Home » REO Says It Will Build A $21,500 Truck For The Masses, I Spoke To The CEO To See If They’re Legit

REO Says It Will Build A $21,500 Truck For The Masses, I Spoke To The CEO To See If They’re Legit

Reo Top 2

There’s been a lot of talk lately about upcoming new cheap pickup trucks, and if that’s somehow a bad thing, that’s news to me. The recent craze likely started with Ford’s Maverick, which, as you may recall, hit the market a few years back with a starting price – for the base hybrid model – of under $20,000. It now starts at over $26,000, but realistically is likely about $30,000. That’s also the target price of Ford’s upcoming new small electric truck, and we now believe that the Slate electric single-cab pickup is going to start at just under $25,000. There’s clearly a movement of sorts happening at the bottom end of the market, and a recent addition to this movement has been a mysterious new player, REO.

REO popped onto the scene out of seemingly nowhere, and has been the subject of all sorts of speculation. The fundamental concept of REO seems to be much the same thought process that many of us had when learning about the Slate EV truck for the first time; specifically, the thought that this would be fantastic if there was a cheap gasoline version as well. That seems to be what REO is offering: a simple and straightforward single-cab four-cylinder pickup truck with a manual transmission that they believe will sell for a very appealing $21,500.

Vidframe Min Top
Vidframe Min Bottom

The name of this still-hypothetical truck, the REO Runabout, may sound familiar to all of you automotive history geeks, because it’s a name with some real history. REO stands for Ransom Eli Olds, the man who earlier gave his name to Oldsmobile, founded in 1897 and famous for their Curved Dash Olds, what was really the first mass-produced car, even before the legendary Model T.

Rreo 1906 Ad
Source: Wikimedia Commons

Olds left Oldsmobile in 1905 to found REO, which is where the Runabout was born. The name of this new company is indeed taken from this long-defunct marque. How, though? And why? And who?

Understandably, there’s been a lot of questions and skepticism around this upstart hopeful carmaker, and many people, having been burned many times before by attempted startup car companies that promised cheap cars like Elio that came to nothing (or lost people money), or companies with daring goals like Local Motors, which also ended poorly. So why should anyone get their hopes up? And who is behind all this, anyway?

As you’d expect, people did some digging online and found who was behind REO: a real estate broker named Zach De Bernardi. For many, this was not encouraging news:

Now, it’s one thing to just say something “looks suspicious” and a very different thing to, you know, actually try to find out. So that’s what I did. I reached out to Zach De Bernardi by phone, and was happy to find that not only did he take my call, he spoke quite enthusiastically to me for about 45 minutes.

I’m going to give you the most interesting parts of our discussion here, and I just flat-out asked him how real all of this actually is. I’d encourage you to read the whole interview, but if you want a bit of a synopsis, I found De Bernardi to be a genuine gearhead who seems to be doing this not as some sort of scam, but because I get the sense he really wants to start a new company to make cheap, internal combustion pickup trucks.

Reo T4x

Well, not just pickup trucks; the basic platform they’re developing will become a single-cab pickup (the T4X/Runabout), a double-cab pickup, and an SUV. And since I know you’re all wondering, yes, they say they do have rights to the Speedwagon name, though it’s not yet decided what that will be used for. Perhaps an F-150-scale truck, I was told?

Anyway, I think this guy is for real. That doesn’t mean this will all work, of course. Starting a carmaker is incredibly difficult, and nothing is certain. But I got the feeling the intent is genuine here, and I liked a lot of what I was told. So let’s let De Bernardi tell you about REO himself.

This Is Happening Because The Removal Of Corporate Average Fuel Economy ‘Makes It Possible’

JASON TORCHINSKY: I’m just going to get right into it, Zach. How did all this start?

ZACH De BERNARDI:  So, I got to thinking that [the elimination of penalties for violating CAFE standards for cars and trucks] opens up the ability for a Slate analog truck, right? And I say analog means like a comparative, but it also happens to be analog.

JT: Yeah, that makes sense. Both kinds of “analog.”

ZdB: You know, because when you look at that community response to Slate, which is the most direct comparative, the answer is this would be awesome if it just had a four-cylinder engine, right?

JT: Yeah, I had multiple discussions with my co-founder David about just that.

ZdB: So that was really the origin for it, and the CAFE [change] makes it possible, so like that’s why we’re here. And back to the Tesla comparative, you know, I’m not doing this to fail, right? I’m doing this to be profitable, and I’m doing it for Americans, like I truly believe that they need this option.

JT: What about the REO name? Ransom Eli Olds. How did you manage to get the rights to that old marque?

ZdB: So, as far as brand was concerned, when I, when I was doing, and now we’re doing small team right now, our branding exercise is what does that look like in English? What could we name this thing? And, like, you go, like, we looked at the name Bison, right? Well, that’s taken, you know. American Expeditionary Vehicles uses that. I think GM uses that. So every word in the English language is trademarked, because that was our first lever. Like, this has to pass the trademark, right? So we, you know, we looked at acronyms, etc., and we really didn’t look at heritage because our assumption was there’s no way that heritage is even going to be on the table because it’s going to be used, but as we got deeper into the process, you know, that’s just not legally how trademarks work. You have to use them in commerce, right? Otherwise, you abandon your claim.

Okay, so Tesla had heritage when they built their brand, and they’re profitable, and so that’s what we were pursuing. How can we tell a story and bring something back, because it’s going to resonate way more than a car company with a made-up word, you know.

JT: Yeah, I see what you mean.

ZdB: And so we just started becoming students of car history more, and REO just jumped out immediately. Like the intangibles are, you know, Ransom Eli Olds invented the automotive assembly line.

JT: Of course, with the Curved Dash Olds around 1901.

ZdB: And he, you know, Ford perfected it, but Olds did it first. And the Runabout was 650 bucks. They sold it at the Waldorf Astoria, and in today’s dollars, $23-25,000 right? So that fits the narrative, and the runabout is a cool name for a tiny little car, tiny little truck. Because that’s historically what they were, something that you could run about in, and that was a common name.

So we looked, and it was, it was available. Every other company that had used it had abandoned their claims, and we snapped it up. We snapped up REO in class 12 for vehicles, and every other applicable class that’s required in order to run a direct-to-consumer automotive business. That’s why we chose that. And then I will say we have the endorsement of the R E Olds Transportation Museum. We’ve been in close contact with them, and it’s a goal of mine to continue to maintain Ransom’s heritage. I’m not interested in doing something that spurns his name. I think everything that we’re trying to do right now represents what he was trying to do.

JT: Are you going to include any little deep cuts, like actually have a curved dashboard inside the car, or anything like that?

ZdB: We want to play into heritage as much as possible, so everything like that is currently on the table that gets into the design. Do you want me to go into that, or would you rather just ask questions first?

JT: No, if you want to talk to me about design, I’d love to hear it. Please tell me.

‘It’s Not Just Joe Schmo Working On It, It’s Not AI Doing It’

ZdB: So it also is in tandem with the decision of what we did to soft launch with teasers with silhouettes. Because that’s not normal. Everything that we do is going to probably be not normal, because the car industry has just been incumbent Like an entrenched for so long, and we have the opportunity to do things differently, namely like we’re bringing a gas truck back as a startup. Yeah, like, who? Why?

JT: Yeah, startup gas company is not the thing right now. So, yeah, absolutely.

ZdB: But everyone else is wrong, and here’s why: Simple fact is 90% of new car buyers are on gas, so from a business decision, why not? It is literally the largest buyer pool. When you’re talking about the design, so we made the decision to release it like that, because no car company has ever actively designed their car at the same time that they were getting customer feedback, so that’s why our inbox is open, and X has been a great community for it so far, but you know, we’ve got hundreds of emails flooding in about the features that people want, and we actively welcome that conversation, because we’re actively designing the car right now.

And the design is being done by some fantastic pedigree. I can’t tell you who or where, but I’m on a plane to Europe tomorrow. If that gives you any idea, it’s not just Joe Schmo working on it, it’s not AI doing it, it’s not just some graphic designer that we hired. If you saw any marketplace post for that on like Behance or Art Station, that was kind of early stuff, just to kind of help us get some ideation going. But the real designers of these vehicles are household names.

JT: Interesting, that’s very interesting. Now, I noticed on the single-cab truck, it looked like you said you’re gonna have all three sides of the bed fold down, like an old Type 2 VW pickup or something.

ZdB: Steel drop side, and there’s a reason for that, because the T4x is designed such – T for truck, 4 for four wheel drive, and X for bare bones. It’s designed to be bare bones on purpose, because the primary use case for the truck is as a fleet vehicle, and I can get into other reasons why it makes sense for individuals. But when you have, so it’s a flatbed, it doesn’t have any real arch intrusions in the bed. So, what does that allow you to do? It allows you to be modular. So an enterprise company, but let’s.. I don’t know, let’s say –

JT: U-Haul?

ZdB: Let me avoid the direct comparisons, but anyone can buy it, and they can put whatever they want on it, I guess. So, yeah, you can build a food truck on it, you know? You can put a gas tank on it, you can put a water tank on it. It’s that’s why we did that. And it’s also a really common architecture internationally.

JT: Oh, absolutely. Most of the world loves flatbed dropside trucks.

ZdB: If you look at that, and the steel, the steel dropsides are just great. So, you know, we anticipate individuals to be able to build overland rigs on it, and there will be entire companies, hopefully, that start up. It’s like, just build the overland camper shell, you know, like we saw that Tacoma had that, like, four years ago, people like this is so sick. Anybody that’s handy can just do it, you know. So that’s why that one is positioned that way. And we’re looking at the pricing of that. Our decision is, like, is this necessary for the truck? If not, we’re gonna scrap it until we get to our delivered price, and then we’ll start adding features back in.

JT: Because that price will not change? That’s your goal to hit?

$21,500 For The Manual, $23,000 For The Automatic

ZdB: I can’t lock into that. My job is to do the best that we can. To hold true to that, and the $21,500, that’s for the manual. Okay, the automatic is going to be $23,000.

JT: Have you picked suppliers already for your engine and transmissions and all that stuff? Like, do you know whose engine is going in there?

ZdB: Not yet, and the reason is it’s very complicated to work around because it depends on the architecture of the engine and if it’s going to accept a transfer case, because we’re going to have a manual transfer case. And we want to prioritize port injection over direct injection due to the longevity. I’m not necessarily too concerned with gas mileage. It’s going to be pretty good. It’s a four-cylinder.

And look at what’s happening with GM with their direct injection, right? You know, you buy a mid 2000s Volkswagen product or a BMW, and you gotta replace the injectors or redo the seals, right? That’s not happening with us if we can avoid it. So we don’t have anything right now.

JT: Yeah.

ZdB: But those conversations are being worked on, it is very early. I want to be very transparent with you and with everybody. It’s early. This takes time, but we’re doing it because we believe that Americans want it.

JT: Gotcha. But it’s most likely somewhere around two liters, I would imagine? A two-liter inline four, and you want it naturally aspirated too, right?

ZdB: 2.0 to 2.7 naturally aspirated is definitely an option, because it’s going to lead to reliability, but we’re not ruling out turbos, okay? Because another thing that we are really passionate about is this is a car company for car people. So we’re looking to have unlocked ECUs.

JT: That’s great.

ZdB: And if we ship an engine with a turbo, it’s already known about the manifold locations, and everything like that, and even the simplicity of bolting a bigger one on there, for a guy who wants to do that and potentially void their warranty, they can go do it.

You know, and it really helps market the truck if we can get it into the hands of drifters or drag guys or whatever, Baja. If we can have it fit the classic Japanese gentlemen’s agreement style. Hey, everyone knows that you can put some power into this thing. We’re going to try and do that.

JT: That’s great.

ZdB: No promises, but we’re going to try.

Could You Trust ‘A Legacy Automotive Executive To Ship Something Like This To Market?’

Reo T4c

JT: Yeah, that’s exciting. Okay, so I know the biggest question is – I think our readership certainly is down with the concept–everybody wants this kind of thing, you know, analog controls, like that’s not the problem. The problem is they’ve been stung before. Why should they get their hopes up? I think that’s what they want to know. You’re a real estate developer; you don’t exactly have a background in this, like, why? Why can I tell my readers, in good faith, “everybody get excited?” Why should they believe this is something that will actually happen in a few years?

ZdB: I would ask your readers if they could trust a legacy automotive executive to ship something like this to market.

JT: Yeah, I don’t think they think that’ll necessarily happen, either.

ZdB: That’s why they can get excited, because I’m just like them. I’ve had over 30 cars in my life, and I’m 35 years old. I’ve done well in real estate. The company is funded to where it needs to be right now, so like none of those things are a concern, but I am just like your readers, and I want to build the car that they want, so that’s what we’re asking, and America needs it, that’s what we’re asking for, for them to trust us as we go, and support and support us, right? So, and what I’ve done, you know, in real estate is I’m proud of it, you know. I sold my company, which allowed me to do what I’m doing now, you know. I’ve been working on this for almost a year, you know, and ideation, so this is like my next big project, because I got burned out on real estate. I had 50 people working for me, and we sold almost $2 billion in volume, and it just wasn’t for me anymore, you know? So, why can they trust me? Is because I’m, I’m a car guy, just like them.

That’s my simple answer.

JT: Okay, I mean, there are far worse answers than that. That’s not bad at all. If I may, and like, I’m not gonna sugarcoat anything, you know what I mean? That’s just the way that it is. I mean, this is a hard business you’re getting into. It’s, you know, all of this is non-trivial, so I think everybody’s just wary.

ZdB: Oh, look, of course, like being realistic, like I want to acknowledge, like, and I had this conversation with the REO Transportation Museum Director Chris, like this is Everest, right? Like, starting a car company is like climbing Everest, and it’s not easy. I’m not doing this to fail, right.

We’re doing this to try and ship this truck, but somebody has to do it, because the American automotive marketplace needs something like this. Everybody’s just been begging for this for decades, and somebody has to do it.

JT: Gotcha. Okay. And if I may ask, a little bit about funding. Is this self-funded by you? Do you have investors? Are there any notable investors that you would want to disclose, anything like that?

ZdB: The SEC 506 B is very defensive, and I don’t want to make any statements about money right now, because I don’t want to look like I’m soliciting money, because we’re not. If that makes sense, but in terms of funding, we are funded for the stage that we’re in currently.

I have my own money in this as well. I can say that.

JT: Okay, and right now you’re just taking it’s just $25 for a reservation, is all that you’re doing for revenue right at the moment from the public?

ZdB: That’s right. Yes.

And all of that sits in its own singular deposit account that’s never touched, and if anyone wants to get a refund, they can just click on an account, they get a magic link, and subject to Stripe processing times, they get that back.

JT: Okay, got it. And this is, this is one platform, right? You’re building one basic chassis. They’re all body-on-frame, is that correct?

ZdB: Yes, sir. And the reason for that is because that’s what a truck is. A truck to me is not unibody, and it’s not a skateboard chassis, so a truck is a body-on-frame vehicle. Okay, so components, drivetrain, suspension, all those components are likely to be shared across the line from the single cab, to the double cab, and SUV. All of it will be shared. We’re targeting a solid rear axle, right now.

JT: Oh, interesting.

ZdB: And an independent front suspension.

JT: Sure, for the majority of people, independent front suspension makes sense.

ZdB: So the IFS independent front suspension will give us the best on-road characteristics, while still preserving the off-road. And especially at high speeds, if people want to juice these things up and jump them off something.

JT: Yeah, I would feel better with an independent front suspension, especially for something that you might use, someone might use as their commuter car every day.

ZdB: I mean, that’s the same architecture, like that the 4runner has, right? Huge Toyota guy, so you’re gonna see a lot of Toyota truck DNA all over this thing.

JT: I don’t think anybody would complain about that, and also, I mean, you know, the independent front/live axle rear is the basis of every muscle car, too. So, if someone wanted to make a custom smaller body, they could probably do that.

ZdB: We have had people email and ask us on social to build it in a way that accepts an LS, and you know what, I’m very, very open to that. So, if someone wants to do that, I think we’re going to look at a way to help them do that.

JT: Right, right. Just personally… Just for fun, what was your first car?

ZdB: My first car was a 1995 Champagne Gold Volvo 960 with a straight five-cylinder.

JT: Oh, the five! Yeah, that’s a good one.

ZdB: I’m pretty sure that was the engine. I was, my head was in the clouds when I was 16, but I beat the heck out of that thing, and I would drift in parking lots or find old abandoned places and drift it with my friend who had a 190e when we just used to have so much fun, but that was my first car.

But so I’ve sold like most of the fun stuff that I have, and I have a 2016 F-150 in white, Lariat long bed with a 5.0, a spacer lift and Raptor wheels and tires that I powder coated chrome … so that’s my daily right now. I also have a 2015 Q7 TDI because I like diesel stuff, and I was going to make that an overlander, but clearly I’m not going to have the time to do any passion projects or anything like that, and my passion project is now this company.

Like, I love talking about it, obviously, but like LC500, RCF, those are some of my favorite engines. I’ve had multiple new Toyota trucks, whether it’s the SUVs or the trucks. I rebuilt an RX-7 13B from the ground up, and only made 1000 bucks on that flip, but had fun while doing it, so I’ve had all sorts of things.

I’m really into every automaker except for Dodge. So, sorry, Stellantis, but you know. I’m a car guy, like this is like my life, you know, and this is my full-time job, right? This is what I’m doing.

It’s The Kei Truck ‘But For The American Market

Wallpapers Subaru Sambar 1996 1
Photo: Subaru

JT: So, you’re 100% this is, this is all you’re doing. You’re not doing real estate anymore, you’re 100% running REO, and that’s, that’s that.

ZdB: Yeah, I sold my company to my business partner over a year ago.

JT: What about diesel engines?

ZdB: I mean, you know, I love diesel. I can’t make any promises. If we could, if it could make sense, sure. You know, like just being different, perhaps we could, in the future, like once we ship this thing, we could open up some sort of program to garner the interest, and if the interest is there and it supersedes the cost of, you know, the regulations of going through the EPA testing with the engine, so on and so forth. Then perhaps, you know, just the diesel emission stuff is such a pain in the butt with the EGR and the DEF, and just so much. But if we can, I would like to.

You know, and speaking on powertrains, like this is yes, we’re doing gas, and I’m going to try and do gas for as long as possible, but that doesn’t mean we’re not going to do anything else, right?

This could also bring back some American manufacturing, so, but if the administration changes, I would probably bet that more green initiatives would be reinstated, and things like the cafe laws could come, the fees could come back, and that could see us ship a hybrid, you know, so we have to be very flexible on how we do it, you know, but like, if I can meet with them, can we make exemptions for cars that are under a certain size, because if you look at just the amount of fuel that’s spent on the ratio of CAFE and the you like the square footage of the wheelbase and having to ship bigger engines, like doing that actually cost more fuel, even though you’re having like, so like when you have an F-150 like mine, it’s just massive, right, especially with the long bed, you’re getting worse mpg and. You’re actually spending more fuel than if you were to, if CAFE were to allow a small four-cylinder that happened to get 25 to 28 mpg, so you know, if we could push Washington to change the exemption on that, I think that would be good for us, and it would be good for all automakers.

And that’s what I call this truck  – we’re calling it like the America segment, the Kei truck but for the American market. We eat more cheeseburgers, so we’re bigger. It’ll be bigger. That’s kind of our thinking on that.

JT: That’s an interesting way to consider this, so like an American Kei kind of concept here, like you want to have a new low end segment that people can buy and use on the roads anywhere and all that?

ZdB: Exactly. And that’s what the T4X is really designed to fill. You know, if we’re able to do this and we get her out and everything goes according to plan, I think it actually would be great to do some kei truck sizing to 130 to 140 inches and double down on the price, because when you’re looking, when you’re looking at inner city trucks, which is where most of these Kei trucks are in Japan.

JT: Interesting. I do love small truck options.

ZdB: So, just like you know, forward thinking – is that possible? Sure. Also, forward thinking is that the Speedwagon is possible.

JT: That’s the REO name everyone is thinking of, of course.

ZdB: Yeah, the Speedwagon, if we’re able to get to, if we’re able to get the Runabout to market the way that we want – or I’ll say when, yeah, absolutely. Speedwagon is what we already have trademarked.

JT: You do? I was going to ask if you had the Speedwagon trademark, and would that be like a, like a faster fun version of the of the Runabout, or a whole other whole other body design?

ZdB: Not certain right now. Okay, we have where I’m thinking personally is used to bring it back as the truck that it was, because it’s really the ancestor to the Ford F-150. You can say that we would love it to be, you know, an F-150 style size truck, because that’s what it was. It was a half-ton.

JT: I’m definitely excited by what you guys are talking about. For servicing and things like that, I have questions. So, I think you’re not going to develop your own engine, I wouldn’t imagine, because I think that would be crazy, and I imagine things like axles, brakes, things like that, these are all coming from suppliers. So, how will things get serviced? I know you wanted to make it as DIY serviceable as possible, which is wonderful, but like for people who maybe don’t have those skills, what would they do? Are there going to be.. you know, I know you don’t.. you’re not gonna have dealerships, are you gonna have arrangements with, you know, like auto parts stores, service chains, what are you thinking?

ZdB: Yeah, auto parts stores are going to be the biggest thing that we’re going to be looking to do there, for sure. Yeah, and you know, like Firestone would be a fantastic option, because, like, they’re everywhere, right?

So that’s what we’re going to look at trying to do, and we might have some mobile service vehicle that we can build on top of the T4Xs.  But no promises right now.

JT: Regarding the factory, you’re gonna be building here in America. Where are you thinking about factories, you know, being built? Do you have ideas?

ZdB: Oh, let me answer that in tandem with another question that you asked. You were talking about parts, and like supply. So like, how are we going to ship this car as fast as possible? Sorry, I’ve said ship a lot, but yeah, are we going to deliver this car as fast as possible? Because everything that we were putting on this truck, either has to be from an existing supplier, or we have to make our own tooling, and we have to make it, and tooling investment costs a lot of money and a lot of time, so we’re looking to have it’s going to be majority assemblage in the beginning, and then we’re going to, we’re going to tool the things that we have to tool that we can’t get off the shelf, but in order to make it to market as fast as possible and as reliable as possible, well, we can put it together with existing suppliers that have great reputations, and so assemblage is going to be really important, and with that in mind, that’s going to determine the footprint of the size of the facility that we select, because it tells us how many lanes we need and what tooling that we need within that facility.

Reo S4c

JT: Yeah, that makes sense.

ZdB: And we’re looking to do this in [Dallas-Fort Worth] to answer your other question. And it needs to be very close to rail, because we’ve got to get steel.

JT: Honestly, assembling supplier parts seems to make the most sense. I know you remember Elio, remember that company that wanted to make like a little small three wheeler, and then they, they, for some reason, decided to make their own three cylinder engine, even though there were plenty of good ones on the market they could have just bought, and I think that killed them, so I feel like not making that mistake is smart.

ZdB: We’re crazy. We’re starting a car company, but we also do things that make common business sense. That’s why we chose gas. Yeah, that’s why we want to do assemblage. And I know engines, I’m not building one.

JT: Right. How much better a four-cylinder engine are you gonna make?

ZdB: Yes, right? Like, what are we going to do too? If I were to tell you that, like, if I were to tell you that ‘we’re going to make our own engine’ I would make the lede of the article say: this guy has no clue what he’s talking about.

JT: 100%. My bullshit alarm would be going off immediately.

I think conceptually almost any of our readers like what you’re talking about. I think all of these things are hitting a lot of things they want, they just really want it to be real, so is there some final statement you give, something that just helps these people feel like this is something they can willingly put some hope into, because everybody’s been burned a lot with a lot of promises and things that just don’t happen, and this feels like the kind of thing they want to see happen. So, what can you say to them that’s going to give some sort of confidence?

ZdB: I’m not going to have any zingers or fantastic quotes that come to mind right now, but everything that I’ve said thus far is really kind of just proof in the pudding of how we want to make it real, right? Like I’m not setting out to fail, we’re not making decisions in La La Land. We’re not building our own engines, like we talked about. I’m a car guy. We’re doing this because we think America needs it. We’re making rational decisions, even though, again, we’re crazy, and we’re starting a car company. So, in tandem with that, you know, the more support that your leaders and the rest of the American citizens give us, the more, you know, real it becomes, and we can kind of share in that together.

Because that’s really, that’s really the only way that something like this will ever happen.

And that’s like as real as that answer can be, because the Big Three are never going to do this unless they have to do it, because they’re not going to cannibalize their existing sales.

Rednsudivider

That was a long interview, I know, but I appreciate it if you managed to stick it out. I think getting the full story, right from the source behind REO, is really the only way to evaluate what thoughts you may have about this very new company. I’ll admit, I liked a lot of what I heard, and I do think their motives and goals are great. Does that mean this will actually happen? Historically speaking: Hell no.

Still, I feel like I can say I do not think this is some scam or fraud; I think they have good plans and goals and a good, cheap, flexible and useful truck/SUV on the market is only a good thing. So I’m going to wish REO luck, and will be keeping tabs on their progress from here.

Oh, and if there’s one thing I’ve seen from REO worth getting excited about, it’s this:

That sure looks like a crotch-cooler vent to me.

Top photo: REO

 

 

 

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Jb996
Member
Jb996
29 days ago

For all the skepticism here, which I posted too…

Thank you Jason for doing the interview. It’s better to get a real conversation with the guy, rather than only getting someone’s Tweets, and sales-pitches to shareholders, promising to land on Mars or some other such nonsense which is patently false.

I also appreciate him being willing to sit down and be interviewed about it.

Michael Han
Member
Michael Han
29 days ago
Reply to  Jb996

This is why I love the Autopian, real shoe-leather journalism work instead of the same AI-regurgitated press releases that so many “news” outlets put out these days.

D-dub
Member
D-dub
29 days ago

What I’m hearing is this guy has a plan to assemble kit cars in the US that are manufactured in China.

Zach De Bernardi
Zach De Bernardi
28 days ago
Reply to  D-dub

Assemblage from US manufacturers*

Huffy Puffy
Member
Huffy Puffy
29 days ago

“Scott, Scott… it’s not that hard, Scott. Tell him, Wash.”
“It’s incredibly hard.”

Jb996
Member
Jb996
29 days ago
Reply to  Huffy Puffy

Hey, anything worth doing is.

Emil Minty
Emil Minty
29 days ago

Heard it from a friend who
Heard it from a friend who
Heard it from another
That you could get 2 old Toyota or Datsun pickups for $21,500 and they’d be cooler and way more reliable.

Cheap Bastard
Member
Cheap Bastard
28 days ago
Reply to  Emil Minty

Where are you getting two year old Datsun pickups?

Space
Space
28 days ago
Reply to  Cheap Bastard

Apparently from his time machine.

Box Rocket
Box Rocket
28 days ago
Reply to  Space

Old Datsuns and Toyotas are all over the place. No time machine required.

Space
Space
28 days ago
Reply to  Box Rocket

Sadly I just don’t see them anymore, it’s strange thinking about an old Datsun truck my friend used to drive and then looking around and seeing none, it’s like vertigo for the memory or something.

Maybe some parts of the country still have them.

Box Rocket
Box Rocket
28 days ago
Reply to  Cheap Bastard

Read what Emil actually wrote. Or, rather, didn’t write.

The word “year” does not appear in his comment.

Cheap Bastard
Member
Cheap Bastard
27 days ago
Reply to  Box Rocket

I stand corrected.

Zach De Bernardi
Zach De Bernardi
28 days ago
Reply to  Emil Minty

Sir, respectfully, have you seen Facebook Marketplace lately? Maybe for RWD you could get one second gen Taco.

RustyJunkyardClassicFanatic
Member
RustyJunkyardClassicFanatic
29 days ago

This article is like, so awesome, you know…right? It’s just like, so great, you know…right? It’s just so wonderful, you know…right?
Ha ha I know it was just part of the interview and conversing w/ each other; but it almost drove me crazy just reading all of the “you know” and “like” and “right”
I actually did find it really interesting though and ever since the Slate I’ve thought that it would be awesome w/ a gas engine, that’s the only way I’d buy it. Great research and article JT!

Obligatory R.E.O. Speedwagon!

“Cause I can’t fight this feeling anymore
I’ve forgotten what I started fightin’ for
And if I have to crawl upon the floor
Come crashing through your door
Baby, I can’t fight this feeling anymore”

Manwich Sandwich
Member
Manwich Sandwich
29 days ago

“Ha ha I know it was just part of the interview and conversing w/ each other; but it almost drove me crazy just reading all of the “you know” and “like” and “right””

I had this mental image that he did some lines of coke before and during the interview.

RustyJunkyardClassicFanatic
Member
RustyJunkyardClassicFanatic
29 days ago

Ha ha yeah, maybe he used to know John Delorean…

Twobox Designgineer
Twobox Designgineer
28 days ago

Yeah, I’m currently listening to a music podcast whose latest episode is on power ballads, so this was fresh in mind.

RustyJunkyardClassicFanatic
Member
RustyJunkyardClassicFanatic
28 days ago

Oh really? Cool! I love all kinds of hard rock and metal, but I actually do like some of the hair metal bands and ballads. There’s something about all the guitar work back then- just a lot of talent. Just off the top of my head, one of my favorite ballads is Cinderella’s “Don’t Know What You got til it’s Gone”
Also, not sure if you’ve heard of them, but the only somewhat newer band that has that kind of old skool hair metal sound is Crazy Lixx

Twobox Designgineer
Twobox Designgineer
28 days ago
Mark Tucker
Mark Tucker
29 days ago

I have my doubts, but if this is for real, I’m gonna keep on lovin’ this idea.

Zach De Bernardi
Zach De Bernardi
28 days ago
Reply to  Mark Tucker

You keep on lovin’ us and we’ll keep on lovin’ you. Btw, we are actively working on contact with REO Speedwagon for the most American reveal video ever for our designs.

i Pete in the woods
Member
i Pete in the woods
29 days ago

You didn’t ask him the one question that would vet him as legit: did he know about the Autopian?

Zach De Bernardi
Zach De Bernardi
28 days ago

The Autopian was actually the first place we wanted to drop a story due to its community. Road & Track was a little faster but they came out at about the same time.

LMCorvairFan
Member
LMCorvairFan
29 days ago

I wish them luck and a successful start.

Ppnw
Member
Ppnw
29 days ago

Thanks for reaching out and actually getting some info on this!

The interview is interesting even though he somewhat comes across as an overexcited finance bro.

But it was hard to believe any of it is gonna work when he himself admits the entire existence of the company is predicated on CAFE penalties being suspended.

The demise of his company wouldn’t even require legislation. Just a change of administration and the penalties get collected again. He addresses that briefly with “we’ll just throw in a hybrid” or “we’ll lobby for changes”.

It’s all deeply delusional.

Michael Han
Member
Michael Han
29 days ago
Reply to  Ppnw

He makes a compelling argument that it’s crazy that the F-150 is legal to sell but a company making a single 25mpg truck would be illegal under the CAFE standards, but good luck explaining that to the average congressperson.

Zach De Bernardi
Zach De Bernardi
28 days ago
Reply to  Michael Han

Thank you

86-GL
86-GL
28 days ago
Reply to  Ppnw

Yeah who knew lobbying was so easy? Someone better tell those car makers, this 35 year old real estate developer has it all figured out.

BenCars
Member
BenCars
28 days ago
Reply to  Ppnw

Exactly. Once Trump gets turfed out and a more progressive administration is in place (we can only hope), this guy is massively screwed.

I like his optimism but it also feels like he’s pandering to the wave of the Ted Cruz crowd. It’s all gonna fall apart before long.

Chris Hoffpauir
Chris Hoffpauir
29 days ago

I grew up in Houston. Crotch cooler vents are essential.

Manwich Sandwich
Member
Manwich Sandwich
29 days ago

That’s nuts!

Twobox Designgineer
Twobox Designgineer
28 days ago

it’s a jewel of an idea.

Last edited 28 days ago by Twobox Designgineer
Ransom
Ransom
29 days ago

Cool name…

Anonymous Person
Anonymous Person
29 days ago

I’d be interested. It wouldn’t even need to be 4WD for me. Just an inexpensive regular-cab pickup would be great.

Chris Hoffpauir
Chris Hoffpauir
29 days ago

It definitely would fill a fast-growing demand for small trucks. People have come to the realization that they don’t need a 4WD F-350 quad-cab to commute and get groceries.

ShifterCar
ShifterCar
28 days ago

Have they though? I live in suburban NJ where literally nobody needs that truck and yet people are getting their small children and groceries out of trucks that practically require ladders.

BB 2 wheels > 4
Member
BB 2 wheels > 4
29 days ago

Yea, that real estate business must be doing real well. So CAFE was the only thing holding this back? really?

Jb996
Member
Jb996
29 days ago

At the risk of stereotyping a bit, I’m going to assume that someone who both loves Diesels, and drives as their daily, a “2016 F-150 in white, Lariat long bed with a 5.0, a spacer lift and Raptor wheels and tires that I powder coated chrome.” just might have an outsized view of the effect of CAFE, perhaps driven by their choice of news source.
I might be wrong.

Last edited 29 days ago by Jb996
BB 2 wheels > 4
Member
BB 2 wheels > 4
28 days ago
Reply to  Jb996

woah JB, what could ever make you think such a thing?! What does the fox say?

Zach De Bernardi
Zach De Bernardi
28 days ago
Reply to  Jb996

The F-150 is the best Swiss Army knife for a man like myself with three kids.

That being said, I miss my LC500. Never should have sold that car…..said by every car guy ever.

Adrian Clarke
Editor
Adrian Clarke
29 days ago

Even Ford couldn’t do it for twenty with their economies of scale. This guy is dreamland.

Rod Millington
Rod Millington
29 days ago
Reply to  Adrian Clarke

Agreed. I wonder how easy it would be to even source an emissions compliant engine for this given he has said no direct injection, port injection only. That even rules out the current preference for combination direct and port injection.

RustyJunkyardClassicFanatic
Member
RustyJunkyardClassicFanatic
29 days ago
Reply to  Adrian Clarke

I just figured you were designing it, Uncle Adrian!
-“And the design is being done by some fantastic pedigree”
-“I can’t tell you who or where, but I’m on a plane to Europe tomorrow”
-“It’s not just Joe Schmo working on it, it’s not AI doing it, it’s not just some graphic designer that we hired”
-“The real designers of these vehicles are household names”

Ha ha, I just figured I’d list these because they fit you so well. I mean, that last one I put because yours SHOULD be a household name…because you are our awesome Autopian designer!

Adrian Clarke
Editor
Adrian Clarke
28 days ago

If I was being contracted for this I’d demand half the payment up front.

RustyJunkyardClassicFanatic
Member
RustyJunkyardClassicFanatic
28 days ago
Reply to  Adrian Clarke

Ha ha yeah, I know, right?

Drew
Member
Drew
28 days ago
Reply to  Adrian Clarke

Really nice of you to only demand half, honestly.

Ranwhenparked
Member
Ranwhenparked
29 days ago
Reply to  Adrian Clarke

Was it that Ford couldn’t do it, or was it that they saw the massive demand, waiting lists, and adjusted dealer markups, and realized they didnt need to do it?

Scoutdude
Scoutdude
29 days ago
Reply to  Ranwhenparked

Yup the market set the price and Ford took the profit back from the dealers.

Adrian Clarke
Editor
Adrian Clarke
28 days ago
Reply to  Ranwhenparked

They underpriced it but couldn’t up the price straight away, so had to restrict production to limit the losses.

Then they adjusted the pricing so that it err, actually made a profit. That’s my educated guess at any rate.

Scoutdude
Scoutdude
29 days ago
Reply to  Adrian Clarke

Ford DID do it. Sure the margins were going to be razor thin in the 20K version. Ford was expecting retail buyers to be much more like Ranger and F series buyers where they wouldn’t touch an XL and the majority of them would want 4wd which was initially locked behind the Turbo paywall.

Then a funny thing happened on the way to the market, Maverick buyers weren’t like Ranger and F-series buyers and there were waaaay more of them than Ford had imagined.

The laws of Supply and Demand took over and sat the market price when dealers were able to stick $5k “adjusted market value” on them. Yet even at that price there was more demand than production capacity. So yeah Ford saw the market price and adjusted the base price to match rather than let the dealers have it.

But your point is still well taken, Ford was able to hit that under $20k price point by leveraging the C2 platform and components. The USMC agreement also helped by allowing lower cost production in Mexico. The fact that it was designed to have 2 line mates was another way they were able to keep the price low. * Yes it only has 1 line mate as the Transit Connect was dropped with the other two far exceed predictions.

Adrian Clarke
Editor
Adrian Clarke
28 days ago
Reply to  Scoutdude

I don’t think there was any margin at $20k. I think they made a mistake and were losing money. If there were, that would have stayed the price for the base model, and they would have tried to make it up on volume and used it to get people into the showroom to upsell them.

Last edited 28 days ago by Adrian Clarke
Scoutdude
Scoutdude
28 days ago
Reply to  Adrian Clarke

They didn’t need more volume, they needed less as they hadn’t ordered that many components from suppliers and had to increase the plants output several times and still haven’t reached the point where capacity is higher than demand.

Plus as I said they expected a higher take rate of the higher trim levels, turbo and 4×4 to make it profitable.

Adrian Clarke
Editor
Adrian Clarke
28 days ago
Reply to  Scoutdude

That was my point. They underpriced it at $20k where it was making a loss. So yeah you want to sells as few as possible at that price point because the more you sell the bigger your losses.

Manwich Sandwich
Member
Manwich Sandwich
29 days ago
Reply to  Adrian Clarke

On the bright side, we can call be amused and entertained when we watch his dreamland catch fire and burns down around him.

BB 2 wheels > 4
Member
BB 2 wheels > 4
28 days ago

don’t talk about texas like that. Kristi Noem will find you and take you out back like a dog that can’t hunt.

Drew
Member
Drew
28 days ago
Reply to  Adrian Clarke

When his response about why we should trust him was to ask whether we would trust legacy manufacturers to do it, I immediately read that deflection as either finance bro bullshitting or ridiculous naivety. Maybe both.

Cal67
Cal67
28 days ago
Reply to  Adrian Clarke

Yes, and who is going to sell him an engine, transmission and rear end for a price that will allow him to meet the $21.5K target?

Speedway Sammy
Speedway Sammy
28 days ago
Reply to  Cal67

Harbor Freight Predator by Loncin?

Turbeaux
Member
Turbeaux
28 days ago
Reply to  Speedway Sammy

I would buy a harbor freight truck if it had a super coupon.

Dieter's Magnificent Stache
Dieter's Magnificent Stache
28 days ago
Reply to  Turbeaux

10% off if you can fit it in a bucket. This weekend only.

Noahwayout
Member
Noahwayout
27 days ago
Reply to  Adrian Clarke

I take it that De Bernardi isn’t on his way to Europe to meet with Adrian.

Last edited 27 days ago by Noahwayout
Adrian Clarke
Editor
Adrian Clarke
27 days ago
Reply to  Noahwayout

Nobody wants to meet with me.

SCW
SCW
29 days ago

Another thing is Toyota and Nissan have the pickup trucks to cut REO off at the knees (Toyota Hilux Champ and the Nissan NP300) but they are incapable or cant see the storm brewing on the horizon, they are like GM, Ford and Chrysler in the 60s watching these little startup companies incapable of reacting.

Silent But Deadly
Silent But Deadly
28 days ago
Reply to  SCW

Not to mention a quite a number of Chinese operations that are already selling similar vehicles into markets outside North America.

Funny thing is… regardless of who makes them…almost no-one buys then. Here in Oz, 4×2 BoF versions of the ubiquitous Ranger style dual cabs sell maybe a couple of hundred per month, mostly to regional fleets. While their flasher brothers sell in the many thousands.

Cerberus
Member
Cerberus
29 days ago

“I hate waiting. I could give you my word as a car guy.”
“No good. I’ve known too many car guys.”

Whoa, crotch coolers [interrobang]

Spopepro
Member
Spopepro
29 days ago

Hear me out–they should get Rotax to make an extended service interval version of the 916. Light weight, air cooled, flat 4 so it can be packaged with 4wd like a subaru, runs on regular unleaded. And it can then hit *all* the enthusiast high notes around here. They’ll sell dozens!

Gene
Gene
29 days ago

If it’s going to be a true 4×4 pickup, the approach angle and breakover better have good angles. That means better than the Toyota Hilux Champ.

Toyota Thailand launches entry level pickup truck – Just Auto

Spikersaurusrex
Member
Spikersaurusrex
29 days ago

Well, good luck to them, but I heard it from a friend who heard it from a friend that making and selling cars is hard.

Twobox Designgineer
Twobox Designgineer
28 days ago

I know that commercial usage of a trademarked name in one market/product can be separate from use in a wholly different one, legally allowable when there is no possibility of consumer confusion. But I still miss Torch bringing up the band REO Speedwagon. Or, Oreo Speedcookie.

Spikersaurusrex
Member
Spikersaurusrex
28 days ago

Well, the band was named for the car, so I wouldn’t think they’d have much of a problem with it, but who knows.

Andy Individual
Andy Individual
29 days ago

At least one of these cheap pickup trucks better be able to jump over a shark.

RustyJunkyardClassicFanatic
Member
RustyJunkyardClassicFanatic
29 days ago

Ha ha yeah, and work good w/ the Fuel Shark! I’m so impressed with mine and can’t believe how much gas I save. It’s so awesome!

1978fiatspyderfan
1978fiatspyderfan
29 days ago

Sorry this guy reads like a made for TV Slimy scam artist. Not one real fact and plenty of stuff I love hearing but it’s like trying to grab smoke he moves back and forth better than a Chinese lady gymnist. I smell scam I love me some Torch but he and David have to be some of the most knowledgeable but trusting naive people I have never met. Get the facts not everything is non disclosure especially when you are buying ready made parts. Does any reliable manufacturer say they are in talks?

SCW
SCW
29 days ago

Gas, check
Regular cab, check
Manual transmission, check
4×4, check
Smallish, check
Cheapish, check
Dream truck.

1978fiatspyderfan
1978fiatspyderfan
29 days ago
Reply to  SCW

Actually producing gut check

Cal67
Cal67
28 days ago
Reply to  SCW

You forgot the pipe – pipe dream truck.

Twobox Designgineer
Twobox Designgineer
28 days ago
Reply to  SCW

Keyword, dream. See: illusion, delusion, fantasy, wish.

MAX FRESH OFF
Member
MAX FRESH OFF
29 days ago

Right on! Bring back the manuals and the ball chillers and coochie coolers and butterfly quarter vent windows, too!

Twobox Designgineer
Twobox Designgineer
28 days ago
Reply to  MAX FRESH OFF

New press release: all Slate trucks will now include a Blue Ice freezer pack in order to stay competitive.

Ranwhenparked
Member
Ranwhenparked
29 days ago

Does this mean we could get a new straight eight Royale at some point?

Rich Mason
Rich Mason
29 days ago

Should call it the Speedwagon. Really.

Crotch vent!
Where do I send my deposit?

1978fiatspyderfan
1978fiatspyderfan
29 days ago
Reply to  Rich Mason

Send it to me I can get it to him.

Jb996
Member
Jb996
29 days ago
Reply to  Rich Mason

Got my REO Speedwagon, to Take It On The Run.

Chris Hoffpauir
Chris Hoffpauir
29 days ago
Reply to  Jb996

But remember, you gotta keep on rollin’ with the changes in order to ride the storm out.

SAABstory
Member
SAABstory
29 days ago

So remember, you can tune a REO truck but you can’t tune a fish.

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