will go from $26,545 to roughly $27,102, representing a $557 jump.

Although these changes may appear modest, they underscore a broader industry trend: manufacturers are increasingly passing on at least some of the cost burden from tariffs and supply chain challenges to consumers. Analysts suggest Mitsubishi may still be absorbing a significant portion of these costs, but further increases could loom if trade tensions persist.

Mitsubishi‘s pricing decision comes shortly after the company resumed vehicle deliveries to dealerships—a process that had been temporarily halted due to tariff complications. The resumption, coupled with the latest price adjustments, signals that Mitsubishi may no longer be expecting a swift resolution to ongoing trade disputes.

With this move, Mitsubishi joins a growing roster of automakers adjusting their pricing strategies. Ford recently raised prices by up to $2,000 on several of its Mexican-made models, including the Maverick, Bronco Sport, and Mustang Mach-E. Subaru has also bumped prices across most of its lineup, with increases ranging from $750 to $2,055. Even niche manufacturer Ineos has taken similar steps.

As the global automotive industry continues to adapt to an unpredictable economic and political landscape, consumers can likely expect more pricing changes in the months ahead.

Source: Reuters

News

Are EU Green Rules Killing Affordable Cars?

Developing a new car for the European market has become a daunting task — not because of innovation demands, but due to the overwhelming pressure of regulatory compliance. As the European Union tightens its grip with ever-stricter rules on emissions, safety, and noise, automakers are warning that excessive bureaucracy is threatening not just vehicle affordability, but also the future of sustainable mobility.

John Elkann, Chairman of automotive giant Stellantis and also of Ferrari, revealed to Automotive News Europe that over a quarter of an engineer’s time at Stellantis is now spent solely on making vehicles compliant with EU rules. “If you look at our engineers, more than 25 percent just work on compliance, so no value is added,” Elkann stated, highlighting the mounting cost — both in labor and innovation.

The burden is only expected to increase. By 2030, cars in Europe will be required to emit an average of just 49.5 grams of CO₂ per kilometer — nearly half the target for 2025–2029. From 2035 onward, new vehicles emitting any harmful substances will be outright banned, marking a total phase-out of combustion engines.

While this legislation aims to steer Europe toward a greener future, it’s also pushing many vehicles — particularly smaller, more affordable ones — off the roads. Rising costs have forced automakers like the Volkswagen Group to discontinue compact city cars such as the VW up!, Skoda Citigo, and SEAT Mii. In 2019, over one million vehicles priced below €15,000 were sold in Europe. Today, that number has shrunk to a mere 100,000.

Elkann sees a solution in looking east — to Japan. He’s advocating for a European version of the Japanese kei car, a class of ultra-compact, lightweight vehicles that make up about 40% of Japan’s market. “There’s no reason why if Japan has a kei car… Europe should not have an E-Car,” he argued.

Former Renault CEO Luca de Meo echoed the sentiment, criticizing the current trend of oversized electric SUVs. “Driving around every day in an electric vehicle weighing 2.5 tons is clearly an environmental nonsense,” he noted earlier this year.

Despite the growing dominance of crossovers, some brands are succeeding with smaller offerings. Dacia, Renault’s no-frills budget brand, has carved out a 5.1% market share in the EU this year, thanks in large part to the lightweight and affordable Sandero. Even its SUVs remain relatively light, with the Bigster maxing out at just 1,400 kilograms.

The core dilemma is clear: in trying to build the greenest cars, regulators may be steering the market toward heavier, pricier models, inadvertently sidelining the very goal of reducing emissions. For many consumers, the choice will become either unaffordable electrics or keeping older, polluting vehicles longer — the opposite of what EU policy intends.

As calls grow for a more flexible, tiered approach to regulation — particularly one that fosters small, efficient urban vehicles — the question remains: will European lawmakers loosen the rulebook to make room for an “E-Car”? Or will red tape continue to strangle innovation and affordability in the name of progress?

If the future of European mobility is to be both green and accessible, something has to give.

Source: Automotive News Europe

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