Texas startup Reo Industries reveals cheap $21,500 pickup in the US with mechanical 4×4 drive
An American manufacturer has introduced a new gasoline-powered mini pickup truck with a highly competitive starting price of $21,500. The vehicle, from REO Industries, promises an optional manual transmission and an impressive range of 965 kilometers, surpassing the rival Slate in cost.
Recently, the Detroit brand Slate had announced that its launch electric pickup would start at US$24,950, one of the lowest prices in the segment. However, Texas-based REO Industries is about to launch its Runabout compact pickup truck, which will not only be more affordable but also won’t face range concerns since it’s equipped with a combustion engine. The initiative raises the question of whether this model can truly reinvigorate the compact pickup truck market in the United States.
The return of a traditional name in the automotive industry
The name REO has a legacy in automobile history, as the REO Motor Car Company was founded in 1905 by Ransom Eli Olds, shortly after his departure from Oldsmobile. The company became known for manufacturing robust trucks and utility vehicles. More recently, Zach De Bernardi, founder and CEO of current REO Industries, secured the trademark registration. While today’s REO is a distinct entity from the early 20th century original, it preserves the company’s connection to the production of practical utility vehicles, which aligns perfectly with its new lineup of entry-level, affordable vehicles.
With this brief historical excursion, it is possible to direct attention to the three models that the company plans to launch. They are: the two-door Runabout T4X pickup truck, the four-door Runabout T4C and the Runabout S4C SUV.
According to information from Road & Track, the T4X model will be approximately 4.57 meters long, a size comparable to that of a Honda Civic. Starting at $21,500, this pickup will be built on a traditional chassis, equipped with a four-cylinder gasoline engine and mechanical four-wheel drive. There will be six-speed manual and automatic transmission options, and REO aims for a range of more than 965 kilometers on a single tank of fuel, which represents approximately triple the range of the Slate’s electric pickup. With a towing capacity of around 2,041 kg, the vehicle is significantly more robust than compact sedans or crossovers in the same price range. REO also projects a useful life for the powertrain of an impressive 804,560 kilometers.
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The promotional images released so far serve only as examples of direction and do not represent the final designs of the vehicles. However, REO models are expected to feature simple, square-shaped designs, prioritizing functionality over the latest aesthetic trends.
Strategies to enable competitive cost-benefit
It is undeniable that building a pickup truck with a starting price of just over US$20,000 will require certain concessions in the manufacturing process. Inspired by Japanese Kei vehicles, which are uncomplicated, the most affordable pickup truck could be sold without features such as a radio or premium finished door panels. Physical controls will be more prevalent than digital screens, although several stand-alone options will allow shoppers to add essentials as needed.
“Our goal is to answer the question, ‘What is the definition of a truck?’ And we will build this”, said De Bernardi. “We’re just going to make it smaller, more accessible and do whatever makes economic sense for a startup.”
Reservations for REO Runabout models can now be made on the manufacturer’s website, with a deposit of US$25. The company plans the official presentation of the model for the fourth quarter of 2026, with the production of pilot units in 2027 and deliveries beginning in late 2028.
