Over the last year, Slate has built a lot of the buzz across the industry for its ambitious plans to sell a small, simple truck at an affordable price — and now that truck might be facing a new competitor that doesn’t just undercut its price, but also uses an entirely different type of powertrain and fuel source.

Progress on the Slate pickup continues full speed ahead, with the company recently showing a full prototype and announcing a starting price under $25,000. While the Slate’s basic features and low price (relative to other new pickups) will be a draw for buyers, one factor likely to limit its appeal is its battery electric powertrain. EVs absolutely have their benefits in certain situations, but a lack of easy roadtrip capability from this vehicle’s estimated 200-mile range and a possible lack of home charging options for buyers will both be significant hurdles. 

Enter the REO Industries Runabout, another small truck from a startup manufacturer with big promises. Not only does the Runabout’s planned starting price of $21,500 significantly undercut the Slate, but it also uses a traditional internal combustion engine. However, while REO has already started taking reservations for the Runabout, plenty of hesitation is warranted given the long list of failed automotive startups in recent years. With its back-to-the-basics, internal combustion approach, could REO be different?

If the REO name sounds familiar, that’s because at one time it was both an automobile builder and one of the most established names in American truck building, with the original version of the company closing in 1975. In its reincarnation, REO is a Texas-based startup that’s hoping to take the small pickup truck back to its ’80s and ’90s roots.

Interestingly, a big part of the inspiration for the REO Runabout was the founder’s love of old Toyota pickup trucks and Japanese Kei trucks — namely their mechanical simplicity and longevity. The Runabout hopes to be a modern version of that, with body-on-frame construction, mechanical four-wheel drive, and a naturally aspirated four-cylinder engine with either a manual or automatic transmission. This is a much different setup than the popular Ford Maverick, which uses a unibody design with either hybrid or turbocharged powerplants.

How can REO achieve all of this at such a low price point? The plan is to keep things simple inside and out. Though the engine specs haven’t been finalized, the motor will most likely be supplied by an existing automaker to save money and give buyers some peace of mind. REO’s overall goal is to sell something similar to a Japanese Kei truck, but for it to be better-sized for American drivers and U.S. roads.

REO plans to sell the Runabout in three different body styles, including the entry-level two-door truck with a drop-side bed, a four-door truck, and an enclosed SUV model. The company plans to show the lineup in full and release more details in the latter part of 2026. 

Given the long list of failed and bankrupt auto startups in recent years, it’s natural to be skeptical about REO’s plans to build and sell inexpensive trucks in the United States directly to consumers. However, unlike other failed startups, REO is not trying to sell state-of-the-art electric vehicles. Instead, it is going for cheap, gasoline trucks purposely engineered to be low-tech and simple. These are the vehicles that many American buyers have said they want in an era of ballooning vehicle sizes, prices, and technological complexity. Of course, sometimes what people say they want and what buyers actually want to pay for are different things.

REO is hoping that recent shifts in federal emissions regulations and the Trump Administration’s openness toward to smaller vehicles will give it the opening it needs into a market that’s historically been very difficult for newcomers. Time will tell whether REO’s ambitious plans can become reality. At the very least, its plan to bring affordable, simple pickup trucks to the American market is something to watch.