REO Revives Historic Brand with $21,500 Direct-Sale Pickup
The Texas-built vehicle features mechanical four-wheel drive, analog controls, and a 500,000-mile powertrain target, with sales conducted exclusively online to bypass traditional dealership fees.
REO has unveiled the 'Runabout', a new body-on-frame pickup truck designed to counter modern automotive trends by prioritising mechanical simplicity and direct-to-consumer sales. Priced from $21,500, the vehicle is manufactured in Texas and sold exclusively online, a strategy the company states is intended to eliminate dealer markups and unnecessary fees. Reservations are currently open for a fully refundable $25 deposit, with production allocation determined by the chronological order of reservation placement.
The Runabout is powered by a naturally aspirated four-cylinder gasoline engine paired with mechanical four-wheel drive, eschewing complex electronics for levers, rockers, and analog gauges. The engineering brief targets a powertrain lifespan of 500,000 miles, reflecting a deliberate choice to utilise proven technology over the newest innovations. REO notes that 90% of new cars sold still run on gasoline, justifying the focus on internal combustion reliability for a vehicle that includes one small screen for diagnostics and CarPlay.
The brand revives the name of Ransom E. Olds, who founded the original REO Motor Car Company after leaving Oldsmobile. The historic entity operated for 70 years before closing, with its REO Speed Wagon considered an ancestor of the modern pickup truck. The new venture positions itself against the current industry shift towards software subscriptions and feature locks, promising plain-English diagnostics compatible with a $30 scanner and a 20-year public parts catalog at fair prices.
Pre-production trucks have reportedly been built, tested, and certified to federal standards. The company emphasises transparency in its supply chain and ownership model, stating that every panel can be removed in under five minutes using common tools. REO has committed to a no-parts-pairing policy in writing, aiming to ensure that the vehicle belongs to the people who drive it rather than a profit model built on gatekeeping.
The launch follows a period of development where the company sought to address a perceived gap in the American market for a small, affordable truck that does not require a seven-year loan. By maintaining a direct relationship with buyers through an online Owners’ Club, REO aims to establish a new standard for automotive ownership. The first production vehicles are scheduled to reach customers in reservation order, with the company describing its approach as bringing back the affordable American truck that few other manufacturers are currently willing to build.
