For the last few decades, American pickup trucks have followed a predictable trajectory. Each new generation became larger, heavier, more powerful, and more expensive. What was once a compact work truck evolved into a full size luxury vehicle that can easily cost more than $70,000. Now a new startup believes there is room for something radically different.
REO Trucks, a Texas based start-up has announced plans to launch a compact gasoline powered pickup with a target starting price of just $21,500. The company takes its name from the historic REO Motor Car Company founded by Ransom E. Olds in 1904, the same automotive pioneer who created Oldsmobile. While the modern startup is not a direct continuation of the original manufacturer, it is clearly attempting to tap into that legacy of affordable, practical transportation.
The project is being funded by a group of private investors that includes automotive suppliers, logistics industry executives, and several Midwest manufacturing firms. REO says the goal is to build a simple, durable truck aimed at tradespeople, small businesses, fleet operators, and outdoor enthusiasts who have been priced out of the modern pickup market.
The first model, a small two-door pickup currently known as the Runabout TX4 is expected to enter production in late 2027 with customer deliveries beginning in early 2028. A four door crew cab version called the Runabout T4C is planned to follow roughly a year later and starts at $25,000. Finally, a larger SUV-like variant called the S4C will seat six and start at $28,500.
All variants will be built with body-on-frame construction and are designed for a powertrain life of 500,000 miles. REO plan to adopt the Tesla model and sell directly to consumers with no dealers to inflate the price tag, and all models will be assembled in Texas.
REO is targeting a curb weight of about 4,200 pounds and overall dimensions that are much closer to the old Ford Ranger and Toyota Tacoma than today’s midsize trucks. Power will come from an inline four-cylinder engine paired with either a six-speed manual or an eight-speed automatic transmission. There is no word yet on whether REO will design and build their own engine (unlikely), or will source an existing engine from a proven manufacturer (much more likely).
Projected specs include a payload rating of 2,500 pounds, towing capacity of 4,500 pounds, and fuel economy of roughly 25 mpg on the highway. Range is expected to be around 600 miles thanks to a 25 gallon fuel tank. Mechanical four wheel drive is standard. REO is also promising a six foot bed, a steel rear bumper, physical climate controls, and minimal reliance on touchscreens.
REO are also promising that every panel can be removed in under five minutes with common tools, the vehicle will use plain-English diagnostics with a $30 scanner, a 20-year public parts catalog at “fair prices”, and an in-writing contract that specifies there is no parts-pairing, meaning parts do not have to be digitally signed in by a computer to function.
These are all extremely lofty promises, and could signify a serious shake-up of the US Automotive industry if REO can actually deliver.
The obvious comparison is the upcoming Slate electric pickup, which has generated enormous attention with its promised sub $28,000 price point. Slate offers around 201 horsepower, rear wheel drive, and an estimated range of about 150 miles in base form, with a larger battery expected to increase that figure to roughly 240 miles.
Slate EV pickup
On paper, the REO loses out in terms instant acceleration and modern EV performance, but it arrives with a significantly lower price and none of the charging considerations that still concern many rural buyers and overland travelers. A $21,500 gasoline truck that can be refueled anywhere in North America will appeal to a very different audience than an entry level electric pickup.
For adventure travelers, the REO’s simplicity may be its biggest advantage. A lightweight truck with a manual transmission, decent fuel economy, and fewer electronic systems could become an attractive platform for small camper builds, backcountry exploration, and long distance travel on a budget.
Talk is cheap
Whether REO can actually bring the truck to market remains the big question. Building a vehicle from scratch is enormously expensive, and many automotive startups have failed before reaching production. Still, the fact that multiple companies are now chasing the affordable compact truck segment is noteworthy. As of right now, REO have not even released full renders of these vehicles, only the silhouette images in this article—not necessarily a great sign.
For years, manufacturers insisted that American buyers only wanted bigger trucks with more features and higher price tags. Suddenly, both REO and Slate are betting that a substantial number of customers would happily choose a smaller pickup that costs less than many economy cars.
Maybe change is in the air.
Learn more or make a $25 fully-refundable reservation today at reotrucks.com
Read more: Slate Auto Drops a $20000 DIY Bombshell
Images: REO Trucks, Slate EV
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