Chrysler’s Smaller Ram Cargo Van to Take on Nissan, Ford

Chrysler Group LLC is expanding its Ram ProMaster line of cargo vans with a smaller model that will compete with Ford Motor Co. (F), Nissan Motor Co. (7201) and other automakers for business drivers looking to replace older models.

Chrysler plans to reveal the 2015 ProMaster City today as the Auburn Hills, Michigan-based company anticipates total annual U.S. sales of commercial vans of about 400,000 over the next five years, according to an e-mailed presentation. Small vans like the ProMaster City, which mimics parent Fiat SpA (F)’s Doblo model, will account for about a quarter of those, the third-largest U.S. automaker said.

The van, Chrysler’s latest small-commercial vehicle, will tap “pent-up demand” from delivery, construction and other businesses to replace aging models in an improving economy. May’s jobless rate held steady at 6.3 percent as employers added workers. And with 131.7 cubic feet (3.7 cubic meters) of cargo space and other features, the ProMaster City should stand out, Dave Sullivan, an analyst with AutoPacific Inc., said.

“At first glance, this van might appear to be a copy of the Nissan NV200 or the Ford Transit Connect,” he said. “It’s not.”

An improved rear suspension creates a more comfortable ride and a longer wheelbase offers more space, Sullivan said.

Offered in two-seat and five-seat models, the van has a 178-horsepower engine and a nine-speed automatic transmission. It’s the first vehicle in its class to offer the latter feature, Chrysler said.

Ford, Nissan

Ford sold 4,222 Transit Connect cargo vans in May, a 14 percent jump from a year earlier and the Dearborn, Michigan-based automaker’s best sales month ever. Nissan, the No. 2 Japanese automaker, reported 1,203 deliveries of its NV200 model during the same period, almost quadruple the number from a year earlier.

Ram’s original ProMaster, unveiled in 2013, sold 1,033 units in May, after beginning U.S. sales in October. Its C/V sold 768, a 21 percent drop from a year earlier. Both are Class 1 vans.

“Years ago, the selection of delivery and cargo vehicles was limited and those offerings didn’t focus on cost of ownership,” Reid Bigland, president and chief executive officer of the Ram brand. “Today all of that has changed with the recent introduction of the full-size Ram ProMaster and now the Ram ProMaster City.”

To contact the reporter on this story: John Irwin in Southfield, Michigan at jirwin25@bloomberg.net

To contact the editors responsible for this story: Jamie Butters at jbutters@bloomberg.net Niamh Ring, John Lear

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