We need to talk about the brand new Ram Dakota. During a recent media event, my friend Tim Kuniskis confirmed the new Ram Dakota nameplate. However, he also dropped a massive bombshell regarding the cost. Specifically, he stated that the new Ram Dakota will cost an eye-watering $40,000. Naturally, people online were immediately pissed off at this news.
On the surface, that price sounds incredibly steep for a mid-size truck. However, people fail to realize why $40,000 will not be expensive in two years. In fact, my investigation proves he is unfortunately right. Therefore, we must break down the inflation data immediately. Ultimately, a $40k price tag for a mid-size Ram Dakota might be average.
The Inflation Reality Check
Many enthusiasts are reacting emotionally to the price announcement. For example, they look at the current market and see cheaper options. Currently, the Toyota Tacoma starts around $33,000. Meanwhile, the Ford Ranger sits at approximately $36,000. In addition, the Chevy Colorado is priced around the $35,000 mark. Consequently, a $40,000 starting price for the Ram Dakota seems ridiculous today.
However, we must look at where the market is going. This truck is not arriving in dealerships tomorrow. Instead, it is scheduled to arrive around 2027. If you look at pricing graphs, mid-size truck prices are trending upward. Specifically, they are creeping toward that $40,000 average by 2027. As a result, Tim Kuniskis was basically right.
By the time the Ram Dakota arrives in two years, competitors will cost more. For instance, the Ford Ranger will likely cost almost $40,000. Similarly, the Colorado base price will creep up to that number. Also, the Tacoma will probably be closer to $40,000. Thus, Ram is simply pricing the vehicle for future market conditions.
Why The Original Dakota Died
To understand the future, we must look at the past. The original Dakota was a cute mid-size truck back in 2009. However, I never really saw the point of that truck. It was almost the same size as a Ram 1500. Furthermore, dealers were aggressive about upselling customers.
Dodge dealers would try to push you into the Ram 1500 immediately. This happened because the Generation 4 Ram 1500 launched around 2009. You simply could not get more truck for the money compared to a Dakota. If you added a few options to the Dakota, you entered Ram 1500 price territory. Consequently, the full-size truck was a superior vehicle overall.
The Generation 4 Ram 1500 was a massive success. It literally built Ram’s brand into a powerhouse. Whether competing against full-size or mid-size trucks, it dominated sales. From 2009 to 2018, that truck generated massive sales figures alone. It was the workhorse of the brand. As a result, the original Dakota faded away because the full-size value was too good.
Ram’s Current Struggle
The situation today is quite different. However, Ram has gotten into trouble over the last four years. This decline started largely after the merger with Stellantis. Personally, I place Ram’s current problems on cost. When new leadership arrived, they jacked up prices across the board.
They increased costs for the vehicles people actually bought. Specifically, the Ram 1500 saw a huge price spike. Since then, Ram sales have gone downhill. Currently, Ram is in “fallen empire mode.” Therefore, they must get competitive with prices again. This is why the Ram Dakota pricing strategy is so critical.
Engine Specs and The Death of Pentastar
Executives discussed price, but they didn’t really talk about the drivetrain. However, we can make strong assumptions based on timelines. By the time the Ram Dakota enters production, the Pentastar V6 will likely be gone. In fact, UAW contract negotiations revealed that the Pentastar ends production by 2028.
Therefore, the new Dakota will likely feature the 2.0L Turbo or the Hurricane engine. This would mimic the powertrain found in the new Grand Cherokee. We could see an inline-four Hurricane engine producing around 300 horsepower. Alternatively, they might use the 2.0L GME engine found in the Wrangler.
There is also the possibility of a high-performance variant. For instance, a “Baby TRX” version seems inevitable. Given the Ranger Raptor and Colorado ZR2, Ram needs an answer. This off-road version would likely cost around $60,000. Furthermore, it would probably feature a high-output Hurricane engine.
We could see a 420-horsepower Hurricane engine in that truck. This would provide more horsepower than the Bronco Raptor. However, I do not see a V8 option happening. No other vehicles in this segment are keeping V8s. Consequently, the new Dakota will be a Hurricane powerhouse.
The Hard Truth About Pricing
Ultimately, $40,000 is likely the best price we will see. I would love to see mid-size trucks return to the $30,000 range. However, graphs show that vehicle prices always get more expensive. Unfortunately, this is a “car thing.” Vehicle prices go up, but they do not go down.
This differs from consumer products like televisions. For example, new TVs are expensive upon release. However, manufacturing improves and prices drop over time. You can now buy big-screen TVs for a couple hundred dollars. Unfortunately, that same trend does not apply to cars. Ram has to follow the market.
In conclusion, the $40,000 Ram Dakota is the new normal. It might be a bitter pill to swallow. However, compared to where the Ranger and Tacoma are heading, it is simply market standard. We will see if the market accepts it in 2027.
