American Motors Corporation (AMC; commonly referred to as American Motors) was an American automobile manufacturing company formed by the
merger
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
of
Nash-Kelvinator Corporation
Nash-Kelvinator Corporation was the result of a merger in 1937 between Nash Motors and Kelvinator Appliance Company. The union of these two companies was brought about as a result of a condition made by George W. Mason prior to his appointment as ...
and
Hudson Motor Car Company
The Hudson Motor Car Company made Hudson and other branded automobiles in Detroit, Michigan, U.S., from 1909 until 1954. In 1954, Hudson merged with Nash-Kelvinator to form American Motors Corporation (AMC). The Hudson name was continued through ...
on May 1, 1954. At the time, it was the largest corporate merger in U.S. history.
American Motors' most similar competitors were those automakers that held similar annual sales levels such as
Studebaker
Studebaker was an American wagon and automobile manufacturer based in South Bend, Indiana, with a building at 1600 Broadway, Times Square, Midtown Manhattan, New York City. Founded in 1852 and incorporated in 1868 as the Studebaker Brothers M ...
,
Packard
Packard or Packard Motor Car Company was an American luxury automobile company located in Detroit, Michigan. The first Packard automobiles were produced in 1899, and the last Packards were built in South Bend, Indiana in 1958.
One of the "Thr ...
,
Kaiser Motors
Kaiser Motors (formerly Kaiser-Frazer) Corporation made automobiles at Willow Run, Michigan, United States, from 1945 to 1953. In 1953, Kaiser merged with Willys-Overland to form Willys Motors Incorporated, moving its production operations ...
, and
Willys-Overland
Willys (pronounced , "Willis" )
was a brand name used by Willys–Overland Motors, an American automobile company, founded by John North Willys. It was best known for its design and production of World War II era and later military jeeps (MBs) ...
. Their largest competitors were the
Big Three—
Ford
Ford commonly refers to:
* Ford Motor Company, an automobile manufacturer founded by Henry Ford
* Ford (crossing), a shallow crossing on a river
Ford may also refer to:
Ford Motor Company
* Henry Ford, founder of the Ford Motor Company
* Ford F ...
,
General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
, and
Chrysler
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...
.
American Motors' production line included
small cars - the
Rambler American
The Rambler American is a compact car that was manufactured by the American Motors Corporation (AMC) between 1958 and 1969. The American was the second incarnation of AMC forerunner Nash Motors' compact Rambler that was introduced in 1950 a ...
which began as the Nash
Rambler
Rambler or Ramble may refer to:
Places
* Rambler, Wyoming
* Rambler Channel (藍巴勒海峽), separates Tsing Yi Island and the mainland New Territories in Hong Kong
* The Ramble and Lake, Central Park, an area within New York City's Centr ...
in 1950,
Hornet
Hornets (insects in the genus ''Vespa'') are the largest of the eusocial wasps, and are similar in appearance to their close relatives yellowjackets. Some species can reach up to in length. They are distinguished from other vespine wasps by th ...
,
Gremlin
A gremlin is a mischievous folkloric creature invented at the beginning of the 20th century to originally explain malfunctions in aircraft and later in other machinery and processes and their operators. Depictions of these creatures vary widel ...
, and
Pacer;
intermediate and
full-sized cars, including the
Ambassador
An ambassador is an official envoy, especially a high-ranking diplomat who represents a state and is usually accredited to another sovereign state or to an international organization as the resident representative of their own government or sov ...
,
Rambler Classic,
Rebel
A rebel is a participant in a rebellion.
Rebel or rebels may also refer to:
People
* Rebel (given name)
* Rebel (surname)
* Patriot (American Revolution), during the American Revolution
* American Southerners, as a form of self-identification; ...
, and
Matador
A bullfighter (or matador) is a performer in the activity of bullfighting. ''Torero'' () or ''toureiro'' (), both from Latin ''taurarius'', are the Spanish and Portuguese words for bullfighter and describe all the performers in the activit ...
;
muscle car
Muscle car is a description according to ''Merriam-Webster Dictionary'' that came to use in 1966 for "a group of American-made two-door sports coupes with powerful engines designed for high-performance driving." The '' Britannica Dictionary'' ...
s, including the
Marlin
Marlins are fish from the family Istiophoridae, which includes about 10 species. A marlin has an elongated body, a spear-like snout or bill, and a long, rigid dorsal fin which extends forward to form a crest. Its common name is thought to deri ...
,
AMX and
Javelin
A javelin is a light spear designed primarily to be thrown, historically as a ranged weapon, but today predominantly for sport. The javelin is almost always thrown by hand, unlike the sling, bow, and crossbow, which launch projectiles with th ...
; and early
four-wheel drive
Four-wheel drive, also called 4×4 ("four by four") or 4WD, refers to a two-axled vehicle drivetrain capable of providing torque to all of its wheels simultaneously. It may be full-time or on-demand, and is typically linked via a transfer case ...
variants of the
Eagle
Eagle is the common name for many large birds of prey of the family Accipitridae. Eagles belong to several groups of genera, some of which are closely related. Most of the 68 species of eagle are from Eurasia and Africa. Outside this area, just ...
and the
Jeep Wagoneer
The Jeep Wagoneer is a sport utility vehicle (SUV) nameplate of Jeep vehicles, with several models marketed for the 1963 through 1993 model years and again since the 2022 model year.
Various versions of the Wagoneer were manufactured in the US ...
, the first true
crossovers
Crossover may refer to:
Entertainment
Albums and songs
* ''Cross Over'' (Dan Peek album)
* ''Crossover'' (Dirty Rotten Imbeciles album), 1987
* ''Crossover'' (Intrigue album)
* ''Crossover'' (Hitomi Shimatani album)
* ''Crossover'' (Yoshino ...
in the U.S. market.
Regarded as "a small company deft enough to exploit special market segments left untended by the giants", American Motors was widely known for the design work of chief stylist
Dick Teague
Richard Arthur Teague (December 26, 1923 – May 5, 1991) was an American industrial designer in the North American automotive industry. He held automotive design positions at General Motors, Packard, and Chrysler before becoming Vice President o ...
, who "had to make do with a much tighter budget than his counterparts at Detroit's Big Three", but "had a knack for making the most of his employer's investment".
After periods of intermittent independent success,
Renault
Groupe Renault ( , , , also known as the Renault Group in English; legally Renault S.A.) is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured ...
acquired a major interest in American Motors in 1979, and the company was ultimately acquired by
Chrysler
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...
.
1954 formation
![American Motors-1954](https://upload.wikimedia.org/wikipedia/commons/d/d8/American_Motors-1954.svg)
In January 1954, Nash-Kelvinator Corporation began the acquisition of the Hudson Motor Car Company (in what was called a
merger
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
). The new corporation would be called the American Motors Corporation. An earlier corporation with the same name, co-founded by
Louis Chevrolet
Louis-Joseph Chevrolet (; December 25, 1878 – June 6, 1941) was a Swiss-American race car driver, mechanic and entrepreneur who co-founded the Chevrolet Motor Car Company in 1911.
Early life
Louis-Joseph Chevrolet was born on December 25, 1 ...
, had existed in Plainfield, New Jersey from 1916 through 1922 before merging into the Bessemer–American Motors Corporation.
The Nash-Kelvinator/Hudson deal was a straight
stock transfer (three shares of Hudson listed at 11⅛, for two shares of American Motors and one share of Nash-Kelvinator listed at 17⅜, for one share of American Motors) and finalized in the spring of 1954, forming the fourth-biggest auto company in the U.S. with
asset
In financial accountancy, financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value ...
s of US$355 million and more than $100 million in
working capital
Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is consi ...
. The new company retained Hudson CEO
A.E. Barit
Abraham Edward Barit (August 30, 1890 – July 14, 1974) was an American industrialist who served as the president and CEO of the Hudson Motor Car Company from 1936 to 1954 when Hudson merged with Nash Motors to form American Motors Corporation. ...
as a consultant and he took a seat on the
board of directors
A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...
. Nash's
George W. Mason
George Walter Mason (March 12, 1891 – October 8, 1954) was an American industrialist. During his career Mason served as the Chairman and CEO of the Kelvinator Corporation (1928-1937), Chairman and CEO of the Nash-Kelvinator Corporation (1937-19 ...
became president and CEO.
![AMC-post-1](https://upload.wikimedia.org/wikipedia/commons/8/87/AMC-post-1.jpg)
Mason, the architect of the merger, believed that the survival of the U.S.'s remaining independent automakers was dependent on their joining in one multiple-brand company capable of challenging the Big Three as an equal. The "frantic 1953–54 Ford/GM price war" had a devastating impact on the remaining "independent" automakers. The reasons for the merger between Nash and Hudson included helping cut costs and strengthen their sales organizations to meet the intense competition expected from autos' Big Three.
One quick result from the merger was the doubling up with Nash on purchasing and production, allowing Hudson to cut prices an average of $155 on the Wasp line, and up to $204 on the more expensive Hornet models. After the merger, AMC had its first profitable quarter during the second three months of 1955, earning $1,592,307, compared to a loss of $3,848,667 during the same period in the previous year. Mason also entered into informal discussions with
James J. Nance
James John Nance (19 February 1900 – 21 July 1984) was an American industrialist who became president of the Studebaker-Packard Corporation. Later, he was chief executive of the Central National Bank of Cleveland, chairman of the executive co ...
of Packard to outline his
strategic vision. Interim plans were made for American Motors to buy Packard
Ultramatic
Ultramatic was the trademarked name of the Packard Motor Car Company's automatic transmission introduced in 1949 and produced until 1954, at Packard's Detroit, Michigan East Grand Boulevard factory. It was produced thereafter from late 1954, thru ...
automatic transmissions and Packard
V8 engine
A V8 engine is an eight-cylinder piston engine in which two banks of four cylinders share a common crankshaft and are arranged in a V configuration.
The first V8 engine was produced by the French Antoinette company in 1904, developed and us ...
s for certain American Motors products.
In July 1954,
Packard
Packard or Packard Motor Car Company was an American luxury automobile company located in Detroit, Michigan. The first Packard automobiles were produced in 1899, and the last Packards were built in South Bend, Indiana in 1958.
One of the "Thr ...
acquired
Studebaker
Studebaker was an American wagon and automobile manufacturer based in South Bend, Indiana, with a building at 1600 Broadway, Times Square, Midtown Manhattan, New York City. Founded in 1852 and incorporated in 1868 as the Studebaker Brothers M ...
. The new
Studebaker-Packard Corporation
The Studebaker-Packard Corporation was the entity created in 1954 by the purchase of the Studebaker Corporation of South Bend, Indiana, by the Packard Motor Car Company of Detroit, Michigan. While Studebaker was the larger of the two companies, P ...
(S-P) made the new Packard V8 engine and Packard's Ultramatic automatic transmission available to American Motors for its 1955
Nash Ambassador
The Nash Ambassador is a luxury automobile that was produced by Nash Motors from 1927 until 1957. For the first five years it was a top trim level, then from 1932 on a standalone model. Ambassadors were lavishly equipped and beautifully construc ...
and Hudson Hornet models. When Mason died in 1954,
George W. Romney
George Wilcken Romney (July 8, 1907 – July 26, 1995) was an American businessman and politician. A member of the Republican Party, he served as chairman and president of American Motors Corporation from 1954 to 1962, the 43rd gover ...
succeeded him. Ironically, Romney had once been offered Nance's job. In 1948, Romney received offers from Packard for the post of chief operating officer and from Nash for the number two position in the company. Although the Packard offer would have paid more, Romney decided to work under Mason because he thought Nash had a brighter future. Studebaker-Packard President James Nance refused to consider merging with American Motors unless he could take the top position (Mason and Nance were former competitors as heads of the Kelvinator and
Hotpoint
Hotpoint is a British brand of domestic appliances. Ownership of the brand is split between American company Whirlpool, which has the rights in Europe, and Chinese company Haier, which has the rights in the Americas through its purchase of GE A ...
, respectively), and a week after Mason's death Romney announced, ''"there are no mergers under way either directly or indirectly."'' Romney agreed with Mason's commitment to buy S-P products. Mason and Nance had agreed that in return S-P would endeavor to purchase parts from American Motors, but S-P did not do so. As the Packard engines and transmissions were comparatively expensive, American Motors began development of its own
V8.
American Motors also spent US$40 million developing its Double Safe Single Unit
monocoque
Monocoque ( ), also called structural skin, is a structural system in which loads are supported by an object's external skin, in a manner similar to an egg shell. The word ''monocoque'' is a French term for "single shell".
First used for boats, ...
, which debuted in the 1956 model year. In mid-1956, the Packard V8 and
TwinUltramatic transmission were phased out and replaced by American Motors's new V8 and by GM Hydra-Matic and
Borg-Warner
BorgWarner Inc. is an American automotive supplier headquartered in Auburn Hills, Michigan. The company maintains production facilities and technical systems at 93 sites (as of June 6, 2022) in 22 countries worldwide and has around 49,000 employ ...
transmissions.
Product development in the 1950s
Product consolidation
American Motors combined the Nash and Hudson product lines under a common manufacturing strategy in 1955, with the production of Nashes and Hudsons consolidated at the Nash plant in Kenosha.
[ The Detroit Hudson plant was converted to military contract production and eventually sold. The separate Nash and Hudson dealer networks were retained. The Hudsons were redesigned to bring them in harmony with Nash's body styles.
The fast-selling ]Nash Rambler
The Nash Rambler is a North American automobile that was produced by the Nash Motors division of Nash-Kelvinator Corporation from 1950 to 1954 in sedan, wagon, and fixed-profile convertible body styles.
On 1 May 1954, Nash-Kelvinator merged ...
model was sold as both a Nash and a Hudson in 1955 and 1956. These badge-engineered
In the automotive industry, rebadging is a form of market segmentation used by automobile manufacturers around the world. To allow for product differentiation without designing or engineering a new model or brand (at high cost or risk), a manu ...
Ramblers, along with similar Metropolitans, were identical save for hubcaps, nameplates, and other minor trim details.
The pre-existing full-size Nash product line was continued with the Nash Statesman
The Nash Statesman is a full-sized automobile that was built by Nash Motors for the 1950 through 1956 model years in two generations. The Statesman series was positioned between the top-line Nash Ambassador and above the Nash Rambler.
First ...
restyled as the "new" Hudson Wasp
The Hudson Wasp is an automobile that was built and marketed by the Hudson Motor Car Company of Detroit, Michigan, from the 1952 through the 1956 model years. After Hudson merged with Nash Motors, the Wasp was then built by American Motors Corpor ...
and the Nash Ambassador
The Nash Ambassador is a luxury automobile that was produced by Nash Motors from 1927 until 1957. For the first five years it was a top trim level, then from 1932 on a standalone model. Ambassadors were lavishly equipped and beautifully construc ...
restyled as the Hudson Hornet
The Hudson Hornet is a full-sized automobile that was manufactured by Hudson Motor Car Company of Detroit, Michigan from 1951 until 1954, when Nash-Kelvinator and Hudson merged to form American Motors Corporation (AMC). Hudson automobiles ...
. Although the cars shared the same body shell, they were at least as different from one another as Chevrolet and Pontiac. Hudsons and Nashes each used their own engines as they had previously: the Hudson Hornet continued to offer the I6 that had powered the (NASCAR
The National Association for Stock Car Auto Racing, LLC (NASCAR) is an American auto racing sanctioning and operating company that is best known for stock car racing. The privately owned company was founded by Bill France Sr. in 1948, and hi ...
) champion during the early 1950s; the Wasp now used the former engine of the Hudson Jet.
The Nash Ambassador and Statesman continued with overhead- valve and L-head sixes respectively. Hudson and Nash cars had different front suspensions. Trunk lids were interchangeable but other body panels, rear window glass, dash panels, and braking systems were different. The Hudson Hornet and Wasp, and their Nash counterparts, had improved ride and visibility; also better fuel economy owing to the lighter unitized Nash body.
The larger Nash and Hudson range did not sell well and AMC lost money each year. Dismayed with the results Romney decided in 1956 that the future of the company lay with the compact Rambler line. Romney halted production on the new large cars and focused entirely on the new Rambler Six and V8
The Rambler Six and the Rambler V8 are intermediate sized automobiles that were built and marketed by American Motors Corporation (AMC) from 1956 to 1960.
Launched on 15 December 1955, the 1956 model year Rambler Six ushered a "new era in motor ...
introducing them in 1956, despite being scheduled for a 1957 release. Sales of the new Ramblers were poor and sales of the Hudson and Nash models almost non-existent, resulting in a $31.7 million operating loss for 1956. Sales improved in 1957 but the year still saw an $11.8 million loss for the company. In response Romney launched a massive PR blitz, traveling 70,000 miles nationwide in 12 months. Romney spoke at union halls, dinners, churches, fairgrounds, as well as radio and TV stations, and anywhere where he could get the word out about Rambler. Rambler sales took off in 1958, up by 58.7% and 425 new dealers were signed up. 1958 became AMC's first year of profitability since its formation, to $28 million. The Nash and Hudson brands were dropped and Rambler
Rambler or Ramble may refer to:
Places
* Rambler, Wyoming
* Rambler Channel (藍巴勒海峽), separates Tsing Yi Island and the mainland New Territories in Hong Kong
* The Ramble and Lake, Central Park, an area within New York City's Centr ...
became a marque in its own right and the mainstay of the company. The popular British-built Metropolitan subcompact continued as a standalone brand until it was discontinued in 1961. The prototype 1958 Nash Ambassador
The Nash Ambassador is a luxury automobile that was produced by Nash Motors from 1927 until 1957. For the first five years it was a top trim level, then from 1932 on a standalone model. Ambassadors were lavishly equipped and beautifully construc ...
/ Hudson Hornet
The Hudson Hornet is a full-sized automobile that was manufactured by Hudson Motor Car Company of Detroit, Michigan from 1951 until 1954, when Nash-Kelvinator and Hudson merged to form American Motors Corporation (AMC). Hudson automobiles ...
, built on a stretched Rambler platform, was renamed at the last minute as "Ambassador by Rambler". To round out the model line American Motors reintroduced the old 1955, wheelbase Nash Rambler
The Nash Rambler is a North American automobile that was produced by the Nash Motors division of Nash-Kelvinator Corporation from 1950 to 1954 in sedan, wagon, and fixed-profile convertible body styles.
On 1 May 1954, Nash-Kelvinator merged ...
as the new Rambler American
The Rambler American is a compact car that was manufactured by the American Motors Corporation (AMC) between 1958 and 1969. The American was the second incarnation of AMC forerunner Nash Motors' compact Rambler that was introduced in 1950 a ...
with only a few modifications. This gave Rambler a compact lineup that included the wheelbase American, wheelbase Rambler Six
The Rambler Six and the Rambler V8 are intermediate sized automobiles that were built and marketed by American Motors Corporation (AMC) from 1956 to 1960.
Launched on 15 December 1955, the 1956 model year Rambler Six ushered a "new era in moto ...
and Rebel V8, as well as the wheelbase Ambassador.
The "dinosaur-fighter"
Sales of Ramblers soared in the late 1950s in part because of American Motors' focus on the compact car and its marketing efforts. These included sponsoring the hugely popular Walt Disney anthology television series
The Walt Disney Company has produced an anthology television series since 1954 under several titles and formats. The program's current title, ''The Wonderful World of Disney'', was used from 1969 to 1979 and again from 1991 to the present. The p ...
and as an exhibitor at the Disneyland theme park in Anaheim, California. George Romney himself pitched the Rambler product in the television commercials.
While the "Big Three" introduced ever-larger cars, American Motors followed a "dinosaur-fighter" strategy. George W. Romney
George Wilcken Romney (July 8, 1907 – July 26, 1995) was an American businessman and politician. A member of the Republican Party, he served as chairman and president of American Motors Corporation from 1954 to 1962, the 43rd gover ...
's leadership focused the company on the compact car, a fuel-efficient vehicle 20 years before there was a real need for them. This gave Romney a high profile in the media. Two core strategic factors came into play: (1) the use of shared components in American Motors products and (2) a refusal to participate in the Big Three's restyling race. This cost-control policy helped Rambler develop a reputation for building solid economy cars. Company officials were confident in the changing market and in 1959 announced a $10 million (US$ in 2016 dollars) expansion of its Kenosha complex (to increase annual straight-time capacity from 300,000 to 440,000 cars). A letter to shareholders in 1959 claimed that the introduction of new compact cars by American Motors's large domestic competitors (for the 1960 model year) "signals the end of big-car domination in the U.S." and that American Motors predicts small-car sales in the U.S. may reach 3 million units by 1963.[
American Motors was also beginning to experiment in non-gasoline powered automobiles. On April 1, 1959, American Motors and Sonotone Corporation announced a joint research effort to consider producing an ]electric car
An electric car, battery electric car, or all-electric car is an automobile that is propelled by one or more electric motors, using only energy stored in batteries. Compared to internal combustion engine (ICE) vehicles, electric cars are quie ...
that was to be powered by a "self-charging" battery. Sonotone had the technology for making sintered plate nickel–cadmium batteries that can be recharged very rapidly and are lighter than a typical automobile lead–acid battery
The lead–acid battery is a type of rechargeable battery first invented in 1859 by French physicist Gaston Planté. It is the first type of rechargeable battery ever created. Compared to modern rechargeable batteries, lead–acid batteries have ...
.
In 1959, American Motors hired designer Dick Teague, who had previously worked for General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
, Packard
Packard or Packard Motor Car Company was an American luxury automobile company located in Detroit, Michigan. The first Packard automobiles were produced in 1899, and the last Packards were built in South Bend, Indiana in 1958.
One of the "Thr ...
, and Chrysler
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...
; after Edmund E. Anderson
Edmund E. Anderson (April 29, 1906 – October 23, 1989) was an automotive designer in the North American automotive industry at General Motors and notably as the lead designer for American Motors Corporation (AMC) from 1950 to 1961.
Early l ...
left the company in 1961, Teague was named principal designer and in 1964, Vice President.
Changing focus in the 1960s
Innovation
In an effort to stay competitive, American Motors produced a wide range of products during the 1960s and added innovations long before the "Big Three" introduced them.
For example, the Rambler Classic was equipped with a standard tandem master cylinder
In automotive engineering, the master cylinder is a control device that converts force (commonly from a driver's foot) into hydraulic pressure. This device controls slave cylinders located at the other end of the hydraulic brake system.
A ...
in 1962 that provided stopping ability even if there was a failure in the brake system. Only Cadillac
The Cadillac Motor Car Division () is a division of the American automobile manufacturer General Motors (GM) that designs and builds luxury vehicles. Its major markets are the United States, Canada, and China. Cadillac models are distributed i ...
also included this safety feature six years before U.S. safety regulations required it on all cars.
Rambler also was an early pioneer in offering an automatic shift indicator sequence (P R N D2 D1 L, where if one selected "D2", the car started in second gear, while "1" started in first gear) on its "Flash-O-Matic" transmission which is similar to today's "PRNDSL" shift pattern, made mandatory for the 1968 model year cars, which required a neutral position between reverse and drive, while General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
still offered a shift selector that had reverse immediately next to low gear (PNDSLR) well into the 1960s.
Unique in the domestic automotive industry, American Motors offered adjustable front seat backrests from their Nash-origin, and in 1964, the Classic and Ambassador were equipped with standard dual reclining front seats nearly a decade before the Big Three offered them as options. Bendix disc brake
A disc brake is a type of brake that uses the calipers to squeeze pairs of pads against a disc or a "rotor" to create friction. This action slows the rotation of a shaft, such as a vehicle axle, either to reduce its rotational speed or to hol ...
s were made standard on the Marlin and optional on other models in 1965. This made the Marlin one of the first modern American cars with standard disc brakes, while the Big Three did not offer them until the early 1970s on most of their models to meet Federal Motor Vehicle Safety Standards
The Federal Motor Vehicle Safety Standards (FMVSS) are U.S. federal vehicle regulations specifying design, construction, performance, and durability requirements for motor vehicles and regulated automobile safety-related components, systems, and d ...
.
In the early part of the decade, sales were strong, thanks in no small part to the company's history of building small cars, which came into vogue in 1961. In both 1960 and 1961, Ramblers ranked in third place among domestic automobile sales, up from third on the strength of small-car sales, even in the face of a lot of new competition.[ Romney's strategic focus was very successful as reflected in the firm's healthy profits year after year. The company became completely debt-free. The financial success allowed the company to reach an agreement on August 26, 1961, with the ]United Auto Workers
The International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America, better known as the United Auto Workers (UAW), is an American labor union that represents workers in the United States (including Puerto Rico ...
for a profit sharing
Profit sharing is various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses. In publicly traded companies thes ...
plan that was new in the automobile industry. Its new three-year labor contract also included generous annual improvement pay increases, as well as automatic cost-of-living raises. However, in 1962, Romney resigned to run for Governor of Michigan
Michigan () is a state in the Great Lakes region of the upper Midwestern United States. With a population of nearly 10.12 million and an area of nearly , Michigan is the 10th-largest state by population, the 11th-largest by area, and the ...
. His replacement was Roy Abernethy, American Motors's successful sales executive.
By 1964, Studebaker production in the United States had ended, and its Canadian operations ceased in 1966. The "Big Three", plus the smaller American Motors, Kaiser Jeep
Kaiser Jeep was the result of the 1953 merger of Kaiser Motors, an independent passenger car maker based in Willow Run, Michigan, with the Toledo, Ohio-based Willys-Overland Company.
Willys-Overland had been at one point before World War II th ...
, International Harvester
The International Harvester Company (often abbreviated by IHC, IH, or simply International ( colloq.)) was an American manufacturer of agricultural and construction equipment, automobiles, commercial trucks, lawn and garden products, household e ...
, Avanti, and Checker companies were the remaining North American auto manufacturers.
Abernethy believed that American Motors's reputation of building reliable economical cars could be translated into a new strategy that could follow AMC buyers as they traded up into larger, more expensive vehicles. American Motors, in reality, had produced large cars throughout most of its history, The Rambler Ambassadors were every bit as large as a full-sized Ford or Chevy. There was only an absence of largest sized cars from the American Motors lineup in 1963 and 1964 The first cars bearing his signature were the 1965 models. The 1965 models were a major makeover of the new platform that had just been introduced in 1963. These were a longer Ambassador
An ambassador is an official envoy, especially a high-ranking diplomat who represents a state and is usually accredited to another sovereign state or to an international organization as the resident representative of their own government or sov ...
series and new convertible
A convertible or cabriolet () is a passenger car that can be driven with or without a roof in place. The methods of retracting and storing the roof vary among eras and manufacturers.
A convertible car's design allows an open-air driving expe ...
s for the larger models. During mid-year a fastback
A fastback is an automotive styling feature, defined by the rear of the car having a single slope from the roof to the tail. The kammback is a type of fastback style.
Some models, such as the Ford Mustang, have been specifically marketed as ...
, called the Marlin
Marlins are fish from the family Istiophoridae, which includes about 10 species. A marlin has an elongated body, a spear-like snout or bill, and a long, rigid dorsal fin which extends forward to form a crest. Its common name is thought to deri ...
, was added. It competed directly with cars like the Dodge Charger, but AMC's "family-sized" fastback emphasized personal-luxury.
Tough choices
The continuing quest "in the business world's toughest race – the grinding contest against the Big Three automobile makers" also meant annual styling changes requiring large expenditures. American Motors's management total confidence "that the new 1965 models would stem a bother some decline" actually began falling behind in share of sales.
Moreover, a new line of redesigned cars in the full and mid-sized markets was launched in the fall of 1966. The cars won acclaim for their fluid styling, and Abernethy's ideas did work as Ambassador sales increased significantly. The dated designs of the Rambler Americans, however, hurt its sales which offset gains from Ambassador sales. There were quality control problems with the introduction of the new full-sized cars, as well as persistent rumors of the company's demise because of their precarious cash flow. Consumer Reports' negative ratings for American Motors' safety did not help.
During this time, AMC's international sales were expanding. From only 18,000 cars five years ago, the 1965 model year AMC sold 74,420 cars in Canada, Europe, and Latin America. AMC remained the biggest U.S. seller of autos in both France and Germany.
Abernethy also called for the de-emphasis of the Rambler brand, because he believed the public associated it too strongly with economy cars, and that it was hindering the sale of American Motors' other models at a time when mid and luxury car sales were very strong. As a result, he ordered that for 1966, the Ambassador and Marlin were to be badged purely as a product of American Motors. The strategy shift at first seemed to be working because sales of the redesigned 1965 and 1966 Ambassadors improved, even as AMC's overall production decreased from the record level achieved in 1963. However, corporate earnings per share were a meager 27 cents per share, the lowest since AMC made its famous compact car comeback in 1958. Investors received a message of the changing fortune of the automaker when the company's 1966 annual financial report was delivered in a plain brown wrapper, instead of the previous year's glossy cover.
A completely new design was also slated for the larger 1967 models. This strategy added $60 million in retooling costs, which was a major stretch for the company. The new models shared fewer parts with each other and were more expensive to build. Abernethy continued his objective to position the new Rebel
A rebel is a participant in a rebellion.
Rebel or rebels may also refer to:
People
* Rebel (given name)
* Rebel (surname)
* Patriot (American Revolution), during the American Revolution
* American Southerners, as a form of self-identification; ...
and Ambassador designs on an equal basis with competitive economy models marketed by the Big Three.
American Motors did not have their own electric car program as did the Big Three, and after some negotiation, a contract was drawn in 1967 with Gulton Industries to develop a new battery based on lithium
Lithium (from el, λίθος, lithos, lit=stone) is a chemical element with the symbol Li and atomic number 3. It is a soft, silvery-white alkali metal. Under standard conditions, it is the least dense metal and the least dense solid el ...
and a speed controller designed by Victor Wouk. A nickel-cadmium battery powered 1969 Rambler station wagon demonstrated the power systems that according to the scientist was a "wonderful car".[ This was also the start of other "plug-in"-type experimental American Motors vehicles developed with Gulton – the ]Amitron
The AMC Amitron was an experimental electric subcompact car built in 1967 by American Motors Corporation (AMC) and Gulton Industries. It included many advanced features, including regenerative braking and advanced battery designs, to provide a ...
city concept car and later the similar Electron
The electron ( or ) is a subatomic particle with a negative one elementary electric charge. Electrons belong to the first generation of the lepton particle family,
and are generally thought to be elementary particles because they have no kn ...
.
Although the new models were well-received by the Motor industry media the last quarter sales for AMC ended September 30, 1966 (AMC was not on a calendar fiscal year) were disappointing. The company recorded a balance sheet loss of $12,648,000 for the year before Tax Credits and deferred Tax Assets. By this time the Board had lost confidence in Abernethy due to his huge spending which had unstabilized the company and each year under his leadership the company had suffered huge financial losses. As a result, Abernethy was forced into taking an "early retirement" from American Motors on January 9, 1967. Abernethy was replaced by Roy D. Chapin Jr.
Roy Dikeman Chapin Jr. (September 21, 1915 – August 5, 2001) was the chairman and chief executive officer of American Motors Corporation (AMC). Chapin's father, Roy D. Chapin Sr., was one of the co-founders of the Hudson Motor Car Company; Hud ...
(son of Hudson Motors founder Roy D. Chapin). Chapin quickly instituted changes to American Motors's offerings and tried to regain market share by focusing on younger demographic markets. Chapin's first decision was to cut the price of the Rambler to within US$200 of the basic Volkswagen Beetle
The Volkswagen Beetle—officially the Volkswagen Type 1, informally in German (meaning "beetle"), in parts of the English-speaking world the Bug, and known by many other nicknames in other languages—is a two-door, rear-engine economy car, ...
. Innovative marketing ideas included making air conditioning
Air conditioning, often abbreviated as A/C or AC, is the process of removing heat from an enclosed space to achieve a more comfortable interior environment (sometimes referred to as 'comfort cooling') and in some cases also strictly controlling ...
standard on all 1968 Ambassador models (available as a delete option). This made American Motors the first U.S. automaker to make air conditioning standard equipment on a line of cars, preceding even luxury makes such as Lincoln
Lincoln most commonly refers to:
* Abraham Lincoln (1809–1865), the sixteenth president of the United States
* Lincoln, England, cathedral city and county town of Lincolnshire, England
* Lincoln, Nebraska, the capital of Nebraska, U.S.
* Lincol ...
, Imperial
Imperial is that which relates to an empire, emperor, or imperialism.
Imperial or The Imperial may also refer to:
Places
United States
* Imperial, California
* Imperial, Missouri
* Imperial, Nebraska
* Imperial, Pennsylvania
* Imperial, Texa ...
, and Cadillac
The Cadillac Motor Car Division () is a division of the American automobile manufacturer General Motors (GM) that designs and builds luxury vehicles. Its major markets are the United States, Canada, and China. Cadillac models are distributed i ...
.
The company introduced exciting entries for the decade's muscle car
Muscle car is a description according to ''Merriam-Webster Dictionary'' that came to use in 1966 for "a group of American-made two-door sports coupes with powerful engines designed for high-performance driving." The '' Britannica Dictionary'' ...
boom, most notably the AMX, while the Javelin
A javelin is a light spear designed primarily to be thrown, historically as a ranged weapon, but today predominantly for sport. The javelin is almost always thrown by hand, unlike the sling, bow, and crossbow, which launch projectiles with th ...
served as the company's entrant into the sporty "pony car" market created by the Ford Mustang
The Ford Mustang is a series of American automobiles manufactured by Ford. In continuous production since 1964, the Mustang is currently the longest-produced Ford car nameplate. Currently in its sixth generation, it is the fifth-best selli ...
. Additional operating cash was derived in 1968 through the sale of Kelvinator
Kelvinator was an American home appliance manufacturer and a line of domestic refrigerators that was the namesake of the company. Although as a company it is now defunct, the name still exists as a brand name owned by Electrolux AB. It takes its ...
Appliance, once one of the firm's core operating units. The Kelvinator divestiture left American Motors a downsized company solely manufacturing automobiles.
The Rambler marque was discontinued in 1968 leaving only the Rambler American as the last product to bear the name, until 1969. The Rambler brand continued to be used only for export markets with Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
being the last market to use it in 1983. From 1970, American Motors was the brand used for all American Motors passenger cars; and all vehicles from that date bore the American Motors name and the new corporate logo. However, the names "American Motors" and "AMC" were used interchangeably in corporate literature well into the 1980s. The branding issue was further complicated when the company's Eagle
Eagle is the common name for many large birds of prey of the family Accipitridae. Eagles belong to several groups of genera, some of which are closely related. Most of the 68 species of eagle are from Eurasia and Africa. Outside this area, just ...
all-wheel drive
An all-wheel drive vehicle (AWD vehicle) is one with a powertrain capable of providing power to all its wheels, whether full-time or on-demand.
The most common forms of all-wheel drive are:
;1x1 : All unicycles Reflecting one axle with one w ...
passenger cars were marketed as the American Eagle in the 1980s.
1970s product developments
Jeep
In the late 1960s Kaiser Jeep
Kaiser Jeep was the result of the 1953 merger of Kaiser Motors, an independent passenger car maker based in Willow Run, Michigan, with the Toledo, Ohio-based Willys-Overland Company.
Willys-Overland had been at one point before World War II th ...
Corporation (formerly Willys
Willys (pronounced , "Willis" )
was a brand name used by Willys–Overland Motors, an American automobile company, founded by John North Willys. It was best known for its design and production of World War II era and later military jeeps (MBs ...
-Overland) decided to leave the automotive industry and sought a buyer for its money-losing Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
division. American Motors's vice president for manufacturing, Gerald C. Meyers
Gerald Carl Meyers (born December 5, 1928), former chairman and CEO of American Motors Corporation (AMC) is an industrialist, author, lecturer, and management consultant.
Early life
Born December 5, 1928, in Buffalo, New York, Meyers attended p ...
headed the team sent to evaluate Kaiser's Jeep factories. Although opposed by AMC's top management, Chapin made a major decision in February 1970 to purchase Kaiser's Jeep operations for $70 million. Although it was a gamble Chapin believed that Jeep vehicles would complement American Motors's passenger car business. The Jeep market was also a market in which the Big Three had no presence, and therefore there was no competition. American Motors gained the iconic Jeep brand of light trucks and SUVs, as well as Kaiser-Jeep's government contracts – notably the M151 line of military Jeeps and the DJ-Series postal Jeeps. American Motors also expanded its international network. The military and special products business was reconstituted as American Motors General Products Division, later reorganized as AM General
AM General is an American heavy vehicle and contract automotive manufacturer based in South Bend, Indiana. It is best known for the civilian Hummer H1, Hummer and the military Humvee that are assembled in Mishawaka, Indiana. For a relatively brie ...
.
Hornet and Gremlin
In 1970, American Motors consolidated all passenger cars under one distinct brand identity and debuted the Hornet
Hornets (insects in the genus ''Vespa'') are the largest of the eusocial wasps, and are similar in appearance to their close relatives yellowjackets. Some species can reach up to in length. They are distinguished from other vespine wasps by th ...
range of compact cars. The Hornet and the later Gremlin
A gremlin is a mischievous folkloric creature invented at the beginning of the 20th century to originally explain malfunctions in aircraft and later in other machinery and processes and their operators. Depictions of these creatures vary widel ...
shared platforms. The Gremlin, the first North American-built subcompact, sold more than 670,000 units from 1970 through 1978. The Hornet became American Motors' best-selling passenger car since the Rambler Classic, with more than 860,000 units sold by the time production ended in 1977. The Hornet platform continued to be built under a variety of models through 1987.
For a time, both the Hornet and Gremlin could be ordered with Levi's
Levi Strauss & Co. () is an American clothing company known worldwide for its Levi's () brand of denim jeans. It was founded in May 1853 when German-Jewish immigrant Levi Strauss moved from Buttenheim, Bavaria, to San Francisco, California, to o ...
denim interiors.
Matador
The new facelifted, mid-sized AMC Matador replaced the Rebel in 1971, using an advertising campaign that asked, "What's a Matador?" In 1972, American Motors won the tender for Los Angeles Police Department
The Los Angeles Police Department (LAPD), officially known as the City of Los Angeles Police Department, is the municipal police department of Los Angeles, California. With 9,974 police officers and 3,000 civilian staff, it is the third-large ...
cruisers, and Matadors were used by the department from 1972 until 1975, replacing the Plymouth Satellite
The Plymouth Satellite is a mid-size automobile introduced in the 1965 model year as the top trim model in Plymouth's "B" platform Belvedere line. Available initially in two-door hardtop and convertible models, the Satellite remained the top-of- ...
. American Motors supplied Mark VII Limited
Mark VII Limited was the production company of actor and filmmaker Jack Webb, and was active from 1951 to his death in 1982. Many of its series were produced in association with Universal Television; most of them aired on the NBC television networ ...
owner Jack Webb
John Randolph Webb (April 2, 1920 – December 23, 1982) was an American actor, television producer, Television director, director, and screenwriter, who is most famous for his role as Joe Friday, Sgt. Joe Friday in the Dragnet (franchise) ...
with two Matadors, a sedan and a wagon, for use in his popular television series ''Adam-12
''Adam-12'' is an American television police procedural crime drama television series created by Robert A. Cinader and Jack Webb. The series follows Los Angeles Police Department (LAPD) officers Pete Malloy and Jim Reed as they patrol the stre ...
'', increasing the cars' public profile. Matadors saw fleet use as taxis, government, as well as police, and fire vehicles in some states.
In 1973, American Motors signed a licensing agreement with Curtiss-Wright
The Curtiss-Wright Corporation is a manufacturer and services provider headquartered in Davidson, North Carolina, with factories and operations in and outside the United States. Created in 1929 from the consolidation of Curtiss, Wright, and v ...
to build Wankel engine
The Wankel engine (, ) is a type of internal combustion engine using an Eccentric (mechanism), eccentric rotary combustion engine, rotary design to convert pressure into rotating motion. It was invented by German engineer Felix Wankel, and desi ...
s for cars and Jeeps.
Starting in 1974, the Matador sedan and station wagon were mildly refreshed, with new boxier front and rear ends, making it full-sized. This second generation model was made virtually unchanged until 1978.
Ambassador
From 1970 the Rebel and Ambassador were identical from the A-pillar back. The Ambassador continued as American Motors' upmarket model with more choices of creature comforts and with air conditioning as standard. From the A-pillar forward the Ambassador was redesigned and stretched to become the biggest ever, just as the 1973 Arab Oil Embargo sparked gasoline rationing across the nation. The additional length was due to a new front end design and stronger energy-absorbing bumpers required of all automobiles sold in the U.S. Sales of all large cars fell due to economic problems and rising gasoline prices. The Ambassador became a full-sized car in 1974 and was discontinued after the 1974 model year, leaving only the Matador as American Motors's full-size offering. Nash and American Motors made Ambassadors from 1927 through 1974, the longest use of the same model name for any American Motors product and, at the time, the longest continuously used nameplate in the industry.
Matador Coupe
In 1974, the first-generation Matador two-door hardtop, known as the "flying brick" due to its poor aerodynamics in NASCAR
The National Association for Stock Car Auto Racing, LLC (NASCAR) is an American auto racing sanctioning and operating company that is best known for stock car racing. The privately owned company was founded by Bill France Sr. in 1948, and hi ...
competition, was replaced at great cost with a sleek, smoothly shaped, and radically styled two-door coupe. The model received praise for its design, including "Best Styled Car of 1974" by ''Car and Driver
''Car and Driver'' (''CD'' or ''C/D'') is an American automotive enthusiast magazine. In 2006 its total circulation was 1.23 million. It is owned by Hearst Magazines, who purchased prior owner Hachette Filipacchi Media U.S. in 2011. It was fou ...
'' magazine, customer satisfaction, and sold almost 100,000 coupes over a five-year period. The Matador Coupe shared few components with the Matador sedan and station wagon other than suspension, drive train, some trim, and interior parts.
Metropolitan Buses
In 1974, American Motors's AM General subsidiary began building urban transit buses in cooperation with Flyer Industries of Winnipeg
Winnipeg () is the capital and largest city of the province of Manitoba in Canada. It is centred on the confluence of the Red and Assiniboine rivers, near the longitudinal centre of North America. , Winnipeg had a city population of 749,6 ...
, Manitoba. A total of 5,431 ''Metropolitan'' buses, including 219 electric trolley buses, were built before production ceased in 1979. Production of diesel buses had ceased in 1978, with only trolley bus production taking place in 1979.
Pacer
The AMC Pacer
The AMC Pacer is a two-door compact car produced in the United States by American Motors Corporation (AMC) from the 1975 through the 1980 model years. The Pacer was also made in Mexico by Vehículos Automotores Mexicanos (VAM) from 1976 until ...
, an innovative all-new model introduced in March 1975 and marketed as "the first wide small car", was a subcompact designed to provide the comfort of a full-sized car. Its pre-production development coincided with tightened U.S. Federal passenger emissions
Emission may refer to:
Chemical products
* Emission of air pollutants, notably:
**Flue gas, gas exiting to the atmosphere via a flue
** Exhaust gas, flue gas generated by fuel combustion
** Emission of greenhouse gases, which absorb and emit rad ...
and auto safety regulations.
With the Arab Oil Embargo of 1973, General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
aborted the Wankel rotary engine
The Wankel engine (, ) is a type of internal combustion engine using an eccentric rotary design to convert pressure into rotating motion. It was invented by German engineer Felix Wankel, and designed by German engineer Hanns-Dieter Paschke. T ...
around which the Pacer had been designed, as its fuel consumption exceeded that of conventional engines with similar power. Therefore, American Motors's existing AMC Straight-6 engines were used in the Pacer instead. The fuel economy was better than a rotary engine, but still relatively low in light of the new focus on energy efficiency. Also, as the Pacer shared few components other than drivetrain with other American Motors cars, it was expensive to make and the cost increased when sales fell steeply after the first two years.
Development and production costs for the Pacer and Matador Coupe drained capital which might otherwise have been invested in updating the more popular Hornet and Gremlin lines so that toward the end of the 1970s the company faced the growing energy crisis with aged products that were uncompetitive in hotly contested markets. However, "AMC used cars, as far back as 1967, had the advantage of good warranty coverage … so most owners were conscious of low-cost car maintenance … AMC units ecamesome of the very best buys on the used car market" by 1975.
The 1977 Gremlin had redesigned headlights, grille, rear hatch, and fascia. For economy in the fuel crisis, American Motors offered the car with a more fuel-efficient Volkswagen
Volkswagen (),English: , . abbreviated as VW (), is a German Automotive industry, motor vehicle manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Founded in 1937 by the German Labour Front under the Nazi Party and revived into a ...
-designed Audi
Audi AG () is a German automotive manufacturer of luxury vehicles headquartered in Ingolstadt, Bavaria, Germany. As a subsidiary of its parent company, the Volkswagen Group, Audi produces vehicles in nine production facilities worldwide.
Th ...
4-cylinder engine . The engine was expensive for American Motors to build and the Gremlin retained the less costly but also less economical as standard equipment.
The AMX nameplate was revived in 1977. It was a sporty appearance package on the Hornet
Hornets (insects in the genus ''Vespa'') are the largest of the eusocial wasps, and are similar in appearance to their close relatives yellowjackets. Some species can reach up to in length. They are distinguished from other vespine wasps by th ...
hatchback
A hatchback is a car body configuration with a rear door that swings upward to provide access to a cargo area. Hatchbacks may feature fold-down second row seating, where the interior can be reconfigured to prioritize passenger or cargo volume. ...
featuring upgrades, as well as the inline six as standard with a choice of three-speed automatic or four-speed manual transmissions. The V8 engine
A V8 engine is an eight-cylinder piston engine in which two banks of four cylinders share a common crankshaft and are arranged in a V configuration.
The first V8 engine was produced by the French Antoinette company in 1904, developed and us ...
was optional with the automatic transmission.
As all Matadors now received standard equipment that was formerly optional (e.g. power steering, automatic transmission), the "Brougham" package was dropped. Optional on the Matador coupe was a landau vinyl roof with opera windows, and top-line Barcelonas offered new two-tone paint.
Concord
For 1978, the Hornet platform
Platform may refer to:
Technology
* Computing platform, a framework on which applications may be run
* Platform game, a genre of video games
* Car platform, a set of components shared by several vehicle models
* Weapons platform, a system or ...
was redesigned with an adaptation of the new Gremlin front-end design and renamed AMC Concord
The AMC Concord is a compact car manufactured and marketed by the American Motors Corporation for model years 1978–1983. The Concord was essentially a revision of the AMC Hornet that was discontinued after 1977, but more luxurious, quieter, ...
. American Motors targeted it at the emerging "premium compact" market segment, paying particular attention to ride and handling, standard equipment, trim, and interior luxury.
Gremlins borrowed the Concord instrument panel, as well as a Hornet AMX-inspired GT sports appearance package and a new striping treatment for X models.
The AMC Pacer hood was modified to clear a V8 engine, and a Sports package replaced the former X package. With falling sales of Matador Coupes, sedans and wagons, their V8 engine was dropped, leaving only the Inline-6 (standard on coupes and sedans) and the V8 (optional on coupes and sedans, standard on wagons). The two-tone Barcelona luxury package was offered on Matador sedans, and two-tone red paint was introduced as an additional Barcelona option. Matador production ceased at the end of the model year with total sales of 10,576 units. The Matador was no longer attractive as automakers struggled to overcome economic woes including continuing fuel price increases and double-digit domestic inflation.
Spirit
In 1979, the Spirit
Spirit or spirits may refer to:
Liquor and other volatile liquids
* Spirits, a.k.a. liquor, distilled alcoholic drinks
* Spirit or tincture, an extract of plant or animal material dissolved in ethanol
* Volatile (especially flammable) liquids, ...
sedan replaced the Gremlin. A new fastback version of the car, the Spirit Liftback
A liftback is a variation of hatchback with a sloping roofline between 45 and 5 degrees. Traditional hatchback designs usually have a 90 to 46 degree slope on the tailgate or rear door. As such the liftback is essentially a hatchback with a more ...
, proved successful.
In December, Pacer production ceased after a small run of 1980 models was built to use up parts stock.
Concords received a new front-end treatment, and in their final season, hatchbacks became available in DL trim. On May 1, 1979, American Motors marked the 25th anniversary of the Nash-Hudson merger with "Silver Anniversary" editions of the AMC Concord and Jeep CJ in two-tone silver (Jeeps then accounted for around 50 percent of the company's sales and most of their profits); and introduced LeCar, a U.S. version of the small, fuel-efficient Renault 5
The Renault 5 is a four-passenger, three or five-door, front-engine, front-wheel drive hatchback supermini manufactured and marketed by the French automaker Renault over two generations: 1972–1985 (also called R5) and 1984–1996 (also called S ...
, in dealer showrooms.
Concord and Spirit models were dropped after 1983.
File:Jeep Cherokee SJ Chief S f.jpg, Jeep Cherokee (SJ) Chief S
File:1972 AMC Gremlin X green 5-litre V8 Nashville.jpg, 1972 Gremlin X
File:1975 AMC Matador base sedan in Fawn Beige 03.jpg, 1975 second-generation Matador sedan
File:1971 AMC Ambassador 2-door hardtop (26912016752).jpg, 1971 Ambassador hardtop with "Brougham" trim
File:Matador1.JPG, 1974 Matador X Coupe
File:Portland AM General bus in 1984.jpg, AM General transit bus
File:1975 AMC Pacer base model frontrightside.jpg, 1975 AMC Pacer
File:1976 AMC Hornet Sportabout.jpg, 1976 Hornet Sportabout
File:1979 AMC Concord two-door sedan at 2015 AMO meet-04.jpg, 1979 Concord two-door sedan
File:1979 AMC Spirit GT V8 Russet FR.jpg, 1979 Spirit GT
Financial developments, Renault partnership
Late 1970s
In February 1977, ''Time'' magazine reported that although American Motors had lost $73.8 million in the previous two fiscal years, U.S. banks had agreed to a year's extension for a $72.5 million credit that had expired in January; that stockholders had received no dividends since 1974; and that Pacer sales did not match expectations. However, Time noted record Jeep sales and a backlog of orders for AM General's buses.
In July 1977 it was announced that the General Services Administration
The General Services Administration (GSA) is an independent agency of the United States government established in 1949 to help manage and support the basic functioning of federal agencies. GSA supplies products and communications for U.S. gover ...
of the Federal U.S government had awarded AMC a three year contract worth $15 miIlion dollars to lease 5,838 cars. Since the beginning of the fiscal year on October 1, 1976, the GSA had purchased 8,700 cars from AMC for $30-million.
On October 21, 1977, Roy Chapin Jr. retired and Gerald C. Meyers became Chairman and CEO.[
On March 31, 1978, American Motors and Renault announced a sweeping agreement for the joint manufacture and distribution of cars and trucks that would achieve benefits for both. A month later, American Motors announced that it would halt the production of standard urban ]transit bus
Transit may refer to:
Arts and entertainment Film
* ''Transit'' (1979 film), a 1979 Israeli film
* ''Transit'' (2005 film), a film produced by MTV and Staying-Alive about four people in countries in the world
* ''Transit'' (2006 film), a 2006 ...
es after about 4,300 were sold by its AM General subsidiary over a period of three years. In May 1978, the U.S. Environmental Protection Agency ordered the recall of all American Motors's 1976 cars (except those conforming to California emissions regulations) – some 270,000 vehicles— plus 40,000 1975 and 1976 Jeeps and mini trucks, for correction of a fault in the pollution control system. Total cost was estimated at up to $3 million—more than AMC had earned the previous quarter.
American Motors lost an estimated $65 million on its conventional (non-Jeep) cars for the fiscal year ended September 30, 1978, but strong Jeep sales helped the company to an overall $36.7 million profit on sales of $2.6 billion. However, American Motors faced costly engineering work to bring their Jeeps into compliance with a federal directive for all 4-wheel-drive vehicles to average by 1981.
A year later, with its share of the American market at 1.83%, the company struck a deal with Renault, the nationally owned French automaker. American Motors would receive a $150 million cash injection, $50 million in credits, and also the rights to start building the Renault 5
The Renault 5 is a four-passenger, three or five-door, front-engine, front-wheel drive hatchback supermini manufactured and marketed by the French automaker Renault over two generations: 1972–1985 (also called R5) and 1984–1996 (also called S ...
in 1982. (A deal for Renault products to be sold through the American Motors-Jeep dealer network had already been made in 1979). In return, Renault acquired a 22.5% interest in American Motors.[ This was not the first time the two companies had worked together. Lacking its own prestige model line in the early 1960s, Renault assembled CKD kits and marketed Rambler cars in France.
In 1979, American Motors announced a record $83.9 million profit on sales of $3.1 billion (US$ in dollars) for the fiscal year ending in September—this despite an economic downturn, soaring energy prices, rising American unemployment, automobile plants shutting down, and an American market trend towards imported cars.
]
1980s
In 1980, all American Motors cars received a new rust-proofing process called Ziebart
Ziebart International Corporation is a privately owned corporation based in Troy, Michigan, and is the worldwide franchisor of the Ziebart brand of automotive aftermarket stores.
Services offered by Ziebart stores include rustproofing, paint se ...
Factory Rust Protection. This included aluminized trim screws, plastic inner fender liners, galvanized steel in every exterior body panel, and a deep-dip (up to the window line) bath in epoxy-based primer. American Motors backed up the rust protection program with a 5-year "No Rust Thru" component to its comprehensive "Buyer Protection Plan".
A drop in Jeep sales caused by the declining economy and soaring energy prices began to constrict American Motors' cash flow. At the same time, pressure increased on the company's non-Jeep product lines. The face-lifts and rebranding of American Motors's once-innovative and successful cars were not enough in a competitive landscape that had changed dramatically. No longer was the threat limited to the Big Three automakers (General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
, Ford
Ford commonly refers to:
* Ford Motor Company, an automobile manufacturer founded by Henry Ford
* Ford (crossing), a shallow crossing on a river
Ford may also refer to:
Ford Motor Company
* Henry Ford, founder of the Ford Motor Company
* Ford F ...
, and Chrysler
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...
). The Japanese manufacturers (Honda
is a Japanese public multinational conglomerate manufacturer of automobiles, motorcycles, and power equipment, headquartered in Minato, Tokyo, Japan.
Honda has been the world's largest motorcycle manufacturer since 1959, reaching a product ...
, Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
, Nissan
, trade name, trading as Nissan Motor Corporation and often shortened to Nissan, is a Japanese multinational corporation, multinational Automotive industry, automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan. The company sells ...
) used streamlined production methods such as outsourcing and Just In Time (JIT) supply-chain management. They had new, highly efficient assembly plants in the United States. And now they targeted the heart of American Motors's passenger product line: small cars.
While Americans turned to the new imports in increasing numbers, American Motors continued its struggle at the inefficient and aging Kenosha, Wisconsin
Kenosha () is a city in the U.S. state of Wisconsin and the seat of Kenosha County. Per the 2020 census, the population was 99,986 which made it the fourth-largest city in Wisconsin. Situated on the southwestern shore of Lake Michigan, Kenos ...
, facilities—the oldest continuously operating automobile plant in the world, where components and unfinished bodies still had to be transported across the city.
In early 1980, the banks refused American Motors further credit. Lacking both capital and resources for the new, truly modern products it needed to offer, the company turned to Renault for a $90 million loan (US$ in dollars). By September that year, American Motors's U.S. market share had fallen to 1.7%, and in November sales dropped 19.1%. American Motors warned stockholders that the company could be bankrupted if they did not approve a plan for Renault to acquire as much as 59% of the company. On December 16, 1980, American Motors shareholders "overwhelmingly approved making the French Government-owned Renault" their company's principal owner. Jean-Marc Lepeu, former corporate treasurer at Renault, became vice president for finance at American Motors. In September 1981, Jose Dedeurwaerder, a Renault veterans of 23 years, mainly in manufacturing, became American Motors's executive vice president for manufacturing.
In January 1982 the company's former president W. Paul Tippett Jr. replaced Gerald C. Meyers as chairman and CEO, and Dedeurwaerder moved up to be president. By this time Renault owned 46% of American Motors. Dedeurwaerder brought a broad perspective at this critical time: he is credited with streamlining many of American Motors' arcane management techniques. He also instituted important improvements in plant layouts, as well as in cost and quality control.
Renault, having increased its stake in the company several times to keep it solvent, eventually owned 49% in 1983. This development is viewed by some as ending American Motors' run as a truly American car company.
New ownership and new management heralded a new product venture for American Motors: a line of modern front-wheel drive
Front-wheel drive (FWD) is a form of engine and transmission layout used in motor vehicles, where the engine drives the front wheels only. Most modern front-wheel drive vehicles feature a transverse engine, rather than the conventional longit ...
cars, designed by Renault, to be produced at Kenosha.
1980s product developments
AMC Eagle
In August 1979, for the 1980 model year, American Motors introduced four-wheel-drive versions of the Spirit
Spirit or spirits may refer to:
Liquor and other volatile liquids
* Spirits, a.k.a. liquor, distilled alcoholic drinks
* Spirit or tincture, an extract of plant or animal material dissolved in ethanol
* Volatile (especially flammable) liquids, ...
and Concord
Concord may refer to:
Meaning "agreement"
* Pact or treaty, frequently between nations (indicating a condition of harmony)
* Harmony, in music
* Agreement (linguistics), a change in the form of a word depending on grammatical features of other ...
, calling the collective line the AMC Eagle
AMC may refer to:
Film and television
* AMC Theatres, an American movie theater chain
* AMC Networks, an American entertainment company
** AMC (TV channel)
** AMC+, streaming service
** AMC Networks International, an entertainment company
*** ...
. Eagles rapidly became one of the company's best-known products and are considered one of the first "crossover SUV
A crossover, crossover SUV, or crossover utility vehicle (CUV) is a type of automobile with an increased ride height that is built on unibody chassis construction shared with passenger cars, as opposed to traditional sport utility vehicles ( ...
s". Eagles used the 2-wheel drive body shells mounted on an all-new platform developed by American Motors in the late 1970s. Featuring an innovative full-time four-wheel-drive system, it sold best in snow-prone areas. Sales started strongly but declined over time. While the two-wheel drive Spirit and Concord were both discontinued after 1983 as the company concentrated on its new Renault Alliance
The Renault Alliance is a front-wheel drive, front-engine subcompact automobile manufactured and marketed in North America by American Motors Corporation (AMC) for model years 1983–1987. The Alliance and its subsequent hatchback variant, the ...
, the Eagle survived for five years longer, albeit only in station wagon form, into the 1988 model year. This meant the four-wheel-drive Eagle was the lone representative of the American Motors brand from 1984 until the 1988 model year. All the company's remaining output was branded Renault or Jeep. The last AMC Eagle was built on December 14, 1987.
Renault Alliance, Encore & GTA
The Renault Alliance was the first joint product of the American Motors-Renault partnership. Introduced in 1983, the Alliance was a front-wheel-drive Renault 9
The Renault 9 and Renault 11 are small family cars produced by the French manufacturer Renault for model years 1981–1988 in saloon (Renault 9) and hatchback (Renault 11) configurations — both were styled by the French automobile designer, Rob ...
compact car slightly restyled for the American market by Dick Teague, mostly to comply with American safety standards, and produced by American Motors at Kenosha. The car was badged as a Renault and some cars also carried American Motors badges. It was available as a sedan with two or four doors and later as a convertible. The hatchback
A hatchback is a car body configuration with a rear door that swings upward to provide access to a cargo area. Hatchbacks may feature fold-down second row seating, where the interior can be reconfigured to prioritize passenger or cargo volume. ...
, introduced in 1984 and badged as the Renault Encore
Groupe Renault ( , , , also known as the Renault Group in English; legally Renault S.A.) is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured ...
, was basically the same as the European Renault 11 model. For the final 1987 model year, a higher-performance version of the Alliance 2 door sedan and the convertible was sold as the Renault GTA. This version had a Renault two-liter engine that was exclusive to it and not shared with the European Renault 9 and 11 models.
The new model, introduced at a time of increased interest in small cars, won several awards including Motor Trend Car of the Year
The ''Motor Trend'' Car of the Year (COTY) is an annual ''Car of the Year'' award given by ''Motor Trend'' magazine to recognize the best new or significantly refreshed car in a given model year.
Background
''Motor Trend'', which debuted in 1 ...
. ''Motor Trend'' declared: "The Alliance may well be the best-assembled first-year car we’ve ever seen. Way to go Renault!" The Alliance was listed as number one on ''Car and Driver
''Car and Driver'' (''CD'' or ''C/D'') is an American automotive enthusiast magazine. In 2006 its total circulation was 1.23 million. It is owned by Hearst Magazines, who purchased prior owner Hachette Filipacchi Media U.S. in 2011. It was fou ...
's'' list of Ten Best cars for 1983. The positive reception and sales of 200,000 Alliances by 1984 was hindered by the availability of only two body styles. The Alliance was a European-designed car and not fully suited to U.S. market demands. The distribution network was also not well supported, which led to the lower quality delivered by dealerships with "disastrous consequences" for the image of the automobiles, as well as high warranty costs because of quality failings which greatly impacted sales from 1985 to the end of production in 1987.
The Encore models were renamed Alliance Hatchback in 1987. Alliance and GTA production ended in June of that year while the Renault 9 and 11 models continued through the 1988 model year in Europe, being replaced by the all-new Renault 19.
Jeeps
More beneficial to American Motors' future was the introduction of an all-new line of compact Jeep Cherokee
The Jeep Cherokee is a line of SUVs manufactured and marketed by Jeep over five generations. Originally marketed as a variant of the Jeep Wagoneer, the Cherokee has evolved from a full-size SUV to one of the first compact SUVs and into its curr ...
and Wagoneer
The Jeep Wagoneer is a sport utility vehicle (SUV) nameplate of Jeep vehicles, with several models marketed for the 1963 through 1993 model years and again since the 2022 model year.
Various versions of the Wagoneer were manufactured in the US ...
models in the autumn of 1983 for the 1984 model year. Renault's Francois Castaing, head of AMC's product development team, designed the new Jeep platform with styling by Dick Teague. Renault was interested in selling the Cherokee in Europe but to meet European expectations the vehicle needed to be lighter and more fuel-efficient. The new XJ was only 3,100 lbs, helped by its unibody construction and lighter seats taken from the Renault 9 and 11
The Renault 9 and Renault 11 are small family cars produced by the French manufacturer Renault for model years 1981–1988 in saloon (Renault 9) and hatchback (Renault 11) configurations — both were styled by the French automobile designer, ...
and new Renault Alliance
The Renault Alliance is a front-wheel drive, front-engine subcompact automobile manufactured and marketed in North America by American Motors Corporation (AMC) for model years 1983–1987. The Alliance and its subsequent hatchback variant, the ...
.
"The new XJ Jeep ... was 1,200 pounds lighter, 31 inches shorter, six inches narrower and four inches lower than the Cherokee SJ it replaced, and yet — thanks to unibody construction — the XJ kept 90 percent of its predecessor's interior volume." And, not only was fuel economy much improved, but "articulation is also better, as is ground clearance, as well as approach, departure and breakover angles. These, along with its smaller profile, make the XJ better both off-road and on."
AMC's initial forecasts of 40,000 Cherokee and Wagoneer sales were shattered with sales amounting to 75,000 in their first year. The three leading Off-roading
Off-roading is the activity of driving or riding in a vehicle on unpaved surfaces such as sand, gravel, riverbeds, mud, snow, rocks, and other natural terrain. Types of off-roading range in intensity, from leisure drives with unmodified vehicl ...
magazines, ''Petersen's 4-Wheel & Off-Road
''Petersen's 4-Wheel & Off-Road'' was an automobile magazine dedicated to 4x4 and off-road trucks and SUVs. The first issue was published in 1977; it began as a special-interest publication from the editors of ''Hot Rod'' magazine. ''4-Wheel & Of ...
'', ''Four Wheeler
4 (four) is a number, numeral and digit. It is the natural number following 3 and preceding 5. It is the smallest semiprime and composite number, and is considered unlucky in many East Asian cultures.
In mathematics
Four is the smallest c ...
'', and ''Off-Road'' each named the new Jeep Cherokee as the "4x4 of the year." The popularity of these downsized Jeeps pioneered a new market segment for what later became defined as the sport utility vehicle
A sport utility vehicle (SUV) is a car classification that combines elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive.
There is no commonly agreed-upon definitio ...
(SUV). They initially used the American Motors 150 C.I.D. () OHV four-cylinder engine with a carburetor
A carburetor (also spelled carburettor) is a device used by an internal combustion engine to control and mix air and fuel entering the engine. The primary method of adding fuel to the intake air is through the venturi tube in the main meteri ...
, and a General Motors-built carbureted V6 was optional. In 1986, throttle-body injection replaced the carburetor on the 2.5 L I4 engines. A Renault Turbo-Diesel I4 diesel
Diesel may refer to:
* Diesel engine, an internal combustion engine where ignition is caused by compression
* Diesel fuel, a liquid fuel used in diesel engines
* Diesel locomotive, a railway locomotive in which the prime mover is a diesel engin ...
was also offered. Starting with the 1987 models, a I6 engine, derived from the older I6 with a new head design and an electronic fuel injection
Fuel injection is the introduction of fuel in an internal combustion engine, most commonly automotive engines, by the means of an injector. This article focuses on fuel injection in reciprocating piston and Wankel rotary engines.
All comp ...
system, replaced the outsourced V6. American Motors' "new" engine was designed with help from Renault and incorporated Renault-Bendix (Renix
Renix (Renix Electronique) was a joint venture by Renault and Bendix that designed and manufactured automobile electronic ignitions, fuel injection systems, electronic automatic transmission controls, and various engine sensors. Major applications ...
) parts for fuel and ignition management. The 4.0 developed an outstanding reputation for reliability and toughness. Retained by Chrysler after the buyout, the design continued to be improved and refined until its discontinuation at the end of the 2006 model year. The 4.0 engine saw extensive application in XJ Cherokees and Wagoneers, Grand Cherokees, and Wranglers, and many of those engines saw (or are seeing) extremely long lives, quite a few exceeding . The XJ Cherokee itself was built by Chrysler until the end of the 2001 model year in the U.S. and until 2005 in China.
Three other designs continued to be used after the Chrysler buyout: the Grand Wagoneer full-size luxury SUV, the full-sized J-series pickups, built on the same chassis as the earlier SJ model Wagoneers and Cherokees that dated from 1963 with the AMC V8, and the Jeep Comanche
The Jeep Comanche (designated MJ) is a pickup truck variant of the Cherokee compact SUV (1984–2001) manufactured and marketed by Jeep for model years 1986-1992 in rear wheel (RWD) and four-wheel drive (4WD) models as well as two cargo bed leng ...
(MJ) compact pickup, which debuted in 1986. Unlike most sport-utility vehicles that are based on adapted pickup truck designs, the Cherokee XJ SUV came first and the Comanche was designed as a later pickup truck version.
Production of the full-sized pickups ceased after 1987. The Grand Wagoneer and 360 V8 engine were dropped after 1991 (the last American-made vehicle whose engine used a carburetor
A carburetor (also spelled carburettor) is a device used by an internal combustion engine to control and mix air and fuel entering the engine. The primary method of adding fuel to the intake air is through the venturi tube in the main meteri ...
for fuel delivery), and the Comanche bowed after 1992.
1985 and the final buyout
Marketplace and management changes
There were significant changes in 1985 as the market moved away from American Motors' small models. With fuel relatively cheap again, buyers turned to larger more powerful automobiles and American Motors was unprepared for this development. Even the venerable Jeep CJ-5 was dropped after a ''60 Minutes
''60 Minutes'' is an American television news magazine broadcast on the CBS television network. Debuting in 1968, the program was created by Don Hewitt and Bill Leonard, who chose to set it apart from other news programs by using a unique styl ...
'' TV news magazine staged exposé of rollover tendencies under extreme conditions. American Motors also confronted an angry workforce. Labor was taking revenge, and reports circulated about sabotage of vehicles on the assembly lines because of the failure to receive promised wage increases. There were rumors that the aging Kenosha plant was to be shut down. At the same time, Chrysler was having trouble meeting the demand for its M-body rear-drive models (Dodge Diplomat
The Dodge Diplomat is an American mid-size car that was produced by Dodge from 1977 to 1989. At launch, it shared a common design with the Chrysler LeBaron and for much of its later production run was the counterpart of the Chrysler Fifth Aven ...
, Plymouth Gran Fury
The Plymouth Gran Fury is a full-sized automobile that was manufactured by Plymouth (automobile), Plymouth from 1975 to 1989. The nameplate would be used on successive Downsize (automobile), downsizings, first in 1980, and again in 1982, through ...
and Chrysler Fifth Avenue
The Chrysler Fifth Avenue was a trim level/option package or model name used by Chrysler for its larger sedans from 1979 to 1993. The Fifth Avenue name was no longer used after 1993 when Chrysler introduced its new LH-platform New Yorker and simil ...
). Because they were assembled using the old "gate and buck system" and the tooling could be easily moved, Chrysler could supply the components and control the quality, while American Motors assembled the car. Therefore, Lee Iacocca and Joe Cappy reached an agreement to use some of American Motors' idle plant capacity in Kenosha.
At the beginning of 1985 Renault's chairman in France, Bernard Hanon, was fired in a shake-up triggered by huge losses. Renault had lost its number one position in Europe, a position it had held from 1980 until 1983. The company had been losing money since 1981 and had fallen to sixth place, behind Ford, Fiat, Volkswagen, Peugeot, and General Motors. Strikes plagued Renault at the end of 1984 and the French government introduced price controls that severely cut the profit margins on cars sold in France, Renault's most important market. In addition to Renault's domestic losses, the company had already invested $545 million in AMC. Hanon was replaced by Georges Besse, ex-president of Produits Chimiques Ugine Kuhlmann in France.
In April 1985 AMC Chairman W. Paul Tippett resigned to become president of a textile company. In December 1985 Jose J. Dedeurwaerder, who had been president since 1982 and CEO since September 1984, became chairman of the executive committee while continuing as president and chief executive officer. Joe Cappy was moved up from executive vice president to chief operating officer and Tippet's position was filled by an ex-Renault vice president, Pierre Semerena.
Semerena made his managerial reputation as a no-nonsense cost cutter. The new management responded with tactical moves by selling the lawn care Wheel Horse
Wheel Horse was a manufacturer of outdoor and garden power equipment, including lawn and garden tractors. The company's headquarters were in South Bend, Indiana, USA.
History
The business was started in the two-car garage of Elmer Pond in 19 ...
Products Division and signing an agreement to build Jeeps in the People's Republic of China. The Pentagon
The Pentagon is the headquarters building of the United States Department of Defense. It was constructed on an accelerated schedule during World War II. As a symbol of the U.S. military, the phrase ''The Pentagon'' is often used as a metony ...
had problems with AM General
AM General is an American heavy vehicle and contract automotive manufacturer based in South Bend, Indiana. It is best known for the civilian Hummer H1, Hummer and the military Humvee that are assembled in Mishawaka, Indiana. For a relatively brie ...
, a significant defense contractor
The arms industry, also known as the arms trade, is a global industry which manufactures and sells weapons and military technology. It consists of a commercial industry involved in the research and development, engineering, production, and serv ...
, being managed by a partially French-government-owned firm. The U.S. government would not allow a foreign government to own a significant portion of an important defense supplier. As a result, the profitable AM General Division was sold. Another milestone was the departure of Dick Teague; American Motors' design vice president for 26 years, he was responsible for many Jeep and AMC designs including the Rambler American, Javelin, Hornet, Gremlin, Pacer, and Matador coupe.
Problems at Renault and assassination
In France, Renault continued to experience financial trouble. The investment in American Motors (including the construction of a new Canadian assembly plant in Brampton
Brampton ( or ) is a city in the Canadian Provinces and territories of Canada, province of Ontario. Brampton is a city in the Greater Toronto Area (GTA) and is a List of municipalities in Ontario#Lower-tier municipalities, lower-tier municipalit ...
, Ontario) forced cuts at home, resulting in the closure of several French plants and mass layoff
A layoff or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing (reducing the ...
s. Renault was down to just three alternatives regarding its American holdings: (1) It could declare American Motors officially bankrupt, thereby losing its investment; (2) It could come up with more money, but Renault management perceived American Motors as a bottomless pit; or (3) American Motors could be put up for sale and the French company could get back part of its investment. At the same time, Renault's new chairman, Georges Besse
Georges Besse (25 December 1927 – 17 November 1986) was a French businessman who led several large state-controlled French companies. He was assassinated outside his Paris home by the terrorist group Action directe. At the time of his death he ...
, continued to champion the French firm's future in the North American market; pointing to the company's completion of the newest and most advanced automotive assembly plant in North America, then known as Bramalea Assembly, as well as the recent introduction of the thoroughly modern, fuel-injected 4.0 L and 2.5 L engines. In addition, Jeep vehicles were riding an unprecedented surge in demand. It seemed to Besse and others that American Motors was on course for profitability.
However, on November 17, 1986, Besse, who had a high profile among French capitalists, was assassinated by a member of a French clandestine far-left extremist group, Action directe. AMC's plans to reinvigorate sales with higher-priced Renaults continued for a little longer, with the plan being a three-pronged lineup beginning with the mid-sized Medallion
A medal or medallion is a small portable artistic object, a thin disc, normally of metal, carrying a design, usually on both sides. They typically have a commemorative purpose of some kind, and many are presented as awards. They may be int ...
, the larger Premier
Premier is a title for the head of government in central governments, state governments and local governments of some countries. A second in command to a premier is designated as a deputy premier.
A premier will normally be a head of governm ...
above it, and the sporty Renault Alpine
The Société des Automobiles Alpine SAS, commonly known as Alpine (), is a French manufacturer of racing and sports cars established in 1955. The Alpine car marque was created in 1954.
Jean Rédélé, the founder of Alpine, was originally a ...
providing a halo car. The Medallion and the Premier both did go on sale, but the Alpine never made its planned mid-1987 rollout.
Chrysler purchases American Motors Stock
Under pressure from Renault executives following Besse's death, Renault's new president, Raymond Levy, set out to repair employee relations and divest
In finance and economics, divestment or divestiture is the reduction of some kind of asset for financial, ethical, or political objectives or sale of an existing business by a firm. A divestment is the opposite of an investment. Divestiture is a ...
the company of its investment in American Motors. Renault owned 46.1% of American Motors' outstanding shares of stock. In 1986 American Motors had lost $91.3 million.
The earlier agreement between Chrysler and American Motors in 1985, under which American Motors would produce M-body chassis rear-drive large cars for five years from mid-1986 through 1990, fed the rumor that Chrysler was about to buy AMC. According to the head of manufacturing for Chrysler at the time, Stephan Sharf, the existing relationship with American Motors producing a car for a competitor facilitated the negotiations.[
]
On March 9, 1987, Chrysler agreed to buy Renault's share in American Motors, plus all the remaining shares, for about $1.5 billion ($ in dollars).
Chrysler made no secret that they were only interested in AMC for Jeep, AMC's new assembly plant in Canada, and AMC's network of 1,300 dealerships nationwide. Chrysler President, Lee A. Iacocca
Lido Anthony "Lee" Iacocca ( ; October 15, 1924 – July 2, 2019) was an American automobile executive best known for the development of the Ford Mustang, Continental Mark III, and Ford Pinto cars while at the Ford Motor Company in the 1960s, a ...
was quoted in the March 10, 1987 LA Times
The ''Los Angeles Times'' (abbreviated as ''LA Times'') is a daily newspaper that started publishing in Los Angeles in 1881. Based in the LA-adjacent suburb of El Segundo since 2018, it is the sixth-largest newspaper by circulation in the Un ...
as saying:
With the sale complete, American Motors became the Jeep-Eagle
Jeep-Eagle was the name of the automobile sales division created by the Chrysler, Chrysler Corporation after the United States dollar, US$2 billion takeover of American Motors, American Motors Corporation (AMC) in 1987. The division marketed a va ...
division of Chrysler.
The sale came at a time when the automotive press was enthusiastic about the proposed 1988 lineup of Renault, Eagle, and Jeep vehicles, as well as reports that the financial outlook for the small automaker was improving. American Motors' quarterly results for all of 1987 were positive, Chrysler purchased American Motors at a time the company appeared to be in a very good financial position with its new product line.[
It was the Jeep brand that Chrysler CEO ]Lee Iacocca
Lido Anthony "Lee" Iacocca ( ; October 15, 1924 – July 2, 2019) was an American automobile executive best known for the development of the Ford Mustang, Continental Mark III, and Ford Pinto cars while at the Ford Motor Company in the 1960s, an ...
really wanted – in particular the ZJ Grand Cherokee
The Jeep Grand Cherokee is a range of mid-size SUVs produced by the American manufacturer Jeep. At its introduction, while most SUVs were still manufactured with body-on-frame construction, the Grand Cherokee has used a unibody chassis from the ...
, then under development by Jeep engineers, which ultimately proved highly profitable for Chrysler (the nameplate remains in production today). However, the buyout included other attractive deal sweeteners for Chrysler. Among them was the world-class, brand-new manufacturing plant in Bramalea, Ontario
Bramalea (''Bram-a-lee'') is a large suburban district in the City of Brampton, Ontario, Canada. Bramalea was created as an innovative " new town", and developed as a separate community from the city. Located in the former Chinguacousy Tow ...
, which offered Iacocca an unprecedented opportunity to increase his company's production capacity Productive capacity is the maximum possible output of an economy. According to the United Nations Conference on Trade and Development (UNCTAD), no agreed-upon definition of maximum output exists. UNCTAD itself proposes: "the productive ''resources' ...
at a fire-sale price. American Motors had designed and built the plant in anticipation of building the Renault 25
The Renault 25 is an executive car produced by the France, French automotive industry, automaker Renault from 1983 to 1992.
The 25 was Renault's Flagship#Automotive, flagship, the most expensive, prestigious, and the largest vehicle in the co ...
-based Eagle Premier
The Eagle Premier is a full-size executive car that was developed by American Motors Corporation (AMC) during the 1980s through its partnership with Renault. This model was manufactured in the then-brand-new Brampton Assembly in Canada. Chrysle ...
. Additional profitable acquisitions were the American Motors dealer network (the addition of which strengthened Chrysler's retail distribution – many American Motors dealers switched to selling Chrysler products); and American Motors' underrated organization and management talent – which Chrysler quickly assimilated (numerous leading Chrysler engineers and executives were ex-American Motors). American Motors was renamed Jeep Eagle Corporation (a Chrysler subsidiary) August 25, 1988, and was fully merged as of March 29, 1990.[
]
Leadership
1954: George W. Mason
The 1954 merger of Nash-Kelvinator Corporation
Nash-Kelvinator Corporation was the result of a merger in 1937 between Nash Motors and Kelvinator Appliance Company. The union of these two companies was brought about as a result of a condition made by George W. Mason prior to his appointment as ...
and Hudson Motor Car Company
The Hudson Motor Car Company made Hudson and other branded automobiles in Detroit, Michigan, U.S., from 1909 until 1954. In 1954, Hudson merged with Nash-Kelvinator to form American Motors Corporation (AMC). The Hudson name was continued through ...
, and the establishment of American Motors was led by Nash-Kelvinator president George W. Mason
George Walter Mason (March 12, 1891 – October 8, 1954) was an American industrialist. During his career Mason served as the Chairman and CEO of the Kelvinator Corporation (1928-1937), Chairman and CEO of the Nash-Kelvinator Corporation (1937-19 ...
to reap benefits from the strengths of the two firms to battle the much larger " Big Three" automakers (General Motors, Ford, and Chrysler). The merger was originally intended to be a three-way merger, with Packard being the number three. Mason had first discussed the possibility of a merger with Packard president James J. Nance
James John Nance (19 February 1900 – 21 July 1984) was an American industrialist who became president of the Studebaker-Packard Corporation. Later, he was chief executive of the Central National Bank of Cleveland, chairman of the executive co ...
in the late 1940s. Nance insisted that if Packard were to join, then he would have to be the CEO of the new company. Mason fully intended to lead the new company, thus the deal did not go through. Packard acquired Studebaker two months after Nash acquired Hudson.
Mason became CEO and president of the new company and Hudson's president A.E. Barit
Abraham Edward Barit (August 30, 1890 – July 14, 1974) was an American industrialist who served as the president and CEO of the Hudson Motor Car Company from 1936 to 1954 when Hudson merged with Nash Motors to form American Motors Corporation. ...
retired to become an American Motors board member. Mason selected long-time Nash associate and future governor of Michigan, George W. Romney
George Wilcken Romney (July 8, 1907 – July 26, 1995) was an American businessman and politician. A member of the Republican Party, he served as chairman and president of American Motors Corporation from 1954 to 1962, the 43rd gover ...
, as vice president. Roy Abernethy, ex-vice president of sales for Willys
Willys (pronounced , "Willis" )
was a brand name used by Willys–Overland Motors, an American automobile company, founded by John North Willys. It was best known for its design and production of World War II era and later military jeeps (MBs ...
, was hired to be vice president of sales.
1954–1962: George W. Romney
Following Mason's sudden death on October 8, 1954, Romney took over, reorganizing the company and focusing American Motors's future on a new small car line. Mason's death also allowed Romney to put an end to any further discussions for a merger between American Motors and Studebaker-Packard.
By the end of 1957, the legacy Nash and Hudson brands were completely phased out, replaced with the Rambler
Rambler or Ramble may refer to:
Places
* Rambler, Wyoming
* Rambler Channel (藍巴勒海峽), separates Tsing Yi Island and the mainland New Territories in Hong Kong
* The Ramble and Lake, Central Park, an area within New York City's Centr ...
and Metropolitan brands. The company struggled at first, but under Romney, Rambler sales took off. A Rambler won the 1959 Mobil Economy Run
Mobil Economy Run was an annual event that took place from 1936 to 1968, except during World War II. It was designed to provide real fuel efficiency numbers during a coast-to-coast test on public roads and with regular traffic and weather conditi ...
, and by 1960, was the third-most-popular brand of automobile in the United States, behind Ford and Chevrolet.
1962–1967: Roy Abernethy
George Romney left American Motors in 1962 to run for governor in Michigan and was replaced as CEO by Roy Abernethy. After two model years (1963 and 1964) of only producing compact cars, Abernethy shifted the focus of American Motors back to larger and more profitable cars such as the Ambassador line from the perceived negative of the Rambler's economy car
Economy car is a term mostly used in the United States for cars designed for low-cost purchase and operation. Typical economy cars are small (compact or subcompact), lightweight, and inexpensive to both produce and purchase. Stringent design const ...
image. Ambassador sales jumped from 18,647 in 1964 to over 64,000 in 1965. In 1966, they went to more than 71,000. However, the huge costs of developing the new cars and engines meant American Motors now had problems in securing working capital
Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is consi ...
to keep the company going. American Motors sales dropped 20% in the first half of 1966, and the firm reported a fiscal six-month loss of $4.2 million on sales of $479 million. Consequently, Robert B. Evans invested more than $2 million because American Motors's stock was selling for only 60% of the company's net worth
Net worth is the value of all the non-financial and financial assets owned by an individual or institution minus the value of all its outstanding liabilities. Since financial assets minus outstanding liabilities equal net financial assets, net ...
; thus, he became its largest stockholder and was named its chairman on June 6, 1966, replacing Richard E. Cross, who continued as a director and chairman of the executive committee. In the quarter ending September 30, 1966, American Motors recorded a loss of $12,648,000 before tax credits and deferred tax assets. In the face of deteriorating financial and market positions, Abernethy "retired" as CEO in 1967, and Evans "resigned" as chairman.
1967–1977: Roy D. Chapin Jr.
Abernethy was replaced by the son of Hudson co-founder Roy D. Chapin, Roy D. Chapin Jr.
Roy Dikeman Chapin Jr. (September 21, 1915 – August 5, 2001) was the chairman and chief executive officer of American Motors Corporation (AMC). Chapin's father, Roy D. Chapin Sr., was one of the co-founders of the Hudson Motor Car Company; Hud ...
and Evans was replaced by William V. Luneberg. American Motors's public explanation for the removals was that the two had "stepped aside according to a plan to give a younger team an opportunity to move the company forward".
Chapin took charge to revitalize the company, and designer Dick Teague economized by developing several vehicles from common stampings. While prices and costs were cut, new and more sporty automobiles were introduced, and from 1968, American Motors became known for the Javelin
A javelin is a light spear designed primarily to be thrown, historically as a ranged weapon, but today predominantly for sport. The javelin is almost always thrown by hand, unlike the sling, bow, and crossbow, which launch projectiles with th ...
and AMX muscle car
Muscle car is a description according to ''Merriam-Webster Dictionary'' that came to use in 1966 for "a group of American-made two-door sports coupes with powerful engines designed for high-performance driving." The '' Britannica Dictionary'' ...
s.
American Motors purchased Kaiser
''Kaiser'' is the German word for "emperor" (female Kaiserin). In general, the German title in principle applies to rulers anywhere in the world above the rank of king (''König''). In English, the (untranslated) word ''Kaiser'' is mainly ap ...
's Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
utility-vehicle operations in 1970 to complement its existing passenger-car business. Beginning in the early 1970s, the company moved towards all-new compact car designs based on the Hornet
Hornets (insects in the genus ''Vespa'') are the largest of the eusocial wasps, and are similar in appearance to their close relatives yellowjackets. Some species can reach up to in length. They are distinguished from other vespine wasps by th ...
, including the Hornet itself and the Gremlin
A gremlin is a mischievous folkloric creature invented at the beginning of the 20th century to originally explain malfunctions in aircraft and later in other machinery and processes and their operators. Depictions of these creatures vary widel ...
. Other new models in the 1970s included the Matador
A bullfighter (or matador) is a performer in the activity of bullfighting. ''Torero'' () or ''toureiro'' (), both from Latin ''taurarius'', are the Spanish and Portuguese words for bullfighter and describe all the performers in the activit ...
and Pacer.
1977–1982: Gerald C. Meyers
A major management transition at American Motors started on May 24, 1977, then Meyers was named president and chief operating officer, succeeding the retiring William Luneburg. Upon the retirement of Chapin on October 21, 1977, Gerald C. Meyers
Gerald Carl Meyers (born December 5, 1928), former chairman and CEO of American Motors Corporation (AMC) is an industrialist, author, lecturer, and management consultant.
Early life
Born December 5, 1928, in Buffalo, New York, Meyers attended p ...
, former president and COO, became chairman and CEO. At the time, Meyers was 49 years old, and became the youngest top executive in the automobile industry. "The company was looking for a lot more than a steady hand on the tiller — it was looking for a savior", but Meyers disagreed and argued that the company could survive and remain a factor in the automobile industry by abandoning its policy of head-on competition and instead focusing on and revamping its four-wheel drive vehicles, a market segment left untended by the large automakers, and by acquiring advanced technology.
Sagging sales and tight finances resulted in the elimination of the Matador line in the 1979 model year and the Pacer line in 1980, leaving American Motors to focus almost exclusively on its Hornet platform
Platform may refer to:
Technology
* Computing platform, a framework on which applications may be run
* Platform game, a genre of video games
* Car platform, a set of components shared by several vehicle models
* Weapons platform, a system or ...
-based cars and the Jeep line. Hornet derivatives of the late 1970s included the Spirit
Spirit or spirits may refer to:
Liquor and other volatile liquids
* Spirits, a.k.a. liquor, distilled alcoholic drinks
* Spirit or tincture, an extract of plant or animal material dissolved in ethanol
* Volatile (especially flammable) liquids, ...
and Concord
Concord may refer to:
Meaning "agreement"
* Pact or treaty, frequently between nations (indicating a condition of harmony)
* Harmony, in music
* Agreement (linguistics), a change in the form of a word depending on grammatical features of other ...
, while the innovative four-wheel drive AMC Eagle
AMC may refer to:
Film and television
* AMC Theatres, an American movie theater chain
* AMC Networks, an American entertainment company
** AMC (TV channel)
** AMC+, streaming service
** AMC Networks International, an entertainment company
*** ...
introduced in 1979 was one of the first true crossovers
Crossover may refer to:
Entertainment
Albums and songs
* ''Cross Over'' (Dan Peek album)
* ''Crossover'' (Dirty Rotten Imbeciles album), 1987
* ''Crossover'' (Intrigue album)
* ''Crossover'' (Hitomi Shimatani album)
* ''Crossover'' (Yoshino ...
.
From 1980, American Motors partnered with France's Renault
Groupe Renault ( , , , also known as the Renault Group in English; legally Renault S.A.) is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured ...
to help finance their manufacturing operations, obtain much-needed capital, and source subcompact vehicles.
1982–1984: W. Paul Tippett Jr.
At age 53, Meyers retired from the company in February 1982, by which time Renault controlled 46% of American Motors. He was with the automaker 20 years, and was noted for orchestrating the linkup between American Motors and Renault starting in 1979. Meyers was succeeded as chairman by former American Motors President W. Paul Tippett Jr. At the time, Tippett was a member of American Motors management for only three years. Jose J. Dedeurwaerder, a Renault manager, became the new president of American Motors.
After the 1983 model year, American Motors focused entirely on four-wheel drive autos; the company stopped producing two-wheel drive cars. American Motors facilities were used to produce the Renault-branded Alliance and Encore compact and subcompact cars. In September 1984, Paul Tippet left American Motors as CEO and was replaced by Jose J. Dedeurwaerder.
1984–1986: Jose J. Dedeurwaerder
In 1985, Chrysler entered an agreement with American Motors to produce Dodge Diplomats and Plymouth Furys, as well as Dodge Omnis and Plymouth Horizons in American Motors' Kenosha, Wisconsin
Kenosha () is a city in the U.S. state of Wisconsin and the seat of Kenosha County. Per the 2020 census, the population was 99,986 which made it the fourth-largest city in Wisconsin. Situated on the southwestern shore of Lake Michigan, Kenos ...
, plant. At the time, American Motors had excess manufacturing capacity.
1986–1987: Joe Cappy
In 1987, after further new-vehicle development that included the Medallion
A medal or medallion is a small portable artistic object, a thin disc, normally of metal, carrying a design, usually on both sides. They typically have a commemorative purpose of some kind, and many are presented as awards. They may be int ...
(a rebadged Renault 21
The Renault 21 is a large family car produced by French automaker Renault between 1986 and 1994. It was also sold in North America initially through American Motors dealers as the Renault Medallion and later through Jeep-Eagle dealers as the Ea ...
) and Giorgetto Giugiaro
Giorgetto Giugiaro (; born 7 August 1938) is an Italian automotive designer. He has worked on supercars and popular everyday vehicles. He was born in Garessio, Cuneo, Piedmont.
Giugiaro was named Car Designer of the Century in 1999 and inducted ...
's Italian-designed new full-sized front-wheel drive
Front-wheel drive (FWD) is a form of engine and transmission layout used in motor vehicles, where the engine drives the front wheels only. Most modern front-wheel drive vehicles feature a transverse engine, rather than the conventional longit ...
sedan that became the Eagle Premier
The Eagle Premier is a full-size executive car that was developed by American Motors Corporation (AMC) during the 1980s through its partnership with Renault. This model was manufactured in the then-brand-new Brampton Assembly in Canada. Chrysle ...
, Renault sold its 47% ownership stake in American Motors to Chrysler, which made a public offer to purchase all the remaining outstanding shares of American Motors stock. American Motors was acquired by Chrysler in August 1987. The primary task of Chrysler management was to integrate the two companies as quickly as possible. American Motors' final CEO, Joe Cappy, was tasked with achieving this by Chrysler president Gerald Greenwald.
Renault left the U.S. market completely as a brand in 1987, thus the Renault Medallion was sold through the newly formed Jeep-Eagle
Jeep-Eagle was the name of the automobile sales division created by the Chrysler, Chrysler Corporation after the United States dollar, US$2 billion takeover of American Motors, American Motors Corporation (AMC) in 1987. The division marketed a va ...
division of Chrysler as an Eagle, not a Renault. The Jeep-Eagle division was formed from the American Motors Jeep Renault dealer network. The Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
and Eagle
Eagle is the common name for many large birds of prey of the family Accipitridae. Eagles belong to several groups of genera, some of which are closely related. Most of the 68 species of eagle are from Eurasia and Africa. Outside this area, just ...
vehicles were marketed primarily by former American Motors dealers. American Motors' badge was last used on the Eagle Sports Wagon through the 1988 model year, then eliminated entirely. The Eagle car brand was phased out by 1998.
Business legacy
American Motors was forced to constantly innovate for 33 years until Chrysler absorbed it in 1987. The lessons learned from this experience were integrated into the company that bought American Motors. The organization, strategies, as well as several key executives, allowed Chrysler to gain an edge on the competition. Even today, the lessons gained from the American Motors experience continue to provide benefits to other firms in the industry. There are a number of legacies from American Motors's business strategies.
American Motors had an ability to formulate strategies that were often evaluated by industry critics as "strokes of brilliance". According to Roy D. Chapin Jr.
Roy Dikeman Chapin Jr. (September 21, 1915 – August 5, 2001) was the chairman and chief executive officer of American Motors Corporation (AMC). Chapin's father, Roy D. Chapin Sr., was one of the co-founders of the Hudson Motor Car Company; Hud ...
, American Motors realized they were up against the giants of the industry, so to compete successfully they had to be able to move quickly and with ingenuity.[ An essential strategy practiced by American Motors was to rely on outside vendors to supply components in which they had differential advantages. This approach was finally accepted within the U.S. ]auto industry
The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % such ...
, but only after each of the Big Three experienced the failure of attempting to be self-sufficient.
The smallest domestic automaker did not have "the massive R&D budgets of General Motors, Ford, and foreign competitors … hus
Hus or HUS may refer to:
Medicine
* Hemolytic-uremic syndrome, a disease characterized by haemolytic anemia, kidney problems and a low platelet count
People
* Hus (surname)
* Hus family, an 18th-century French dynasty of ballet dancers and ac ...
American Motors placed R&D emphasis on bolstering the product life cycle of its prime products (particularly Jeeps)." In 1985, American Motors originated product lifecycle management
In industry, Product Lifecycle Management (PLM) is the process of managing the entire lifecycle of a product from its inception through the engineering, design and manufacture, as well as the service and disposal of manufactured products. PL ...
(PLM) as a strategic business approach according to Sidney Hill Jr., executive editor for ''Manufacturing Business Technology'', in an effort to better compete against its much larger rivals by ramping up its product development process.
Another example of American Motors' agility was the ability of management to squeeze money out of reluctant bankers, even in the face of bankruptcy. These core abilities helped save the company from collapse and after each obstacle, give it the wherewithal to keep it operating. Ironically, American Motors was never stronger than just before its demise.[
American Motors' managers anticipated important trends in the automotive industry. It preached fuel efficiency in the 1950s, long before most auto buyers demanded it. Led by American Motors's Rambler and several European cars, the small car innovation reduced the Big Three's market share from 93% in 1957 to 82% in 1959. The company inherited foreign manufacturing and sales partnerships from Nash and continued developing business relations, decades before most of the international consolidations among automobile makers took place. American Motors was the first U.S. automaker to establish an ownership agreement with a foreign automaker, Renault.
Although small in size, American Motors was able to introduce numerous industry innovations. Starting in 1957, American Motors was the only U.S. manufacturer to totally immerse all automobile bodies in primer paint for protection against rust, until competitors adopted the practice in 1964. Even one of American Motors's most expensive new product investments (the Pacer) established many features that were later adopted by the auto industry worldwide. These included aerodynamic body design, space-efficient interiors, aircraft-style doors, and a large greenhouse for visibility. American Motors was also effective in other areas such as marketing by introducing low-rate financing. American Motors' four-wheel-drive vehicles established the foundation for the modern SUV market segments, and "classic" Jeep models continue to be the benchmark in this field. Roy D. Chapin drew on his experiences as a hunter and fisherman and marketed the Jeep brand successfully to people with like interests. The brand developed a cult appeal that continues.]
The purchase of American Motors was instrumental in reviving Chrysler. According to Robert Lutz, former President of Chrysler, the American Motors acquisition was a big and risky undertaking. The purchase was part of Chrysler's strategic "retreat-cum-diversification" plan that he states did not have the right focus. Initially, the goal was to obtain the world-renowned Jeep brand. However, Lutz discovered that the decision to buy American Motors turned out to be a gold mine for Chrysler. At that time, Chrysler's management was attempting to find a model to improve structure and operations, ''"something that would help get our minds unstuck and thinking beyond the old paradigms that we were so familiar with''". In this transformation, ''"Chrysler's acquisition of AMC was one of the all-time great moments in corporate serendipity''" according to Lutz ''" that most definitely played a key role in demonstrating how to accomplish change''".
According to Lutz (1993), while American Motors had its share of problems, it was far from being a bunch of "brain-dead losers". He describes the "troops" at American Motors as more like the Wake Island Marines in battle, "with almost no resources, and fighting a vastly superior enemy, they were able to roll out an impressive succession of new products". After first reacting with anger to the purchase, Chrysler managers soon anticipated the benefits. To further solidify the organizational competencies held by American Motors, Lee Iacocca agreed to retain former American Motors units, such as engineering, completely intact. In addition, American Motors' lead engineer, François Castaing
François J. Castaing (born 18 March 1945 in Marseille) is an automotive executive with Renault, American Motors, and Chrysler. He is an engineering graduate from École Nationale Supérieure d'Arts et Métiers in Paris, and worked in Europe ...
, was made head of all engineering at Chrysler. In an unthinkable strategic move, Castaing completely dismantled the entrenched Chrysler groups. In their place, American Motors's " platform team" was implemented. These were close-knit cross-functional groups responsible for the whole vehicle, as contrasted with Chrysler's highly functional structure. In this capacity, Castaing's strategy was to eliminate the corporate administrative overhead bureaucracy. This move shifted corporate culture and agitated veteran executives who believed that Chrysler's reputation as "the engineering company" was being destroyed. Yet, according to the popular press, by the 1980s Chrysler's reputation was totally shot, and in Lutz's view, only dramatic action was going to change that. In summary, Chrysler's purchase of American Motors laid the critical foundation to help re-establish a strategy for its revival in the 1990s.
Top managers at Chrysler after the AMC buyout appeared to have made errors similar to those by American Motors. For example, Chrysler invested heavily in new untested models while not keeping up its profitable high-volume lines.
The American Motors influence also continued at General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
. GM recruited a new executive team to turn itself from near bankruptcy in the early 2000s. Among the new strategists at GM was Lutz who brought an understanding of the importance of passion in product design. Lutz implemented a new thinking at GM that incorporated the systems and structures that originated from American Motors's lean and focused operations.
Renault implemented the lessons it learned from its investment in American Motors. The French firm took a parallel approach as it did with its initial ownership of American Motors and applied it to resurrect the money-losing Nissan
, trade name, trading as Nissan Motor Corporation and often shortened to Nissan, is a Japanese multinational corporation, multinational Automotive industry, automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan. The company sells ...
automaker in Japan.
In 2009, in a deal brokered by the Obama administration
Barack Obama's tenure as the 44th president of the United States began with his first inauguration on January 20, 2009, and ended on January 20, 2017. A Democrat from Illinois, Obama took office following a decisive victory over Republican ...
, Italian
Italian(s) may refer to:
* Anything of, from, or related to the people of Italy over the centuries
** Italians, an ethnic group or simply a citizen of the Italian Republic or Italian Kingdom
** Italian language, a Romance language
*** Regional Ita ...
automaker Fiat
Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiary ...
initiated a white knight takeover of Chrysler to save the struggling automaker from liquidation. The deal was immediately compared to the American Motors-Renault deal; some commentators noted the irony in that Chrysler now faced the same fate that American Motors faced 30 years earlier, while others expressed skepticism of whether the Italian firm could save Chrysler, given how the Renault deal failed. However, there were key differences between the two:
*Fiat CEO Sergio Marchionne
Sergio Marchionne (; 17 June 1952 – 25 July 2018) was an Italian-Canadian businessman, widely known for his turnarounds of the automakers Fiat and Chrysler, his business acumen and his outspoken and often frank approach, especially when dealing ...
became CEO of Chrysler as part of the deal and immediately began globally integrating Fiat and Chrysler's assets and product lines;
*the Fiat-Chrysler merger did not face the political opposition the American Motors-Renault deal did since Fiat is led by a family group with significant equity and the US government supported the merger;
*while American Motors proved to be a continuous money-loser for Renault, Chrysler returned to profitability fairly quickly and has since become an important source of revenue and profits for Fiat, which has been struggling to maintain volume and profitability amid the European debt crisis
The European debt crisis, often also referred to as the eurozone crisis or the European sovereign debt crisis, is a multi-year debt crisis that took place in the European Union (EU) from 2009 until the mid to late 2010s. Several eurozone membe ...
.
The two firms would later fully merge to create Fiat Chrysler Automobiles
Fiat Chrysler Automobiles N.V. (FCA) was an Italian-American multinational corporation primarily known as a manufacturer of automobiles, commercial vehicles, auto parts and production systems. The Italian holding company Exor was the largest ...
in 2014, and would further merge with the French firm PSA Group
The PSA Group (), legally known as Peugeot S.A. (Peugeot Société Anonyme, trading as Groupe PSA; formerly known as PSA Peugeot Citroën from 1991 to 2016) was a French multinational automotive manufacturing company which produced automobiles ...
, owners of the Citroën
Citroën () is a French automobile brand. The "Automobiles Citroën" manufacturing company was founded in March 1919 by André Citroën. Citroën is owned by Stellantis since 2021 and previously was part of the PSA Group after Peugeot acquired ...
and Peugeot
Peugeot (, , ) is a French brand of automobiles owned by Stellantis.
The family business that preceded the current Peugeot companies was founded in 1810, with a steel foundry that soon started making hand tools and kitchen equipment, and the ...
brands, to form Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
in 2021.
Legacy of products
Passenger automobiles
Chrysler revived the "Spirit" name that was discontinued by AMC after 1983 for use on one of its A platform cars, (the Dodge Spirit
The Dodge Spirit is a mid-size 5- or 6-passenger sedan that was introduced in January 1989 as a replacement for the similarly sized Dodge 600. The Spirit was Dodge's version of the Chrysler AA platform, a stretched variation of the Chrysler K ...
) from 1989 until 1995. The planned Renault Medallion
A medal or medallion is a small portable artistic object, a thin disc, normally of metal, carrying a design, usually on both sides. They typically have a commemorative purpose of some kind, and many are presented as awards. They may be int ...
was sold as the Eagle Medallion
The Eagle Medallion, also marketed as the Renault Medallion, is a rebadged and mildly re-engineered North American version of the French Renault 21 marketed by American Motors Corporation under the Renault brand for the 1988 model year, and by ...
in 1988 and 1989. The planned all-new 1988 Renault Premier, a joint development effort between American Motors and Renault, and for which the Brampton Assembly
Brampton Assembly Plant is a Stellantis Canada automobile factory located at 2000 Williams Parkway East Brampton, Ontario, Canada. Originally built by American Motors Corporation (AMC) for US$260 million, in the former Bramalea area of Br ...
plant (Brampton
Brampton ( or ) is a city in the Canadian Provinces and territories of Canada, province of Ontario. Brampton is a city in the Greater Toronto Area (GTA) and is a List of municipalities in Ontario#Lower-tier municipalities, lower-tier municipalit ...
, Ontario—originally called the Bramalea Plant) was built, was sold by Chrysler as the 1988–1992 Eagle Premier
The Eagle Premier is a full-size executive car that was developed by American Motors Corporation (AMC) during the 1980s through its partnership with Renault. This model was manufactured in the then-brand-new Brampton Assembly in Canada. Chrysle ...
, with a rebadged Dodge Monaco
The Dodge Monaco is an automobile that was marketed by the Dodge division of Chrysler Corporation. Introduced as the flagship of the Dodge product line, the Monaco was introduced for 1965 to replace the Custom 880, later then later joining as a su ...
variant available from 1990 through 1992. The full-sized Premier's platform was far more advanced than anything Chrysler was building at the time. After some re-engineering and a re-designation to Chrysler code LH, the Eagle Premier went on to form the backbone of Chrysler's passenger car lineup during the 1990s as the Chrysler Concorde
The Chrysler Concorde is a full-size, front wheel drive four-door sedan that was produced by Chrysler from 1992 to 2004. It assumed the C-body Chrysler New Yorker Salon's position as the entry-level full-size sedan in the Chrysler brand lin ...
(a revived model name that was briefly used by Plymouth
Plymouth () is a port city and unitary authority in South West England. It is located on the south coast of Devon, approximately south-west of Exeter and south-west of London. It is bordered by Cornwall to the west and south-west.
Plymouth ...
in 1951 and 1952), Chrysler New Yorker
The Chrysler New Yorker is an automobile model that was produced by Chrysler from 1940 until 1996, serving for several decades as the brand's flagship model, or as a junior sedan to the Chrysler Imperial luxury brand. A trim level named the "Ne ...
, Chrysler LHS
The Chrysler LHS is a full-size luxury four-door sedan that was produced by Chrysler for the 1994 through the 2001 model years, with a one-year hiatus for 1998. It replaced the Chrysler Imperial and the Chrysler Fifth Avenue as the division's fl ...
, Dodge Intrepid
The Dodge Intrepid is a full sized front-wheel drive four-door sedan that was produced by Dodge for model years 1993 to 2004. It is related to the Chrysler 300M, Chrysler Concorde, Chrysler LHS, Chrysler New Yorker, and Eagle Vision which we ...
, and Eagle Vision
The Eagle Vision is a full-sized, front-wheel drive four-door sports sedan produced from 1992 until 1997. It was marketed by Eagle, replacing the AMC/Renault-designed Eagle Premier (from which the Vision was derived). The Eagle Vision was bad ...
. Plymouth almost received their own rendition of the LH platform, which was to be called the Accolade, but Chrysler decided to nix this idea not long before LH production started. The Chrysler 300M
The Chrysler 300M is a full-size luxury sedan that was produced by Daimler/Chrysler from 1999 to 2004. It is a front-wheel drive, V6 engined car using the Chrysler LH platform. Versus its platform mates, the 300M was roughly shorter to make i ...
was likewise a Premier/LH-derived car and was initially to have been the next-generation Eagle Vision, until the Eagle
Eagle is the common name for many large birds of prey of the family Accipitridae. Eagles belong to several groups of genera, some of which are closely related. Most of the 68 species of eagle are from Eurasia and Africa. Outside this area, just ...
brand was dropped after 1998. The LH Platform was subsequently re-engineered, using Mercedes-Benz
Mercedes-Benz (), commonly referred to as Mercedes and sometimes as Benz, is a German luxury and commercial vehicle automotive brand established in 1926. Mercedes-Benz AG (a Mercedes-Benz Group subsidiary established in 2019) is headquartere ...
components, into the Chrysler LX Platform
The LX platform is Chrysler's full-size rear wheel drive automobile platform introduced in 2004 for the 2005 model year. The LX was developed in North America to supersede the previous Chrysler LH platform, which had been designed to allow it t ...
which remains in production today underpinning the Chrysler 300
The Chrysler 300 is a full-size luxury car manufactured and marketed by Stellantis North America (and its predecessor companies) as a four-door sedan and station wagon in its first generation (model years 2005–2010) and solely as a four-do ...
, Dodge Charger
The Dodge Charger is a model of automobile marketed by Dodge in various forms over seven generations since 1966.
The first Charger was a show car in 1964. A 1965 Charger II concept car resembled the 1966 production version.
The Charger has ...
and Dodge Challenger
The Dodge Challenger is the name of three different generations of automobiles (two of those being pony cars) produced by American automobile manufacturer Dodge. However, the first use of the Challenger name by Dodge was in 1959 for marketing a ...
.
Jeep vehicles
Chrysler marketed the SJ Jeep Grand Wagoneer until 1991, leaving it almost entirely unaltered from the final American Motors rendition before the buyout. The Jeep Comanche
The Jeep Comanche (designated MJ) is a pickup truck variant of the Cherokee compact SUV (1984–2001) manufactured and marketed by Jeep for model years 1986-1992 in rear wheel (RWD) and four-wheel drive (4WD) models as well as two cargo bed leng ...
pickup truck remained until 1992, while the Cherokee remained until 2001 in the U.S. (the XJ Cherokee was produced in China through 2006 as the Cherokee 2500 .5Land Cherokee 4000 .0L. Although it was not introduced until 1993, the Jeep Grand Cherokee
The Jeep Grand Cherokee is a range of mid-size SUVs produced by the American manufacturer Jeep. At its introduction, while most SUVs were still manufactured with body-on-frame construction, the Grand Cherokee has used a unibody chassis from the ...
was initially an American Motors-developed vehicle.
Traces of American Motors remained within. American Motors' Toledo, Ohio, plants continued to manufacture the Jeep Wrangler and Liberty
Liberty is the ability to do as one pleases, or a right or immunity enjoyed by prescription or by grant (i.e. privilege). It is a synonym for the word freedom.
In modern politics, liberty is understood as the state of being free within society fr ...
, as well as parts and components for Chrysler, Dodge, and Jeep vehicles (although Toledo Machining and Forge were closed in 2005). American Motors' main plant in Wisconsin, albeit heavily downsized, operated as the Kenosha Engine
Kenosha Engine was an automobile and engine factory in Kenosha, Wisconsin. First opened for automobile production in 1902 by the Thomas B. Jeffery Company and later operated by American Motors, the Kenosha Engine Plant saw all operations halted by ...
Plant, producing engines for several Chrysler Group products including the Wrangler. The plant was closed as part of the post-bailout restructuring of Chrysler in October 2010. The engine was used until the 2006 model year by DaimlerChrysler
The Mercedes-Benz Group AG (previously named Daimler-Benz, DaimlerChrysler and Daimler) is a German multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg, Germany. It is one of the world's leading car manufacture ...
in the Jeep Wrangler
The Jeep Wrangler is a series of compact and mid-size four-wheel drive off-road SUVs manufactured by Jeep since 1986 and is currently in its fourth generation. The Wrangler JL, the most recent generation, was revealed in late 2017 and is produ ...
. American Motors' technologically advanced Bramalea Assembly and Stamping Plants in Brampton
Brampton ( or ) is a city in the Canadian Provinces and territories of Canada, province of Ontario. Brampton is a city in the Greater Toronto Area (GTA) and is a List of municipalities in Ontario#Lower-tier municipalities, lower-tier municipalit ...
, Ontario, later produced the LX-cars – the Dodge Charger
The Dodge Charger is a model of automobile marketed by Dodge in various forms over seven generations since 1966.
The first Charger was a show car in 1964. A 1965 Charger II concept car resembled the 1966 production version.
The Charger has ...
and the Chrysler 300
The Chrysler 300 is a full-size luxury car manufactured and marketed by Stellantis North America (and its predecessor companies) as a four-door sedan and station wagon in its first generation (model years 2005–2010) and solely as a four-do ...
, and the now discontinued Dodge Magnum
The Dodge Magnum is a nameplate used by several Dodge vehicles, at different times and on various markets. The name was first applied to a large Chrysler B platform-based 2-door coupe marketed from 1978 to 1979 sold in the United States and Cana ...
.
In terms of American Motors-related parts, some were used as late as 2006, when the Jeep Wrangler
The Jeep Wrangler is a series of compact and mid-size four-wheel drive off-road SUVs manufactured by Jeep since 1986 and is currently in its fourth generation. The Wrangler JL, the most recent generation, was revealed in late 2017 and is produ ...
(the last new product introduced by American Motors before the Chrysler deal) was still using the AMC Straight-6 engine in some models, as well as the recessed "paddle" door handles that were used since the 1968 model year by American Motors. Both were retired when the Wrangler was completely redesigned for the 2007 model year.
AM General
AM General is an American heavy vehicle and contract automotive manufacturer based in South Bend, Indiana. It is best known for the civilian Hummer H1, Hummer and the military Humvee that are assembled in Mishawaka, Indiana. For a relatively brie ...
, sold by American Motors in 1982, is still in business building the American Motors-designed Humvee
The High Mobility Multipurpose Wheeled Vehicle (HMMWV; colloquial: Humvee) is a family of light, four-wheel drive, military trucks and utility vehicles produced by AM General. It has largely supplanted the roles previously performed by the ori ...
for American and allied militaries. AM General also built the now-discontinued civilian variant – the H1 – and manufactured a Chevrolet Tahoe
The Chevrolet Tahoe, and its badge engineered GMC Yukon counterpart, are full-size SUVs from General Motors, offered since 1994 and 1991, respectively. Since 1982, Chevrolet and GMC sold two different-sized SUVs under their 'Blazer' and 'Jimmy ...
-derived companion, the H2, under contract to GM, who acquired the rights to the civilian Hummer brand in 1999. GM was forced to phase out the Hummer brand in early 2010 as a part of its bankruptcy restructuring after offering it for sale, but failing to find a suitable buyer.
Although Chrysler introduced new logos for its brands in the 1990s and again in 2010 after the Fiat
Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiary ...
Group took control of the company, Jeep still uses the American Motors-era logo introduced shortly after American Motors' purchase of the brand in 1970. Until the Chrysler purchase, Jeep's logo also featured the American Motors emblem.
International legacy
Beginning in 1960, American Motors' executive vice president of international operations Roy D. Chapin Jr.
Roy Dikeman Chapin Jr. (September 21, 1915 – August 5, 2001) was the chairman and chief executive officer of American Motors Corporation (AMC). Chapin's father, Roy D. Chapin Sr., was one of the co-founders of the Hudson Motor Car Company; Hud ...
embarked on a strong international campaign to set up importation and local assembly operations of American Motors vehicles around the world. In five years, Chapin increased foreign sales to 73,489 cars which at the same time grew AMC's share of the U.S. export market from 2.5 percent to 14.3 percent. Chapin successfully established or re-established vehicle assembly operations in Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...
, Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
, Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
(via Renault of France), Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
, Costa Rica
Costa Rica (, ; ; literally "Rich Coast"), officially the Republic of Costa Rica ( es, República de Costa Rica), is a country in the Central American region of North America, bordered by Nicaragua to the north, the Caribbean Sea to the no ...
, Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
, Iran
Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...
, Mexico
Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
, New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
, Peru
, image_flag = Flag of Peru.svg
, image_coat = Escudo nacional del Perú.svg
, other_symbol = Great Seal of the State
, other_symbol_type = Seal (emblem), National seal
, national_motto = "Fi ...
, Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
, South Africa
South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
, and Venezuela
Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
. He also strengthened international export operations with exports to the United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
, Denmark, Finland, Iceland, and Norway in Europe; and to countries in the Middle East, the Caribbean, and South America. The Rambler Classic would even become the basis of Argentina's future national car, the Torino
Turin ( , Piedmontese: ; it, Torino ) is a city and an important business and cultural centre in Northern Italy. It is the capital city of Piedmont and of the Metropolitan City of Turin, and was the first Italian capital from 1861 to 1865. T ...
. After becoming CEO in 1967 Chapin organized the acquisition of Jeep from Kaiser Motors
Kaiser Motors (formerly Kaiser-Frazer) Corporation made automobiles at Willow Run, Michigan, United States, from 1945 to 1953. In 1953, Kaiser merged with Willys-Overland to form Willys Motors Incorporated, moving its production operations ...
in 1970 with American Motors thereby inheriting all existing international Jeep operations. These helped sustain American Motors during the 1970s and 1980s.
While the Rambler marque had been dropped in the United States after the 1969 model year, all export markets retained the Rambler name, with the longest to retain it being Mexico until 1983.
*American Motors vehicles assembled: ''Ambassador, Classic'' (from 1964), ''Jeep.''
*American Motors vehicles imported: ''Ambassador, Classic'' (1962–1963)
*American Motors vehicles assembled: ''Rambler Six, Rambler V8, Ambassador'' (1961–1963), ''Classic, American, Rebel'' (sedan and wagon), ''Matador'' (sedan and wagon), ''Javelin'' (1968-1972), ''AMX'' (1969 model only), ''Hornet'' (sedan), ''Matador Coupe X'' (1974 model only, assembled in 1976), ''Jeep'' (1980–1984)
*American Motors vehicles imported: ''Classic'' (hardtop), ''Ambassador'' (1970 only)
*American Motors vehicles assembled: ''Rambler Six'' (1957 only), ''Classic, American, Ambassador'' (until 1968), ''Rebel, Hornet, Gremlin, Concord, Jeep, Eagle, Spirit''
*American Motors vehicles imported: ''Rambler Six, Rambler V8, Metropolitan'' (from U.K), ''Ambassador'' (after 1968), ''Matador, Javelin, AMX''
*American Motors vehicles assembled: ''Classic''
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Classic'' (from 1965), ''American'' (from 1965), ''Ambassador'' (from 1965), ''Rebel, Matador, Javelin, Hornet, Sportabout, Jeep''
*American Motors vehicles imported: ''Rambler Six, Rambler V8, Ambassador'' (until 1965), ''Classic'' (until 1965), ''American'' (until 1965)
*American Motors vehicles assembled: ''Jeep'' (from 1978)
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''N/A''
*American Motors vehicles imported: ''Classic, American, Ambassador, Rebel, Javelin, Hornet, Matador, Jeep''
*American Motors vehicles assembled: ''Classic, Rebel'' (1967 only)
*American Motors vehicles imported: ''Jeep'' (by Renault 1980-1986), ''Javelin, Pacer'' (by private importer-distributors)
*American Motors vehicles assembled: ''Javelin'' (by Karmann)
*American Motors vehicles imported: ''Ambassador'' (from 1969), ''Rebel'' (from 1969), ''AMX'' (from 1969), ''Jeep'' (from 1977), ''Eagle''
*American Motors vehicles assembled: ''Jeep''
*American Motors vehicles imported: ''N/A.''
*American Motors vehicles assembled: ''American, Jeep''
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Jeep''
*American Motors vehicles imported: ''Eagle'' (1985-1989), ''Jeep Cherokee (XJ)''
*American Motors vehicles assembled: ''Rambler Six, Rambler V8, Ambassador'' (1959 only), ''American, Classic, Rebel'' (sedan), ''Matador, Javelin, AMX, Hornet, Matador Coupe X, Gremlin, Pacer, Spirit, Jeep''
*American Motors vehicles imported: ''Rambler Six'' (1957–1958), ''Rambler V8'' (1957–1958)
*American Motors vehicles assembled: ''Rambler Six, Rambler V8, Classic, Rebel'' (sedan), ''Jeep''
*American Motors vehicles imported: ''Metropolitan, Rebel'' (wagon), ''Rebel'' (hardtop), ''Ambassador'' (1970 only)
*American Motors vehicles assembled: N/A
*American Motors vehicles imported: ''Ambassador, Classic, American, Rebel''
*American Motors vehicles assembled: ''Jeep'' (from 1984)
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Classic, American, Rebel''
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Classic, American, Javelin''
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''N/A''
*American Motors vehicles imported: ''Gremlin, Javelin, Pacer, Jeep''
*American Motors vehicles assembled: ''American, Hornet''
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Jeep'' (1974-1981)
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Jeep''
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Classic, Javelin, Hornet, Jeep''
*American Motors vehicles imported: ''N/A''
*American Motors vehicles assembled: ''Metropolitan'' (by Austin)
*American Motors vehicles imported: ''Rambler Six, Rambler V8, Classic, Rebel, Ambassador, Matador, Javelin, Pacer'' (locally converted to RHD), ''Gremlin'' (locally converted to RHD)
Legacy of divisions and facilities
Former divisions
During its history, American Motors bought or created, then later sold and divested itself of several specialized divisions, some of which continue to exist today:
''Kelvinator
Kelvinator was an American home appliance manufacturer and a line of domestic refrigerators that was the namesake of the company. Although as a company it is now defunct, the name still exists as a brand name owned by Electrolux AB. It takes its ...
'', the subdivision of Nash-Kelvinator, was sold by American Motors in 1968 to White Consolidated Industries
The White Sewing Machine Company was a sewing machine company founded in 1858 in Templeton, Massachusetts, by Thomas H. White and based in Cleveland, Ohio, since 1866.
History
Founded as the White Manufacturing Company it took the White S ...
and subsequently became part of Electrolux
Electrolux AB () is a Swedish multinational home appliance manufacturer, headquartered in Stockholm. It is consistently ranked the world's second largest appliance maker by units sold, after Whirlpool.
Electrolux products sell under a variety ...
. The Kelvinator Company is still in business.
''Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
'' is a brand under ''Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
''. It was a brand of the Fiat Chrysler Automobiles
Fiat Chrysler Automobiles N.V. (FCA) was an Italian-American multinational corporation primarily known as a manufacturer of automobiles, commercial vehicles, auto parts and production systems. The Italian holding company Exor was the largest ...
until January 16, 2021. Many Jeep models retained the mechanical specifications and styling cues that were developed by American Motors well into the 1990s or even into the first decade of the 2000s.
''AM General
AM General is an American heavy vehicle and contract automotive manufacturer based in South Bend, Indiana. It is best known for the civilian Hummer H1, Hummer and the military Humvee that are assembled in Mishawaka, Indiana. For a relatively brie ...
'' is now owned by MacAndrews & Forbes Holdings and the Renco Group
Renco Group is an American New York City-based holding company controlled by Ira Rennert that invests in other companies across a range of industries.
History
In August 2004, it was announced that Ronald Perelman's MacAndrews & Forbes Holding ...
. It was organized as an LLC in August 2004.
''Wheel Horse
Wheel Horse was a manufacturer of outdoor and garden power equipment, including lawn and garden tractors. The company's headquarters were in South Bend, Indiana, USA.
History
The business was started in the two-car garage of Elmer Pond in 19 ...
Products Division'' is now owned by the Toro Company.
''Beijing Jeep
Beijing Benz (officially Beijing Benz Automotive Co., Ltd) is an automotive manufacturing company headquartered in Beijing, China, and a joint venture between BAIC Motor and Mercedes-Benz Group.
It was originally established in January 1984 as ...
'' was established by American Motors in 1983 to produce Jeeps for the burgeoning Chinese market; the joint venture was inherited by Chrysler and continues under the ownership of the new Chrysler. American Motors' trials with the venture were the subject of a book on the venture, "Beijing Jeep", by James Mann.
Facilities
American Motors World Headquarters (1954–1975) was located at 14250 Plymouth Road in Detroit and was widely known as the ''Plymouth Road Office Center (PROC)''. In 1975, American Motors moved its headquarters from the facility on Plymouth Road to a newly constructed building on Northwestern Highway in Southfield, Michigan, known as the American Center
The American Center is a high-rise tower in the Metro Detroit suburb of Southfield, Michigan, built in 1975 as the corporate headquarters for the automaker American Motors Corporation (AMC), which was subsequently acquired by Chrysler Corporat ...
.
The initial building had been built during 1926–27 by the Electric Refrigeration Corporation (subsequently Nash-Kelvinator
Nash-Kelvinator Corporation was the result of a merger in 1937 between Nash Motors and Kelvinator Appliance Company. The union of these two companies was brought about as a result of a condition made by George W. Mason prior to his appointment as ...
) with design by Amedeo Leoni, industrial layout by Wallace McKenzie, and tower enclosure and industrial units by William E. Kapp, of SHG. The original three-story factory and four-story administration building had been headquarters to Nash-Kelvinator from 1937 until 1954 as well as a factory for refrigerators, electric ranges, and commercial refrigeration—as well as airplane propellers for the U.S. military effort during World War II.
During World War II, the U.S. War Department War Department may refer to:
* War Department (United Kingdom)
* United States Department of War (1789–1947)
See also
* War Office, a former department of the British Government
* Ministry of defence
* Ministry of War
* Ministry of Defence
* D ...
contracted with Nash-Kelvinator to produce 900 Sikorsky R-6
The Sikorsky R-6 is an American light two-seat helicopter of the 1940s. In Royal Air Force and Royal Navy service, it was named the Hoverfly II.
Development
The R-6/Hoverfly II was developed to improve on the successful Sikorsky R-4. In order to ...
model helicopters
A helicopter is a type of rotorcraft in which lift and thrust are supplied by horizontally spinning rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forward, backward and laterally. These attributes ...
. As part of that contract, a site north of the factory was used as the smallest airport in the world as a flight testing
Flight testing is a branch of aeronautical engineering that develops specialist equipment required for testing aircraft behaviour and systems. Instrumentation systems are developed using proprietary transducers and data acquisition systems. D ...
base. Nash-Kelvinator produced about 50 R-6s a month during the war. When the contract was terminated at the end of the war, a total of 262 helicopters had been constructed.
During Chrysler's occupancy of the complex, it was known as Jeep and (Dodge) Truck Engineering (JTE), including facilities for Body on Frame (BoF) work as well as testing facilities and labs. The buildings included , approximately one-third devoted to engineering and computer functions.
As of 2007, Chrysler still employed over 1,600 people at the complex, moving those operations in mid-2009 to the Chrysler Technology Center. PROC was made available for sale by Chrysler in early 2010. It was bought be a local man who gutted the building for scrap and left it in a dilapidated state before losing it to foreclosure. The abandoned building was in possession of the city of Detroit and officials were considering if the industrial site would be more marketable if the building was torn down. In 2018, the Wayne County Commission
The Wayne County Commission is the legislative body for Wayne County, Michigan. It is made up of 15 commissioners elected by district every two years. Wayne County, which includes the City of Detroit, is the most populous county in Michigan with 1 ...
approved a land swap that included a new jail complex for the county as well as a potential revival for the old American Motors building.
* American Center
The American Center is a high-rise tower in the Metro Detroit suburb of Southfield, Michigan, built in 1975 as the corporate headquarters for the automaker American Motors Corporation (AMC), which was subsequently acquired by Chrysler Corporat ...
– American Motors' corporate headquarters in Southfield, Michigan
Southfield is a city in Oakland County, Michigan, Oakland County in the U.S. state of Michigan. As of the 2010 United States Census, 2010 census, the city had a population of 76,618.
As a northern suburb of Detroit, Southfield shares part of its ...
, is still standing, still open, and still called "American Center". The original "American Center" signage at the top of the building remained until 2005, although the American Motors logo has been removed. The signage has since been changed to Charter One. The 25-story building is rented to several different organizations and companies as office space. After the Chrysler acquisition, Chrysler Financial occupied as much as of the building.
* Toledo South Assembly Plants – Torn down by Chrysler in 2007. Until it was demolished, still visible on most of the signage on the outside of the factories were areas where Chrysler painted over the American Motors logo.
* Toledo Forge – Torn down by Chrysler in 2007.
* Brampton (formerly Bramalea) Assembly and Satellite Stamping Plants. – still in use by Chrysler. American Motors designed this US$260 million (US$ in dollars), plant, which was operational by 1986. This plant was designed and built by American Motors for the specific purpose of building the Eagle Premier
The Eagle Premier is a full-size executive car that was developed by American Motors Corporation (AMC) during the 1980s through its partnership with Renault. This model was manufactured in the then-brand-new Brampton Assembly in Canada. Chrysle ...
. Like the older Brampton plant (see "Former Factory Facilities", below), this factory was also part of American Motors Canada, Inc., and with the Chrysler buyout in 1987, became part of Chrysler Canada Limited. The plant currently builds the LX series of vehicles including the Chrysler 300, the Dodge Charger. Also Producing a slightly modified version of the lX series; renamed the LC series; supporting the Dodge Challenger nameplate.
* Kenosha "Main" Plant – Portions of the Kenosha Main Plant (later Chrysler's Kenosha Engine
Kenosha Engine was an automobile and engine factory in Kenosha, Wisconsin. First opened for automobile production in 1902 by the Thomas B. Jeffery Company and later operated by American Motors, the Kenosha Engine Plant saw all operations halted by ...
plant with some new additions) at 52nd Street and 30th Avenue continued to be run by Chrysler as an engine-production factory. This plant closed in October 2010 as part of Chrysler LLC's Chapter 11 bankruptcy
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...
procedure which resulted from the automotive industry crisis. Demolition of the plant began in early December 2012.
* Canadian Fabricated Products Ltd. – An American Motors division (part of AMC Canada, Ltd.) in Stratford, Ontario; established 1971 and sold post-buyout by DaimlerChrysler in 1994; produced automotive interior trim.
* Guelph Products – An American Motors division (also part of AMC Canada, Ltd.) in Guelph
Guelph ( ; 2021 Canadian Census population 143,740) is a city in Southwestern Ontario, Canada. Known as "The Royal City", Guelph is roughly east of Kitchener and west of Downtown Toronto, at the intersection of Highway 6, Highway 7 and Wel ...
, Ontario; opened in 1987, and subsequently sold by Chrysler in early 1993; the operation supplied molded plastic components to the Brampton Assembly Plant.[
* Coleman Products Corporation – An American Motors subsidiary in ]Coleman, Wisconsin
Coleman is a village in Marinette County, Wisconsin, United States. The population was 724 at the 2010 census. It is part of the Marinette, WI– MI Micropolitan Statistical Area.
Geography
Coleman is located at (45.069654, -88.034303).
...
. Manufactured automotive wiring harnesses for American Motors and other automakers. (Not the same as Coleman Company
The Coleman Company, Inc. is an American brand of outdoor recreation products, especially camping gear, now owned by Newell Brands. The company's new headquarters are in Chicago, and it has facilities in Wichita, Kansas, and in Texas. There are ...
)
* Evart Products Co. – An American Motors subsidiary in Evart, Michigan
Evart ( ) is a city in Osceola County in the U.S. state of Michigan. The population was 1,903 at the 2010 census. The city lies on the northern edge of Evart Township and is partially within neighboring Osceola Township, although the city is ad ...
. The plant was established in 1953 with 25 workers and eventually expanded to over 1,200, becoming Osceola County's largest employer. This factory manufactured injection molded
Injection moulding (U.S. spelling: injection molding) is a manufacturing process for producing parts by injecting molten material into a mould, or mold. Injection moulding can be performed with a host of materials mainly including metals (for ...
plastic parts (notably, grilles) for American Motors (supplying 90% of in-house needs), as well as for other automakers. In 1966, Products Wire Harness was built. After Chrysler's purchase of American Motors, Collins & Aikman
Collins & Aikman Corporation was an automotive manufacturer of cockpit modules and automotive floor and acoustic systems and a supplier of instrument panels, automotive fabric, plastic based trim and convertible top systems. The Company's operat ...
took over the factory.[
* Mercury Plastics Co. – Mercury Plastics operated a plant at 34501 Harper Ave., ]Mt. Clemens, Michigan
Mount Clemens is a city in the U.S. state of Michigan. The population was 16,314 at the 2010 United States Census, 2010 census. It is the county seat, seat of government of Macomb County, Michigan, Macomb County.
History
Mount Clemens was first s ...
. The company was acquired in 1973 for 611,111 shares of American Motors stock. The company produced plastic parts for American Motors, as well as for uses in other industries.
* Windsor Plastics Co. – Windsor Plastics, 601 North Congress Avenue, Evansville, Indiana
Evansville is a city in, and the county seat of, Vanderburgh County, Indiana, United States. The population was 118,414 at the 2020 census, making it the state's third-most populous city after Indianapolis and Fort Wayne, the largest city in ...
, was acquired in 1970. The division produced plastic parts for American Motors and other industries. The company was sold to Guardian Industries
Guardian Industries is a privately held industrial manufacturer of glass, automotive and building products based in Auburn Hills, Michigan.
The company manufactures float glass, fabricated glass products, fiberglass insulation and building materia ...
in 1982, and underwent a name change to Guardian Automotive Trim, Inc. It is still in operation today. The original factory in Evansville continues to manufacture plastic parts for the OEM and aftermarket automotive industries. Items manufactured include grilles, bezels, and other parts.
* The American Motors Proving Grounds – The former American Motors Proving Grounds in Burlington, Wisconsin
Burlington is a city in Racine and Walworth counties in the U.S. state of Wisconsin, with the majority of the city located in Racine County. The population of the city was 11,047 as of the 2020 census.
History
Prior to the arrival of Europea ...
, had initially been Nash's test track and subsequently became Jeep's test facilities (after American Motors' acquisition of Willys in the 1970s). The grounds fell into disuse after Chrysler's takeover of American Motors in 1987 and subsequently became the engineering and test facility for MGA Research. The company rents out this proving grounds to the National Highway Traffic Safety Administration
The National Highway Traffic Safety Administration (NHTSA ) is an agency of the U.S. federal government, part of the Department of Transportation. It describes its mission as "Save lives, prevent injuries, reduce vehicle-related crashes" rela ...
(NHTSA), for "ride-and-drive" events by automakers, as well as for movies and commercials.
* Axle tooling equipment – sold in 1985 to Dana Holding Corporation
Dana Incorporated is an American supplier of axles, driveshafts, transmissions, and electrodynamic, thermal, sealing, and digital equipment for conventional, Hybrid vehicle, hybrid, and Electric vehicle, electric-powered vehicles. The company's ...
, and they named the AMC-15 axles as Dana 35. Dana manufactured the AMC-20 axles for AM General
AM General is an American heavy vehicle and contract automotive manufacturer based in South Bend, Indiana. It is best known for the civilian Hummer H1, Hummer and the military Humvee that are assembled in Mishawaka, Indiana. For a relatively brie ...
's Hummer H1
The Hummer H1 is a four-wheel-drive utility vehicle based on the M998 Humvee, which was developed by AM General when it was a subsidiary of American Motors Corporation (AMC). Originally designed strictly for military use, the off-road vehicle was ...
. The company also continues to produce the AMC-15 axle as well; however they have been upgraded from American Motors' original design with multiple variations (including front axle designs).
* Holmes Foundry, Ltd. – American Motors' block-casting foundry was a major American Motors factory which is now obliterated. Holmes had its main office and foundry
A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the metal into a mold, and removing the mold material after the metal has solidified as it cools. The most common metals pr ...
at 200 Exmouth Street, Sarnia, Ontario, Canada. Holmes was established in 1918, by Mr. J. S. Blunt, and was called Holmes Blunt Limited. In the early years, Ford Motor Company
Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobi ...
contracted the plant for a steady supply of engine casting blocks. This factory had a reputation locally as a dirty, dangerous place to work. The company had three divisions, all operating on one site at the edge of Sarnia. Beginning in 1962, American Motors contracted with Holmes Foundry to supply American Motors with cylinder block
In an internal combustion engine, the engine block is the structure which contains the cylinders and other components. In an early automotive engine, the engine block consisted of just the cylinder block, to which a separate crankcase was attac ...
castings. American Motors acquired 25% interest in the foundry in January 1966. In July 1970, American Motors acquired 100% of Holmes Foundry through an exchange of shares, making it a wholly-owned subsidiary. However, it was not until October 1981 that Holmes Foundry finally became a Division of American Motors, Canada. As part of its acquisition of American Motors in 1987, Chrysler Corporation took ownership of the Holmes facility and its manufacturing business but closed the operation on September 16, 1988. The industrial facilities were cleaned of their environmental contaminants in 2005, in preparation for a new highway interchange
In the field of road transport, an interchange (American English) or a grade-separated junction (British English) is a road junction that uses grade separations to allow for the movement of traffic between two or more roadways or highways, usi ...
to be built on the site.
* Kenosha "Lakefront" (Kenosha, Wisconsin) Plant – The American Motors plant in downtown Kenosha along Lake Michigan was razed, and after reclamation the land was used for new development. At the company's inception in 1954, the plant covered and together with the Milwaukee plant had an annual production capacity of 350,000 cars.
* Milwaukee Body (Milwaukee, Wisconsin) Plant – American Motors inherited a [ body plant in Milwaukee from Nash. The plant was the main body plant for Seaman Body Company, which did a lot of business with Nash and other makers assembling bodies of various designs. For American Motors, the plant was sometimes an internal headache. For instance, in late 1961, George Romney himself stormed through the plant and threatened to close it and eliminate its 9,000 jobs due to labor problems. The plant survived until the Chrysler buyout. Chrysler later decided to dispose of the factory. Upon closure, the site was named a Superfund site. The factory was demolished and the site was rehabilitated and redeveloped.
* Danforth Ave (Toronto, Ontario) Plant – Inherited from Nash. This plant was purchased by Nash from Ford of Canada in 1946. The first Canadian-built Nash rolled off the line in April 1950. Upon the formation of American Motors in 1954, the plant assembled 1955 Nash and Hudson Ramblers (2- and 4-door sedans); as well as Nash Canadian Statesman and ]Hudson Wasp
The Hudson Wasp is an automobile that was built and marketed by the Hudson Motor Car Company of Detroit, Michigan, from the 1952 through the 1956 model years. After Hudson merged with Nash Motors, the Wasp was then built by American Motors Corpor ...
(4 door sedans). In 1956, the plant continued to assemble the Nash and Hudson Rambler (4-door sedans and wagons) as well as the Nash Canadian Statesman (4-door sedan); but The Hudson Wasp was imported. That same year, American Motors Sales (Canada) Limited was formed – taking over Nash Motors of Canada Limited and Hudson Motors of Canada Limited. In 1957, American Motors assembled the Rambler Six
The Rambler Six and the Rambler V8 are intermediate sized automobiles that were built and marketed by American Motors Corporation (AMC) from 1956 to 1960.
Launched on 15 December 1955, the 1956 model year Rambler Six ushered a "new era in moto ...
and Rambler Rebel
The Rambler Rebel is an automobile that was produced by the American Motors Corporation (AMC) of Kenosha, Wisconsin for the 1957–1960 model years, as well as again for 1966 and 1967.
Introduced as a stand-alone model in one body style, the 19 ...
V8 at the Danforth plant; but in July 1957, American Motors closed the plant and imported Ramblers into Canada until 1961. The structure remains today as the Shoppers World Danforth
Shoppers World Danforth is a hybrid shopping plaza and shopping mall in Toronto, Ontario, Canada. It has 40 stores serving parts of East York, Scarborough and The Beaches, near the Victoria Park subway station. Today a moderately sized suburban ...
Lowe's
Lowe's Companies, Inc. (), often shortened to Lowe's, is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada. A ...
store.
* Tilbury, Ontario
Tilbury (2016 population 4,768) is a community within the municipality of Chatham-Kent, Ontario, Canada. It is located southwest of Chatham-Kent and east of Windsor on Highway 401.
History
The nearby townships of Tilbury West and Tilbury East ...
Assembly Plant – Another plant American Motors inherited from the 1954 merger; this one via Hudson. Specifically, it was a contract with CHATCO Steel Products which actually owned the plant. American Motors ceased Hudson production at the Tilbury plant in 1955.
* Brampton Assembly Plant – American Motors opened a plant in 1960 in Brampton, Ontario, Canada. It was part of American Motors Canada, Inc. Rambler Drive, a small street just west of this plant, still exists and leads into a residential subdivision that was built in the 1960s. In 1987, with the Chrysler buyout, the division and the plant were absorbed as well, becoming part of Chrysler Canada Limited. The plant was closed in 1994 and sold to Wal-Mart for use as their Canadian warehouse. This plant/warehouse was demolished in 2004 and redeveloped in 2007 with multiple smaller commercial buildings now onsite; a new Lowes Home Improvement Warehouse now takes up the largest section of this commercial development. Note that this is a separate facility from the current Brampton (formerly Bramalea) Assembly and Satellite Stamping Plants nearby.
* South Charleston Stamping Plant – A South Charleston, West Virginia
South Charleston is a city in Kanawha County, West Virginia, United States. It is located to the west of Charleston. The population was 13,639 at the 2020 census. South Charleston was established in 1906, but not incorporated until 1917. The ...
, facility. While American Motors leased it, the plant stamped steel automotive parts. In 1978 Volkswagen of America
Volkswagen Group of America, Inc. (sometimes referred to as Volkswagen of America, abbreviated to VWoA), is the North American operational headquarters, and subsidiary of the Volkswagen Group of automobile companies of Germany. VWoA is responsi ...
purchased the plant. to supply stampings for its Westmoreland Assembly Plant, subsequently selling the plant when it closed Westmoreland in 1988 to Park Corporation of Cleveland
Cleveland ( ), officially the City of Cleveland, is a city in the U.S. state of Ohio and the county seat of Cuyahoga County. Located in the northeastern part of the state, it is situated along the southern shore of Lake Erie, across the U.S. ...
, OH. In October 2006 its recent tenant, Union Stamping and Assembly, declared bankruptcy.
Former subsidiaries and affiliates
* American Motors Sales Corp.
* American Motors Realty Corp.
* American Motors Leasing Corp.
* Evart Production Co.
* Coleman Products Co.
* American Motors Pan American Corp.
* Jeep Corp.
* Am General Corp.
* McDonald Molding, Inc.
* Mercury Plastics Co.
* Rantoul Products, Inc.
* American Motors (Canada) Inc.
* Rambler Motors (A.M.C) Limited (United Kingdom)
* American Motors Corporation de Venezuela, CA
* American Motors Financial Corp.
* Arab American Vehicles Co.
* Beijing Jeep Corp.
* Jeep Australia Pty., Ltd.
* Jeep de Venezuela, SA
* Mahindra & Mahindra
Mahindra & Mahindra Limited (M&M) is an Indian multinational automotive manufacturing corporation headquartered in Mumbai. It was established in 1945 as Mahindra & Mohammed and later renamed as Mahindra & Mahindra. Part of the Mahindra Group, ...
Ltd.
* Vehiculos Automotores Mexicanos, SA.
* Shinjin Jeep Motors (South Korea)
Earlier use of the name
The era of 1900 until 1925 saw various corporations, in several U.S. state
In the United States, a state is a constituent political entity, of which there are 50. Bound together in a political union, each state holds governmental jurisdiction over a separate and defined geographic territory where it shares its sover ...
s, use similar "American" names, such as American Motor Carriage Company (Ohio, 1902–1903), American Automobile Manufacturing Company (Indiana, 1911–1912), and American Motors Incorporated (New York, 1919–1920). In 1916, an earlier "American Motors Corporation", apparently unrelated to the more famous later corporation of the same name, was formed in Newark, New Jersey
Newark ( , ) is the most populous city in the U.S. state of New Jersey and the seat of Essex County and the second largest city within the New York metropolitan area.[Louis Chevrolet
Louis-Joseph Chevrolet (; December 25, 1878 – June 6, 1941) was a Swiss-American race car driver, mechanic and entrepreneur who co-founded the Chevrolet Motor Car Company in 1911.
Early life
Louis-Joseph Chevrolet was born on December 25, 1 ...]
as vice president and chief engineer. By 1918 it was producing cars in a plant at Plainfield, New Jersey
Plainfield is a city in Union County, in the U.S. state of New Jersey, known by its nickname as "The Queen City." . In 1923 it merged with the Bessemer Motor Truck Company of Pennsylvania into Bessemer–American Motors Corporation, which lasted less than a year before merging with the Winther and Northway companies into Amalgamated Motors. The latter company apparently ceased soon after.
Later reuse of the trademark
A new company was formed in Palmdale, California
Palmdale is a city in northern Los Angeles County in the U.S. state of California. The city lies in the Antelope Valley region of Southern California. The San Gabriel Mountains separate Palmdale from the Los Angeles Basin to the south.
On Aug ...
, in 2001. Registration for the American Motors trademarks was filed in 2001 by this California-based firm. The company's website specifically claimed no affiliation to the previous American Motors but used American Motors' history and logos on its website. The website is now dead, and the company's claims to American Motors' trademarks expired in 2005.[
The new Chrysler LLC holds a live registration for the name "American Motors", which was applied for in 2005. The "AMC" wordmark, complete with "A-mark" graphic logo, as was originally used in 1970 and through the late-1980s – was registered and published for comment by Chrysler as of 2010.
]
American Motors passenger cars
;Subcompact:
*1955–1962: Metropolitan*
*1970–1978: AMC Gremlin
The AMC Gremlin (also American Motors Gremlin) is a subcompact automobile introduced in 1970, manufactured and marketed in a single, two-door body style (1970–1978) by American Motors Corporation (AMC), as well as in Mexico (1974–1983) by A ...
**
*1979–1983: AMC Spirit
*1981–1983: AMC Eagle
AMC may refer to:
Film and television
* AMC Theatres, an American movie theater chain
* AMC Networks, an American entertainment company
** AMC (TV channel)
** AMC+, streaming service
** AMC Networks International, an entertainment company
*** ...
(SX/4 and Kammback)
*1983–1987: Renault Alliance
The Renault Alliance is a front-wheel drive, front-engine subcompact automobile manufactured and marketed in North America by American Motors Corporation (AMC) for model years 1983–1987. The Alliance and its subsequent hatchback variant, the ...
based on the Renault 9
The Renault 9 and Renault 11 are small family cars produced by the French manufacturer Renault for model years 1981–1988 in saloon (Renault 9) and hatchback (Renault 11) configurations — both were styled by the French automobile designer, Rob ...
.
*1984–1987: Renault Encore
Groupe Renault ( , , , also known as the Renault Group in English; legally Renault S.A.) is a French multinational automobile manufacturer established in 1899. The company produces a range of cars and vans, and in the past has manufactured ...
– based on the Renault 11
Eleven or 11 may refer to:
*11 (number), the natural number following 10 and preceding 12
* one of the years 11 BC, AD 11, 1911, 2011, or any year ending in 11
Literature
* ''Eleven'' (novel), a 2006 novel by British author David Llewellyn
*''E ...
.
*1987 only: Renault GTA – based on the Renault 9
The Renault 9 and Renault 11 are small family cars produced by the French manufacturer Renault for model years 1981–1988 in saloon (Renault 9) and hatchback (Renault 11) configurations — both were styled by the French automobile designer, Rob ...
.
* – The Metropolitan was introduced by Nash in 1954.
** – The Gremlin was the company's first modern subcompact.
;Compact:
*1955–1956: Nash Rambler
The Nash Rambler is a North American automobile that was produced by the Nash Motors division of Nash-Kelvinator Corporation from 1950 to 1954 in sedan, wagon, and fixed-profile convertible body styles.
On 1 May 1954, Nash-Kelvinator merged ...
/Hudson Rambler
*1957: Rambler Six
The Rambler Six and the Rambler V8 are intermediate sized automobiles that were built and marketed by American Motors Corporation (AMC) from 1956 to 1960.
Launched on 15 December 1955, the 1956 model year Rambler Six ushered a "new era in moto ...
/Rambler Rebel
The Rambler Rebel is an automobile that was produced by the American Motors Corporation (AMC) of Kenosha, Wisconsin for the 1957–1960 model years, as well as again for 1966 and 1967.
Introduced as a stand-alone model in one body style, the 19 ...
*1958–1969: Rambler American
The Rambler American is a compact car that was manufactured by the American Motors Corporation (AMC) between 1958 and 1969. The American was the second incarnation of AMC forerunner Nash Motors' compact Rambler that was introduced in 1950 a ...
/AMC Rambler
*1968–1970: AMC AMX
*1968–1974: AMC Javelin
The AMC Javelin is an American front-engine, rear-wheel-drive, two-door hardtop automobile manufactured by American Motors Corporation (AMC) across two generations, 1968 through 1970 and 1971 through 1974 model years. The car was positioned an ...
*1970–1977: AMC Hornet
The AMC Hornet is a compact automobile, manufactured and marketed by American Motors Corporation (AMC) and made from 1970 through 1977 — in two- and four-door sedan, station wagon, and hatchback coupe configurations. The Hornet replaced the ...
*1975–1980: AMC Pacer
The AMC Pacer is a two-door compact car produced in the United States by American Motors Corporation (AMC) from the 1975 through the 1980 model years. The Pacer was also made in Mexico by Vehículos Automotores Mexicanos (VAM) from 1976 until ...
*1978–1983: AMC Concord
The AMC Concord is a compact car manufactured and marketed by the American Motors Corporation for model years 1978–1983. The Concord was essentially a revision of the AMC Hornet that was discontinued after 1977, but more luxurious, quieter, ...
;Crossover:
*1980–1988: AMC Eagle
AMC may refer to:
Film and television
* AMC Theatres, an American movie theater chain
* AMC Networks, an American entertainment company
** AMC (TV channel)
** AMC+, streaming service
** AMC Networks International, an entertainment company
*** ...
;Mid-size:
*1958–1960: Rambler Six
The Rambler Six and the Rambler V8 are intermediate sized automobiles that were built and marketed by American Motors Corporation (AMC) from 1956 to 1960.
Launched on 15 December 1955, the 1956 model year Rambler Six ushered a "new era in moto ...
/Rambler Rebel
The Rambler Rebel is an automobile that was produced by the American Motors Corporation (AMC) of Kenosha, Wisconsin for the 1957–1960 model years, as well as again for 1966 and 1967.
Introduced as a stand-alone model in one body style, the 19 ...
*1961–1966: Rambler Classic
*1958–1964: Rambler Ambassador
An ambassador is an official envoy, especially a high-ranking diplomat who represents a state and is usually accredited to another sovereign state or to an international organization as the resident representative of their own government or sov ...
(1958–1962 also known as "Ambassador by Rambler
The Ambassador is an automobile manufactured and marketed by American Motors Corporation (AMC) from 1957 through 1974 over eight generations, available in two- and four-door sedan, two-door hardtop, four-door station wagon as well as two-door ...
")
*1965–1966: Rambler/AMC Marlin
*1967–1970: Rambler/AMC Rebel
*1971–1973: AMC Matador
;Full-size:
*1955–1956: Hudson Wasp
The Hudson Wasp is an automobile that was built and marketed by the Hudson Motor Car Company of Detroit, Michigan, from the 1952 through the 1956 model years. After Hudson merged with Nash Motors, the Wasp was then built by American Motors Corpor ...
*1955–1956: Nash Statesman
The Nash Statesman is a full-sized automobile that was built by Nash Motors for the 1950 through 1956 model years in two generations. The Statesman series was positioned between the top-line Nash Ambassador and above the Nash Rambler.
First ...
*1955–1957: Hudson Hornet
The Hudson Hornet is a full-sized automobile that was manufactured by Hudson Motor Car Company of Detroit, Michigan from 1951 until 1954, when Nash-Kelvinator and Hudson merged to form American Motors Corporation (AMC). Hudson automobiles ...
*1955–1957: Nash Ambassador
The Nash Ambassador is a luxury automobile that was produced by Nash Motors from 1927 until 1957. For the first five years it was a top trim level, then from 1932 on a standalone model. Ambassadors were lavishly equipped and beautifully construc ...
*1965–1974: Rambler/AMC Ambassador
*1967: AMC Marlin
The Rambler Marlin (later AMC Marlin) is a two-door fastback automobile produced in the United States by American Motors Corporation from 1965 to 1967. A halo car for the company, it was marketed as a personal luxury car.
In 1965, the car w ...
*1974–1978: AMC Matador (sedan and wagon)
*1988–1992: Eagle Premier
The Eagle Premier is a full-size executive car that was developed by American Motors Corporation (AMC) during the 1980s through its partnership with Renault. This model was manufactured in the then-brand-new Brampton Assembly in Canada. Chrysle ...
American Motors engines
*1954–1956:
** '' Nash'' I6 (Rambler)
** '' Nash'' L head I6 (Rambler/'' AMC I6'')
** '' Nash'' I6
** ''Packard
Packard or Packard Motor Car Company was an American luxury automobile company located in Detroit, Michigan. The first Packard automobiles were produced in 1899, and the last Packards were built in South Bend, Indiana in 1958.
One of the "Thr ...
'' built V8
** ''Packard
Packard or Packard Motor Car Company was an American luxury automobile company located in Detroit, Michigan. The first Packard automobiles were produced in 1899, and the last Packards were built in South Bend, Indiana in 1958.
One of the "Thr ...
'' built V8 (used only 1956)
*1956–1966:
** ''Rambler
Rambler or Ramble may refer to:
Places
* Rambler, Wyoming
* Rambler Channel (藍巴勒海峽), separates Tsing Yi Island and the mainland New Territories in Hong Kong
* The Ramble and Lake, Central Park, an area within New York City's Centr ...
'' I6/'' AMC I6'' (L head and OHV version-ended 1965)
** '' Typhoon Six'' I6 (Starting in 1966)
** '' Typhoon Six'' I6 (Beginning in 1964)
** '' AMC V8'' (Ending in 1961)
** '' AMC V8'' (Beginning in 1963)
** '' AMC V8'' (also used by Kaiser Jeep 1965–1967)
*1967–1970:
** '' Typhoon Six'' I6
** '' Typhoon Six'' I6
** '' AMC V8'' (Ending in 1969)
** '' AMC V8'' (Beginning in 1970)
** '' AMC V8'' (Ending in 1969)
** '' AMC V8'' (Beginning in 1970)
** '' AMC V8''
*1971–1980:
** ''AMC
AMC may refer to:
Film and television
* AMC Theatres, an American movie theater chain
* AMC Networks, an American entertainment company
** AMC (TV channel)
** AMC+, streaming service
** AMC Networks International, an entertainment company
*** ...
'' I4 1
** '' AMC I6''
** '' AMC I6''
** '' AMC V8''
** '' AMC V8'' (Ending in 1978 for automobiles and through 1991 in Jeeps)
** '' AMC V8'' (Ending in 1974 as a regular production order in automobiles; was available in fleet/police use until at least 1975, in 1975 89 units were installed in Matadors; 4 coupes and 85 sedans-wagons. Available in full-size Jeeps through 1979, also used by International Harvester in 1974 in 1200 series pickups & Travelall during a strike at International Harvester, though IH called the engine a 400 CID)
*1980–1983:
** Pontiac Pontiac may refer to:
*Pontiac (automobile), a car brand
*Pontiac (Ottawa leader) ( – 1769), a Native American war chief
Places and jurisdictions Canada
*Pontiac, Quebec, a municipality
** Apostolic Vicariate of Pontiac, now the Roman Catholic D ...
'' Iron Duke'' I4
** '' AMC I6''
*1984–1986:
** '' AMC I4''
** '' AMC I6''
*1987:
** '' AMC I4''
** '' AMC I6''
** '' AMC I6''
*1988–1989:
** '' AMC I4''
** '' AMC I6''
** '' PRV V6''
Also: Kaiser Jeeps used the AMC 327, Buick 225 ("Dauntless V6"), Buick 350 ("Dauntless V8"), Willys 134 I4 ("Hurricane"). The Downsized Jeep XJ Cherokee/Wagoneer used the Chevrolet 2.8 Litre V6 in 1983–1984.
1 American Motors contracted with Volkswagen to buy tooling for the Audi 2.0 L OHC I4. Major parts (block, crankshaft, head assembly) were initially purchased from Audi and shipped to the U.S. where final assembly was accomplished by American Motors at a plant purchased specifically for the production of this engine. Sales never reached numbers to justify taking over total production. American Motors made several changes to the engine. They were prevented from using the Volkswagen or Audi names in association with the American Motors assembled version by contractual agreement.
Collectibility
American Motors models historically regarded by hobbyists as particularly "collectible" include the Javelin, AMX, and performance specials such as the 1957 Rambler Rebel, 1965–67 Marlin, 1969 Hurst SC/Rambler, 1970 Rebel Machine, and 1971 Hornet SC/360. These models enjoyed limited popularity when new, resulting in low production figures. In January 2007, the AMC AMX was "really taking off in the muscle car market" according to the editors of ''Hemmings Classic Car'', and it had "left its mark among AMC collectors' minds as a great alternative" to higher-priced Hemi
Hemi may refer to:
People Surname
* Jack Hemi (1914–1996), New Zealand freezing worker, rugby union and league player, shearer
* Ronald Hemi (1933–2000), New Zealand rugby union player
Given name
* Hemi Bawa, Indian painter and sculptor
* H ...
-powered muscle cars.
The early Javelin (1968–70) stands out from the Ford, General Motors, and Chrysler pony cars. Car expert Jack Nerad noted in a 2007 article "several fully restored AMX models" listed for sale at "little more than half the price of a comparable Buick Gran Sport
The Gran Sport name has been used on several high-performance cars built by General Motors for its Buick brand since 1965. In the GM brands hierarchy, Buick was surpassed in luxury and comfort appointments only by Cadillac, which did not produce ...
, Chevrolet Chevelle
The Chevrolet Chevelle is a mid-sized automobile that was produced by Chevrolet in three generations for the 1964 through 1978 model years. Part of the General Motors (GM) A-body platform, the Chevelle was one of Chevrolet's most successful ...
, Olds 4-4-2 or Pontiac GTO
The Pontiac GTO is an automobile that was manufactured by American automaker Pontiac from 1963 to 1974 for the 1964 to 1974 model years, and by GM's subsidiary Holden in Australia for the 2004 to 2006 model years.
The first generation of the G ...
" in support of the author's opinion that the 1971–74 Javelin was "clearly an outstanding alternative muscle car for the enthusiast on a budget."
According to James C. Mays, automotive historian and author of ''The Savvy Guide to Buying Collector Cars at Auction'', the "Wow! Factor" is an important and measurable pleasure to an owner whether their car is driven or sits in a climate-controlled garage. His "Wow! Factor" includes examples of a bright red 1969 AMX that according to its owner "is just a fast Rambler", but draws more people at events than the more prestigious Ferrari
Ferrari S.p.A. (; ) is an Italian luxury sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari (1898–1988) in 1939 from the Alfa Romeo racing division as ''Auto Avio Costruzioni'', the company built its first car in ...
s and Lamborghini
Automobili Lamborghini S.p.A. () is an Italian brand and manufacturer of luxury sports cars and SUVs based in Sant'Agata Bolognese. The company is owned by the Volkswagen Group through its subsidiary Audi.
Ferruccio Lamborghini (1916–1993) ...
s, as well as a "million-dollar moment" when a Rambler owner was serenaded with the " Beep Beep" song by The Playmates
The Playmates were an American late 1950s human voice, vocal group led by the pianist Chic Hetti (born Carl Cicchetti, 26 February 1930), drummer Donny Conn (born Donald Claps, 29 March 1930 – September 2, 2015), and Morey Carr (31 July 1932 ...
while fueling at a travel plaza. Moreover, the author's collector car, a 1969 Ambassador station wagon, made friends as strangers came to greet and host him as if "long lost kin". Mays points out the ready availability of parts for American Motors engines and his experiences in having service done on Ramblers without being charged for the work in exchange for the experience of driving a "sassy Rambler" (a 1966 American convertible) and having pictures taken with it.
Other American Motors models, once somewhat ignored by the hobby, are now considered "future collectibles". Examples include the 1959 Ambassador 4-door hardtop station wagon, of which only 578 were produced, and the Jeep Scrambler CJ8, a combined pickup truck-Jeep, of which only a few thousand were produced.
''Hemmings Classic Car'' magazine included the 1969–70 Rebel SST and the 1974–78 Matador coupe in their 2008 list of "dollar-for-pound eight cars that could be bought in show-quality condition for a comparatively modest outlay, The writer also noted that "most of AMC's '70s lineup" qualified for inclusion on the list.
The AMC Gremlin is described to have "a cult-like following in today's collectible car market. The Gremlin shares components with some other American Motors models its repair and restoration can be relatively inexpensive compared with other "historic cars".[
The AMC Pacer increased in value according to a Pacer owner who is the CEO of a major insurance provider for collector car owners.
There are active Rambler and American Motors car clubs in the U.S. and elsewhere (examples in ]External Links
An internal link is a type of hyperlink on a web page to another page or resource, such as an image or document, on the same website or domain.
Hyperlinks are considered either "external" or "internal" depending on their target or destination ...
).
''Hot Rod'' magazine revival April Fool's joke
In April 2008, ''Hot Rod'' magazine released an article claiming that American Motors was in the process of being revived. The vehicles in the works were to be the AMX, Matador
A bullfighter (or matador) is a performer in the activity of bullfighting. ''Torero'' () or ''toureiro'' (), both from Latin ''taurarius'', are the Spanish and Portuguese words for bullfighter and describe all the performers in the activit ...
, Ambassador
An ambassador is an official envoy, especially a high-ranking diplomat who represents a state and is usually accredited to another sovereign state or to an international organization as the resident representative of their own government or sov ...
, Pacer, and Gremlin
A gremlin is a mischievous folkloric creature invented at the beginning of the 20th century to originally explain malfunctions in aircraft and later in other machinery and processes and their operators. Depictions of these creatures vary widel ...
. Illustrated with drawings of the concept car
A concept car (also known as a concept vehicle, show vehicle or prototype) is a car made to showcase new styling and/or new technology. They are often exhibited at motor shows to gauge customer reaction to new and radical designs which may or ...
s entering production and accompanied by plentiful information, it was a popular article, although it was later revealed to be an April Fools'
April Fools' Day or All Fools' Day is an annual custom on 1 April consisting of practical jokes and hoaxes. Jokesters often expose their actions by shouting "April Fools!" at the recipient. Mass media can be involved in these pranks, which may b ...
joke.
See also
* Amitron and Electron – Experimental battery-powered city car
The A-segment is the 1st category in the passenger car classification system defined by the European Commission. It is used for city cars, the smallest category of passenger cars defined.
A-segment sales represent approx. 7-8% of the market in ...
s designed by American Motors.
*AMC/Jeep Transmissions Vehicles made by American Motors Corporation (AMC) and Jeep incorporated a variety of transmissions and transfer case systems. This article covers transmissions used in the following vehicle models and years:
* All American Motors (AMC) passenger c ...
* AMC 20
*Amco
The Amco was an American automobile manufactured primarily for the export market, designed by D.M. Eller and built by American Motors, Inc. of New York City from 1917 to 1922.
Between 1919 and 1920 the company produced cars that had left- or ...
, American Motors, Inc. of New York City, active from 1917 until 1922.
References
Bibliography
*
*
Further reading
*
*
*
*
*
*
*
*
*
*
*
*
*
*
External links
The American Motors Owners Association
The AMC Rambler Club
IMCDB: AMC vehicles in movies & TV shows
*
{{Authority control
Car brands
Luxury motor vehicle manufacturers
Car manufacturers of the United States
Defunct motor vehicle manufacturers of the United States
Chrysler
Motor vehicle manufacturers based in Michigan
Companies based in Southfield, Michigan
1954 establishments in Michigan
1988 disestablishments in Michigan
Vehicle manufacturing companies established in 1954
Vehicle manufacturing companies disestablished in 1988
Defunct manufacturing companies based in Michigan