| American Motors Corporation | |
|---|---|
| Fate | Acquired by Chrysler (1987) |
| Successor | Jeep/Eagle division of Chrysler |
| Founded | January 14, 1954 |
| Defunct | March 2, 1987 |
| Location | Southfield, Michigan, United States |
| Products | Automobiles Military vehicles Buses and delivery vehicles Sport utility vehicles Major home appliances Commercial refrigeration Lawn care products |
| Key people | George W. Mason George W. Romney Roy Abernethy Roy D. Chapin Jr. Richard A. Teague |
| Subsidiary | Kelvinator 1954 – sold in 1968 AM General 1971 – sold in 1985 Beijing Jeep 1983 – present (Note: continues under Chrysler) Wheel Horse 1970s – sold in 1986 |
American Motors Corporation (AMC) was an American automobile company formed on January 14, 1954 by the merger of the Nash-Kelvinator Corporation and the Hudson Motor Car Company. Chrysler LLC is an American Automobile manufacturer that has been producing Automobiles since 1925 Events 1129 - Formal approval of the Order of the Templar at the Council of Troyes. Year 1954 ( MCMLIV) was a Common year starting on Friday (link will display full 1954 Gregorian calendar) Events 986 - Louis V becomes King of the Franks. 1127 - Assassination of Charles the Good Year 1987 ( MCMLXXXVII) was a Common year starting on Thursday (link displays 1987 Gregorian calendar) Southfield is a city in Oakland County of the US state of Michigan. George Walter Mason ( March 12[[ 891]] - October 9[[ 954]] was an American industrialist George Wilcken Romney ( July 8 1907 July 26 1995) was an American Businessman and a Politician. Roy Abernethy ( September Richard A (Dick Teague ( December Kelvinator is an Appliance company owned by Electrolux of Sweden since 1986 AM General is an American heavy vehicle manufacturer based in South Bend Indiana, best known for the civilian Beijing-Benz DaimlerChrysler Automotive Co Ltd (BBDC in Chinese: 北京奔驰-戴姆勒·克莱斯勒汽车有限公司 is a 30-year Joint venture established by Wheel Horse was a manufacturer of lawn and garden tractors The business was started in the two-car garage of Elmer Pond in 1946 The United States of America —commonly referred to as the Events 1129 - Formal approval of the Order of the Templar at the Council of Troyes. Year 1954 ( MCMLIV) was a Common year starting on Friday (link will display full 1954 Gregorian calendar) Nash-Kelvinator Corporation was the result of a merger between Nash Motors and Kelvinator Appliance Company The Hudson Motor Car Company made Hudson and other brand Automobiles in Detroit Michigan, from 1909 to 1954 At the time, it was the largest corporate merger in U. S. history, valued at US$198 million ($1. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been 44 billion in 2006 dollars). Declining sales and a fiercely competitive auto market in the United States forced AMC to seek a partner in the late 1970s, which led to a tie-up with France's Renault in 1979. The United States of America —commonly referred to as the This is about the company for other uses see Renault (disambiguation. The arrangement lasted until March 2, 1987, when American Motors was purchased by the Chrysler Corporation, which discontinued the use of AMC and Renault brand names in the United States. Events 986 - Louis V becomes King of the Franks. 1127 - Assassination of Charles the Good Year 1987 ( MCMLXXXVII) was a Common year starting on Thursday (link displays 1987 Gregorian calendar) Chrysler LLC is an American Automobile manufacturer that has been producing Automobiles since 1925 The Jeep line was continued, as well as some of the models under the Eagle marque. Jeep is an Automobile Marque (and registered trademark of Chrysler. Eagle was a Marque of the Chrysler Corporation following the purchase of American Motors Corporation (AMC and aimed at the enthusiast driver
In January 1954, Nash-Kelvinator Corporation acquired the Hudson Motor Car Company (in what was called a merger) to form American Motors. Nash-Kelvinator Corporation was the result of a merger between Nash Motors and Kelvinator Appliance Company The Hudson Motor Car Company made Hudson and other brand Automobiles in Detroit Michigan, from 1909 to 1954 When the merger was completed in the spring of 1954, Hudson's CEO, A.E. Barit was retained as a consultant and given a seat on the Board of Directors in the new company, and Nash's George W. Mason was made President and CEO of the new concern. AE (Abraham Edward Barit ( August 30, 1890 - July 14, 1974) was an American industrialist who served as the President and CEO of the Hudson A consultant (from the Latin consultare means "to discuss" from which we also derive words such as consul and counsel) is a Professional George Walter Mason ( March 12[[ 891]] - October 9[[ 954]] was an American industrialist
Mason, the architect of the merger, believed that the only chance of survival for America's remaining independent automakers was for them to join forces in one large, multibrand auto giant, able to challenge the "Big Three" - General Motors, Ford, and Chrysler - as an equal. General Motors Corporation ( GM) ( is a multinational automobile manufacturer founded in 1908 and headquartered in the United States. Ford Motor Company is an American Multinational corporation and the world's fourth largest automaker based on Worldwide vehicle sales, following Chrysler LLC is an American Automobile manufacturer that has been producing Automobiles since 1925 Mason also entered into informal discussions with James J. Nance of Packard to outline his strategic vision. James J Nance, (b February 19 1900 d July 1984 was an American industrialist and automobile industry leader Strategic planning is an Organization 's process of defining its Strategy, or direction and making decisions on allocating its resources to pursue this strategy Nance saw value in the concept, and interim plans were made for AMC to buy Packard Ultramatic automatic transmissions and Packard V8 engines for certain AMC products. For the Voigtländer SLR camera see Voigtländer Ultramatic CS Ultramatic was the trademarked name of the Packard Motor Car Company's Automatic A V8 engine is a V engine with eight cylinders mounted on the Crankcase in two banks of four cylinders in most cases set at a right angle to each other
Packard did acquire Studebaker as planned, in 1954, and the resulting Studebaker-Packard Corporation (S-P) cooperated with AMC by making the new 308 CID (5 L) Packard V8 engine and Packard's Ultramatic automatic transmission available to AMC, for its Nash Ambassador and Hudson Hornet models. Packard was an American luxury Automobile marque built by the Packard Motor Car Company of Detroit Michigan, and later by the Studebaker-Packard Corporation Studebaker Corporation, or simply Studebaker, was a United States Wagon and Automobile manufacturer based in Studebaker-Packard Corporation was the entity created by the purchase of the Studebaker Corporation of South Bend Indiana by the Packard Motor Car Company However, Mason's death in 1954 placed George W. Romney at the helm of AMC and one of Romney's first official statements a week after Mason's death, as reported in October 25, 1954 edition of Time Magazine, was to announce that there would be no merger talks with Studebaker-Packard "at this time or in the foreseeable future. George Wilcken Romney ( July 8 1907 July 26 1995) was an American Businessman and a Politician. Events 1147 - The Portuguese, under Afonso I, and Crusaders from England and Flanders conquer Lisbon after a Year 1954 ( MCMLIV) was a Common year starting on Friday (link will display full 1954 Gregorian calendar) Time (trademarked in capitals as TIME) is a weekly American Newsmagazine, similar to Newsweek and " This announcement was most likely made in response to S-P President James Nance's refusal to consider any merger proposal in which he could not be in the top command position. This is considered to have been a matter of personalities, as Mason and Nance had formerly been competitors as heads of the Kelvinator and Hotpoint appliance companies, respectively. Romney agreed with Mason's commitment to buy S-P products; however, the understanding between Mason and Nance had been that S-P would endeavor to purchase parts from American Motors in return. S-P never lived up to its end of the gentleman's agreement. Consequently, Romney felt the Packard engines and transmissions were too expensive, and ordered AMC engineers to begin development of the company's own V8 engine. American Motors Corporation (AMC produced a series of widely-used V8 engines from the mid-1950s before being absorbed into Chrysler. For better or worse, both would have to go it alone in the ever more competitive automobile market.
By 1964, Studebaker production in the United States had ended (its Canadian operations closed in 1966) leaving only the Big Three, as well as the much smaller AMC, Kaiser Jeep, International Harvester, and the tiny Avanti Motor Company and Checker Motors remaining in the North American auto business. Kaiser Jeep was the result of the merger between the Kaiser-Frazer Corporation, an independent Automaker based in Willow Run, Michigan, and the International Harvester Company ( IHC or IH; now Navistar International Corporation) was an agricultural machinery construction equipment Checker Motors Corporation is a Kalamazoo Michigan, based automotive subcontractor that was once the manufacturer of the famed Checker automobile the iconic
American Motors combined the Nash and the Hudson product lines under a common manufacturing strategy, while retaining both Nash and Hudson established dealer networks, beginning in 1955. The fast-selling Rambler model was sold under both the Nash and Hudson labels in 1955 and 1956, eventually becoming a marque in its own right, and the mainstay of the company. These badge-engineered Ramblers, along with similar Metropolitans, were identical, aside from hubcaps, nameplates, and a few other minor trim details. For a list of vehicles that have been badge engineered see List of badge engineered vehicles. The pre-existing full-size Nash product line was continued and the Nash Statesman and Ambassador were heavily restyled to become the "new" Hudson Wasp and Hudson Hornet. The Nash Statesman (1949-1956 was the lower-priced version of the two main Nash automobile series and was priced below the top-line Nash Ambassador. The Hudson Wasp is an automobile that was produced by the Hudson Motor Car Company of Detroit Michigan between 1952 and 1954 The Hudson Hornet is an automobile that was produced by the Hudson Motor Car Company of Detroit Michigan between 1951 and 1954 The two cars, while sharing a common body shell, were quite distinct, perhaps even more than they should have been. They were at least as different from one another as Chevrolet and Pontiac, and in some ways more so. Hudsons and Nashes each used their own engines as they had previously: the Hudson Hornet continued to offer the famous 308 CID (5 L) I6 that had been America's stock car racing (NASCAR) champion during the early 1950s, while the Wasp now used the engine of the former Hudson Jet. The National Association for Stock Car Auto Racing ( NASCAR) is the largest sanctioning body of Stock cars in the United States. The Nash Ambassador and Statesman continued with their well-known overhead valve and L-head sixes, respectively. Hudson and Nash cars had different front suspensions, and the only sheet metal panels that interchanged between the two were the trunk lids. Even the rear window glass did not interchange. Dash panels, and even the braking systems were different. As noted earlier, the same Packard (and later American Motors) designed V8 engines were available in both Hudson Hornet and Wasp, and their Nash counterparts. Hudson aficionados disliked the soft handling and ride of the derisively nicknamed "Hash" models[1], but the cars did offer an improved ride and much better driver and passenger visibility, not to mention greater fuel economy due to the lighter weight of the Nash unitized body.
For the 1958 model year, the Nash and Hudson brands were dropped in favor of the popular Rambler name, which now became a marque in its own right. Rambler was an Automobile brand name used by the Thomas B Jeffery Company between 1900 and 1914 then by its successor Nash Motors from 1950 to 1954 The slow-selling, British-built Nash Metropolitan subcompact became its own standalone brand and continued on for a few more years, sharing showroom space with Rambler, finally being dropped after 1962. The Nash Metropolitan is a car that was sold from 1954 to 1962 The prototype 1958 Nash Ambassador / Hudson Hornet, built on a stretched Rambler platform, was renamed at the last minute to "Ambassador by Rambler". Ambassador was the model name applied to the senior line of Nash automobiles from 1932 until 1957 The Hudson Hornet is an automobile that was produced by the Hudson Motor Car Company of Detroit Michigan between 1951 and 1954 To round out the model line, American Motors did something totally unheard of and never successfully duplicated to this day - they reintroduced the old 1955, 100-inch (2,500 mm) wheelbase Nash Rambler as the new Rambler American with only a few modifications. The Rambler American was an automobile manufactured by the American Motors Corporation (AMC between 1958 and 1969 This gave Rambler a compact lineup with 100-inch (2,500 mm) American, 108-inch (2,700 mm) Rambler Six and Rebel V8, as well as the 117-inch (3,000 mm) Ambassador wheelbase vehicles. The Rambler Six was an intermediate sized automobile that was built and sold by American Motors Corporation (AMC The Rambler Rebel was an automobile produced by the American Motors Corporation (AMC of Kenosha Wisconsin from 1957-60 and again in 1966 and 1967
Under the leadership of George W. Romney, Rambler automobiles were among the best-known products among consumers. George Wilcken Romney ( July 8 1907 July 26 1995) was an American Businessman and a Politician. This was because Romney's vision focused solely on the compact car, a fuel-efficient vehicle twenty years before there was a real need for them. [2] Thus, while the "Big Three" were introducing ever larger cars AMC undertook a "dinosaur fighter" strategy. Romney became one of the first high-profile media savvy business executives. Moreover, AMC established two core strategic factors: (1) the use of shared components in AMC products and (2) a resistance to follow the restyling race of the Big Three. Critical Success Factor (CSF is a Business term for an element which is necessary for an organization or project to achieve its mission. AMC could focus on cost controls and provide consumers a better value. Rambler became a synonym for solid economy cars.
In an effort to stay competitive, American Motors produced a wide range of products during the 1960s. In the early part of the decade, sales were strong. In 1961, Ramblers ranked in third place among domestic automobile sales. Romney's strategic focus was very successful during the early 1960s as reflected in the firm's healthy profits year after year. Strategic management is the art science and craft of formulating implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives The company became completely debt-free. However, in 1962, Romney resigned to run for Governor of Michigan. A governor is a governing official usually the executive (at least nominally to different degrees also politically and administratively of a non-sovereign level of government Michigan ( is a Midwestern state of the United States of America. His replacement was Roy Abernethy, AMC's successful sales executive. Roy Abernethy ( September
Abernethy believed that AMC'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 expense vehicles. The first cars bearing his signature were the 1965 models. These were a longer Ambassador series and new convertibles for the larger models. A convertible is a type of automobile in which the vehicle's roof can retract and fold away converting it from an enclosed to an open-air vehicle During mid-year a fastback, called the Marlin, was added. A fastback is a Car body style whose roofline slopes continuously down at the back Origin of the Marlin AMC's closest competitor Chrysler had been developing the turbine engine for use in automobiles during the fifties and made a prototype turbine powered showcar Rather than competing directly with Ford's new pony-car, AMC's "family-sized" car emphasized personal-luxury. The pony car is a class of Automobile launched and inspired by the Ford Mustang in 1964 A personal luxury car is a marketing term used to describe highly styled Luxury vehicle intended for the comfort and satisfaction of its owner/driver sacrificing Abernethy also called for the de-emphasis of the Rambler brand. The 1966 Marlin and Ambassador lost their Rambler nameplates, and were badged as "American Motors" products. The new models shared fewer parts among each other and were more expensive to build. The continuing quest to match the "Big Three" with annual styling changes required large expenditures. A new line of redesigned cars in the full and mid-sized markets was launched in the fall of 1966. A full-size car is a Marketing term used in North America for an Automobile larger than a Mid-size car. A mid-size car (occasionally referred to as an intermediate) is the North American and Australian term for an Automobile with a size between The cars won acclaim for their fluid styling, but Abernathy's ideas did not work as they only confused the firm's core customers. Sales of the new Rebel and Ambassador models dropped after their introduction. There were quality control problems, as well as persistent rumors of the company's demise because of its precarious cash flow.
Abernethy was ousted from AMC and damage control fell to the new CEO, Roy D. Chapin Jr. (son of Hudson Motors founder Roy D. Chapin). Roy Dikeman Chapin ( 23 February, 1880 - February 10, 1936) was an American industrialist and Automaker. He quickly instituted changes to AMC's offerings and tried to regain market share. Chapin's first decision was to cut the price of the Rambler to within US$200 of the basic Volkswagen Beetle. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been The Volkswagen Beetle, officially known as the type 1 and originally called ‘Käfer’ is an Economy car produced by the German auto maker Volkswagen Innovative marketing ideas included making air conditioning standard on all 1968 Ambassador models (available as a delete option). In popular usage "marketing" is the promotion of products especially Advertising and Branding However in professional usage the term has a wider meaning of The term air conditioning refers to the cooling and dehumidification of indoor air for Thermal comfort. This made AMC the first U. S. automaker to make air conditioning standard equipment on its cars, beating out all other makes; including luxury makes Lincoln, Imperial, and Cadillac. Lincoln is an American Luxury car manufacturer operated under the Ford Motor Company. for Chrysler branded models before 1955 and after 1983 see Chrysler Imperial Imperial was the Chrysler Corporation 's prestige Cadillac is a Brand of Luxury vehicles owned by General Motors. The company also introduced exciting entries for the decade's muscle car boom, most notably the AMX; while the Javelin served as the company's entrant into the sporty "pony car" market created by the Ford Mustang. Origin of AMX The AMX name originates from the " A merican M otors e' X' perimental" code used on two early AMC prototypes that were shown on 1968&ndash1969 The Javelin was a production version of one of the AMX prototypes shown around the USA during the 1966 AMX project tour The Ford Mustang sports coupe, manufactured by the Ford Motor Company, was initially based on the Ford Falcon Additional operating cash was derived in 1968 through the sale of Kelvinator Appliance, once one of the firm's core operating units. Kelvinator is an Appliance company owned by Electrolux of Sweden since 1986
The Rambler brand was completely dropped after the 1969 model year in the U. S. and Canada, although it continued to be used in several overseas markets as either a model or brand name, with the last use in Mexico in 1983. The United Mexican States ( or commonly Mexico (ˈmɛksɪkoʊ () is a federal constitutional Republic in North America. From 1970, "AMC" was the brand used for all American Motors passenger cars; and all vehicles from that date bore the AMC 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 all-wheel drive passenger cars were initially marketed as the "American Eagle". Four-wheel drive, 4WD, or 4x4 ("four by four" is a four-wheeled Vehicle with a drivetrain that allows all four Wheels to
Chapin also expanded American Motors product line in 1970, through the purchase of the Kaiser-Jeep Corporation (formerly Willys-Overland) from Kaiser Industries. Willys was the brand name used by the United States Automobile company Willys-Overland Motors best known for its production of military and civilian Henry John Kaiser ( May 9, 1882 — August 24, 1967) was an American Industrialist who became known as the father of modern American This added the iconic Jeep brand of light trucks and SUVs, as well as Kaiser-Jeep's lucrative government contracts - notably the M151 MUTT line of military Jeeps and the DJ-Series postal Jeeps. Jeep is an Automobile Marque (and registered trademark of Chrysler. AMC 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 manufacturer based in South Bend Indiana, best known for the civilian
The 1970s started on a high note. In 1970, all passenger cars were consolidated under one distinct brand identity. It also marked the debut of the AMC Hornet range of compact cars. The AMC Hornet is a compact Automobile made by the American Motors Corporation (AMC beginning with the 1970 model year and continuing through the 1977 model
American Motors was an innovator in using the same platform for a variety of models. Thus, the new Hornet platform was used to create the first American-built subcompact - the AMC Gremlin. The AMC Gremlin is a Subcompact car that was made by the American Motors Corporation (AMC for nine model years It was introduced on April 1, 1970. Events 527 - Byzantine Emperor Justin I names his nephew Justinian I as co-ruler and successor to the throne Year 1970 ( MCMLXX) was a Common year starting on Thursday (link shows full calendar of the Gregorian calendar. The Hornet went on to become American Motors' best-selling passenger car since the Rambler Classic, with more than 860,000 units sold before the end of production in 1977. The Gremlin was not far behind, with more than 670,000 sold from 1970 to 1978.
The successful product launches of the Hornet and Gremlin convinced AMC to continue with new product developments. The new mid-sized AMC Matador arrived for 1971 as a replacement for the Rebel. 1978 AMC Matador leftsidejpg|thumb|250px|1978 AMC Matador sedan]] The AMC Matador is an intermediate car that was built and sold by American Motors Corporation AMC played on the lack of recognition of the name by using an advertising campaign built around the question "What's a Matador?"[3] Starting in 1974, the Matador evolved into two distinct vehicles - conventionally boxy sedans and station wagons, and a radically styled two-door called the Matador Coupe. After 1975, the Matador sedan and wagon took the place of the discontinued Ambassador as AMC's flagship model. Nash and AMC made the Ambassador from 1927 to 1974, the longest used model name of any AMC product.
Matador Coupe sales never lived up to expectations and its unique design meant it shared few components other than the suspension, drive train, some trim, and interior parts with the sedans. Most of the tooling for the sedans and wagons dated back to the 1967 Rambler Rebel and had long been paid for. Nevertheless, by 1978, sales of large-sized cars fell with the rising gasoline prices, and all Matador models were discontinued.
Beginning in 1974, AMC's AM General subsidiary began building buses for urban transit systems, in cooperation with Flyer Industries of Winnipeg, Canada. The AM General coach, named "Metropolitan", saw sales reach 5,212 units until production was halted in 1978[4].
The AMC Pacer, introduced in 1975, was an innovative gamble and another well-intentioned entry into the market AMC seemed to know best. The AMC Pacer is a two-door compact Automobile produced in the United States by the American Motors Corporation between 1975 and 1980 The development of the Pacer prior to its 1975 introduction coincided with two developments in U. S. Federal passenger auto laws. The first, the reduction in allowed passenger auto engine emissions would have been met by the use of the Wankel type engine whose exterior compactness allowed for extensive engine bay emission control equipment. Automobile emissions control covers all the technologies that are employed to reduce the Air pollution -causing emissions produced by Automobiles Exhaust emissions The Wankel engine is a type of Internal combustion engine which uses a rotary design to convert pressure into a rotating motion instead of using reciprocating The second, increases in U. S. passenger auto safety laws was met by the designed-in safety features such as internal door beams. However, these safety features, the wide exterior and the extensive window glass caused the Pacer to be very heavy for its exterior length.
Billed as "the first wide small car", the Pacer was an attempt to build a subcompact car with the comfort of a full-sized one. To this end, the car was as wide as a typical Cadillac of the day, yet no longer than the Gremlin. Cadillac is a Brand of Luxury vehicles owned by General Motors. This provided the same front seat space as a luxury car within the length of a typical compact. The Pacer was also unconventional with its bulbous, wrap around window glass, accounting for 35% of the car's surface area, thus reducing blind spots. Among other unique features, the passenger door was four inches longer than the driver's door, to facilitate curbside back seat access.
American Motors planned to use a General Motors-built Wankel rotary engine for the Pacer. General Motors Corporation ( GM) ( is a multinational automobile manufacturer founded in 1908 and headquartered in the United States. The Wankel engine is a type of Internal combustion engine which uses a rotary design to convert pressure into a rotating motion instead of using reciprocating However, with the advent of the Arab Oil Embargo energy crisis of 1973, GM promptly aborted their rotary engine development program due to, among others factors, the excessive fuel consumption of the Wankel engine compared to conventional piston engines with the same power output. The 1973 oil crisis began on October 17 1973 when the members of Organization of Arab Petroleum Exporting Countries (OAPEC consisting of the Arab members of Thus, AMC was stuck with a car that had no engine. They had to shoe-horn their own existing 232 CID (3. 8 L) and 258 CID (4. 2 L) AMC Straight-6 engines into the Pacer instead. The American Motors Corporation (AMC Straight-6 family of engines was used by a number of AMC and Jeep vehicles from 1964 through 2006 The sixes offered better fuel economy than a rotary engine would have, yet resulted in relatively poor fuel economy in light of the new focus on energy efficiency. In addition, the Pacer was all-new except for the drive train, sharing virtually no components with other AMC cars. This made it expensive to produce, and when sales took a steep fall after the first two years, the manufacturing cost per vehicle skyrocketed. Two attempts to broaden the Pacer's appeal were made: an unusual station wagon variant was introduced, and the front end was re-styled with a raised-center hood in order to provide space to install AMC's V-8 engine. The failure of the Pacer and the Matador Coupe are often used as the reasons for AMC's ultimate demise, as their development and production costs drained corporate accounts of much needed capital which could have been used to update and modernize the already popular Hornet and Gremlin lines.
As the decade wound down, the company found itself with aged products, unable to compete in a very hotly contested market, and in the midst of a growing energy crisis.
In 1977, the company introduced a new front end design for the Gremlin, revamped the rear hatch and fascia, and a more fuel efficient U. S. -produced 2. 0 L (122 cu in) 4 cylinder Volkswagen designed Audi engine which AMC produced for a short period under the AMC name (see below under engines). AUDI AG, ( Xetra: NSU commonly known as Audi (aˈʊdi is a German Automobile manufacturer which produces Audi branded cars with headquarters However, the cost of the engine was high, so AMC - in a curious move - left the cheaper-to-build 232 CID (3. 8 L) as standard equipment. In the midst of a gas crisis, AMC had to have a fuel-thrifty model for dealers to sell.
Another major change in the company's lineup for 1977 was the reemergence of the AMX nameplate. Origin of AMX The AMX name originates from the " A merican M otors e' X' perimental" code used on two early AMC prototypes that were shown on Little more than a sports appearance package offered on the Hornet hatchback, it came standard with AMC's 258 CID (4. The AMC Hornet is a compact Automobile made by the American Motors Corporation (AMC beginning with the 1970 model year and continuing through the 1977 model Hatchback is a term designating an Automobile design containing a passenger cabin with an integrated Cargo space accessed from behind the vehicle by a single 2 L) inline-6 mated to either a 4-speed manual transmission or 3-speed automatic. The AMC 304 CID (5 L) V8 was optional, but only available with the automatic transmission.
The Pacer wagon debuted in 1977, as well. All Matadors received a host of standard equipment that was formerly optional (e. g. power steering, automatic transmission), thus negating the need for the now-defunct Brougham package. The Matador coupe received a new landau vinyl roof treatment with opera windows as optional equipment, and a new Harvest Beige/Sand Tan two-tone paint scheme for top-line Barcelonas.
For 1978, the Hornet platform was redesigned and renamed the AMC Concord. An automobile platform is a shared set of common design engineering and production efforts as well as major components over a number of outwardly distinct models and even types of The AMC Concord was a Compact car made by the American Motors Corporation (AMC starting with model year 1978 and continuing to 1983 The front fenders and related panels were borrowed from the new Gremlin design with very minor changes. The result was a car that looked very different and fresh compared to the aging Hornet. AMC aimed at the emerging "premium compact" market segment with the Concord, with special attention to ride and handling, and including a long list of standard equipment, tasteful trim, and interior luxury. Gremlins picked up a new instrument panel borrowed from the Concord, as well as a Hornet AMX-inspired GT sports appearance package, and a new striping treatment for X models. The AMC Pacer received a modified hood with a raised center section designed so that the engine bay would accommodate a V-8 engine. A new Mercedes-type crosshatch grille was seen at the front, which reflected the hood's new shape. The former Pacer X package gave way to a Sport package, as well. Meanwhile, sales of the Matador Coupe, sedan and wagon had been sliding steadily, and the decision was made to eliminate the 304 CID (5 L) V8 engine from the options list - leaving only the 258 CID (4. 2 L) Inline-6 (standard on coupes and sedans) and the 360 CID (5. 9 L) V8 (optional on coupes and sedans, standard on wagons) as the only available engines. The two-tone Barcelona luxury package became available on Matador sedans for the first time, while the Barcelona coupes added an Autumn Red with Claret two-tone paint scheme option. The changes were not enough to keep interest in the vehicle, so AMC trimmed Matador from the lineup at the end of the model year after a final run of 10,576 units.
In 1979, the Spirit sedan replaced the Gremlin. The AMC Spirit is a Subcompact automobile produced by the American Motors Corporation (AMC in 1979 to replace the Gremlin on which it was based An ingenious redesign of the rear panels created a fastback version of the car, which AMC dubbed the Spirit Liftback. A liftback is a Car body style in which the cargo space (boot is accessed through a Tailgate that extends up to the higher end of the C-pillar and includes The Liftback quickly proved to be a successful line extension.
The Pacer remained largely unchanged - only a new leather-line Limited trim line was added - and rapidly-declining sales indicated the end was near. The last Pacer would be produced in December 3, 1979, for the 1980 model year. Events 1800 - War of the Second Coalition: Battle of Hohenlinden, French Year 1979 ( MCMLXXIX) was a Common year starting on Monday (link displays the 1979 Gregorian calendar)
Concords picked up new quad rectangular headlights, a new chrome vertical-bar waterfall grille, and hatchbacks (in their final season) became available in DL trim. On May 1, 1979, AMC celebrated the 25th anniversary of the Nash-Hudson merger by releasing "Silver Anniversary" editions of the AMC Concord and Jeep CJ in two-tone silver. Events 305 - Diocletian and Maximian retire from the office of Roman Emperor. Year 1979 ( MCMLXXIX) was a Common year starting on Monday (link displays the 1979 Gregorian calendar) Jeeps at this point were making around 50% of the company's sales and most of its profits; and a new small, fuel-efficient car from Renault - courtesy of a new deal[5] struck between the two companies - began to appear in dealer showrooms: the Renault 5, sold in the U. S. as "LeCar".
The Concord and Spirit models were dropped after 1983.
In February 1977 Time magazine reported that although AMC had lost $73. 8 million in the previous two fiscal years, U. S. banks had agreed 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. [6]
Also in 1977, Gerald C. Meyers was appointed chairman and chief executive. Gerald C Meyers is an Industrialist, Author, speaker former Chairman of American Motors Corporation (AMC active business consultant and an expert in
In May 1978 the Environmental Protection Agency ordered the recall of all AMC’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. [7]
AMC 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. Events 1399 - Henry IV is proclaimed King of England. 1744 - France and Spain defeat the Year 1978 ( MCMLXXVIII) was a Common year starting on Sunday (link displays the 1978 Gregorian calendar) 7 million profit on sales of $2. 6 billion. However, AMC faced costly engineering work to bring their Jeeps into compliance with a federal directive for 4 wheel drive vehicles to return 15 mpg by 1981. [8]
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. AMC would receive a $150 million cash injection, $50 million in credits, and also the rights to start building the Renault 5 in 1982. The Renault 5 (also called the R5 was a supermini produced by the French automaker Renault in two generations between 1972 and 1996 [9] (A deal for Renault products to be sold through the AMC-Jeep dealer network had already been made in 1979. [10]) In return Renault acquired a 22. 5% interest in AMC. [9] 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. For other uses of the abbreviation see CKD Complete knock down (CKD, is a complete kit needed to assemble a vehicle
In 1979 AMC announced a record $83. 9 million profit on sales of $3. 1 billion 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. In October, the company’s car sales surged 37%, while they sank 21% for the industry as a whole. [11]
However a drop in Jeep sales caused by the declining economy and soaring energy prices began to constrict AMC’s cash flow. At the same time, pressure increased on the company’s non-Jeep product lines. The face-lifts and rebranding of AMC’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, Ford, and Chrysler). The Big Three automobile manufactures may refer to The three major American (USA automakers General Motors, Ford and General Motors Corporation ( GM) ( is a multinational automobile manufacturer founded in 1908 and headquartered in the United States. Ford Motor Company is an American Multinational corporation and the world's fourth largest automaker based on Worldwide vehicle sales, following Chrysler LLC is an American Automobile manufacturer that has been producing Automobiles since 1925 The Japanese used streamlined production methods such as outsourcing and Just In Time (JIT) supply-chain management. Outsourcing is Subcontracting a process such as product design or Manufacturing, to a Third-party company Just-in-time ( JIT) is an inventory strategy implemented to improve the Return on investment of a Business by reducing in-process Inventory and They had new, highly efficient assembly plants in the United States. And now they targeted the heart of AMC's passenger product line: small cars.
While Americans turned to the new imports in increasing numbers, AMC continued its struggle at the inefficient and aging Kenosha, Wisconsin facilities—the oldest continuously operating automobile plant in the world, where components and unfinished bodies still had to be transported across the city. Kenosha (kəˈnoʊʃə is a city in and the county seat of Kenosha County, United States.
In early 1980 the banks refused AMC 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. [12] By September that year, AMC’s U. S. market share had fallen to 1. 7%, and in November sales dropped 19. 1%. AMC 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. [13]
The sinking domestic economy exacerbated AMC's problems, even to the extent that its dealers had to be persuaded to stay open.
In January 1982 the company's former president W. Paul Tippett Jr. replaced Gerald C. Meyers as CEO, and Jose Dedeurwaerder, a Renault executive, became president. Dedeurwaerder brought a broad perspective at this critical time: as an engineer and international business executive with 23 years at Renault, he is credited with streamlining many of AMC's arcane management techniques. He also instituted important improvements in plant layouts, as well as in cost and quality control. [14]
Renault, having increased their stake in the company several times to keep it solvent, eventually owned 49% in 1983. This effectively ended AMC's run as a truly American car company.
New ownership and new management heralded a new product venture for AMC: a line of modern front-wheel drive cars, designed by Renault, to be produced at Kenosha. Front-wheel drive (or FF layout) is a form of engine / transmission layout used in Motor vehicles where the engine drives the front Wheels
First product of the AMC-Renault alliance was the 1983 Renault Alliance, a front-wheel drive Renault 9 compact restyled for the American market by Richard Teague and produced by AMC at Kenosha. The Renault Alliance is a subcompact automobile that was built and marketed in North America by the American Motors Corporation (AMC through its partnership with its majority The Renault 9 and Renault 11 are two Small family cars produced by the French manufacturer Renault between 1981 and 1988 Richard A (Dick Teague ( December Marketed as a Renault, with AMC branding confined to decals on the rear windows, it was available as a sedan with two or four doors, a hatchback (introduced in 1984 and badged as Renault Encore), a two-door convertible and, for the final 1987 model year, a higher-performance version of the 2-door sedan and convertible sold as a Renault GTA. Hatchback is a term designating an Automobile design containing a passenger cabin with an integrated Cargo space accessed from behind the vehicle by a single The Renault 9 and Renault 11 are two Small family cars produced by the French manufacturer Renault between 1981 and 1988
The new model, introduced at a time of increased interest in small cars, won several awards including Motor Trend Car of the Year. In the USA Motor Trend magazine was the first to give a Car of the Year award doing so to Cadillac in 1949 (the earliest awards were Motor Trend declared: "The Alliance may well be the best-assembled first-year car we’ve ever seen. Way to go Renault!" But in a 1986 Consumer Reports survey of five-year owners, the 1983 Alliance scored worst in the ratings for "Engine", "Clutch", "Driveline", "Engine cooling", "Suspension", "Exhaust system", "Automatic transmission" and "Manual transmission". [15] Sales, which had begun well, declined, and Alliance production ended in June 1987.
Following the 1983 model year, a single model line—the four-wheel drive Eagle—represented the AMC brand. All the company’s remaining output was branded Renault or Jeep.
Introduced in 1980, the Eagle became one of the company's best-known products and is considered one of the first "crossover SUVs". The AMC Eagle was an All-wheel drive passenger car produced by American Motors Corporation (AMC A Crossover &mdash variously called XUV or CUV, for crossover utility vehicle &mdash is a marketing term for a vehicle that derives from a car while borrowing It had a Concord body shell mounted on an all-new platform that had been developed by American Motors in the late 1970s. The AMC Concord was a Compact car made by the American Motors Corporation (AMC starting with model year 1978 and continuing to 1983 Featuring an innovative full-time four-wheel drive system, it sold best in snow-prone areas. Sales started strongly but declined steeply (the car's styling dated back to the 1970 Hornet). Nevertheless the Eagle survived, albeit only in station wagon form, into the 1988 model year. The last one was built on December 14, 1987. Events 1287 - St Lucia's flood: The Zuider Zee sea wall in the Netherlands collapses killing over 50000 people Year 1987 ( MCMLXXXVII) was a Common year starting on Thursday (link displays 1987 Gregorian calendar)
More beneficial to AMC’s future was the introduction of an all-new line of compact Jeep Cherokee and Wagoneer models in 1983. The Jeep Wagoneer was an early Sport utility vehicle (SUV produced under varying Marques from 1963 to 1991 The popularity of these downsized Jeeps pioneered a new market segment for what later became defined as the sport utility vehicle (SUV). A sport utility vehicle ( SUV) is a generic marketing description for a rugged automotive vehicle similar to a Station wagon but built on a light-truck chassis They initially used the AMC 2. 5 L (153 cu in) OHV four-cylinder engine with a carburetor, and a General Motors-built 2. The American Motors Corporation Straight-4 engine was used by a number of AMC Jeep, and Dodge vehicles from 1984 through 2002 A carburetor (North American spelling or carburettor ( Commonwealth spelling) is a device that blends air and Fuel for an Internal 8 L (171 cu in) carbureted V6 was optional. In 1986, throttle-body injection replaced the carburetor on the 2. 5 L I4 engines. A Renault 2. 1 L (128 cu in) Turbo-Diesel I4 diesel was also offered. Diesel or Diesel fuel (ˈdiːzəl in general is any Fuel used in Diesel engines The most common is a specific fractional distillate of petroleum Starting with the 1987 models a 4. 0 L (244 cu in) I6 engine, derived from the older 258 CID (4. 2 L) I6 with a new head design and an electronic fuel injection system, replaced the outsourced V6. Fuel injection is a system for mixing fuel with air in an Internal combustion engine. Outsourcing is Subcontracting a process such as product design or Manufacturing, to a Third-party company American Motors' "new" engine was designed with help from Renault and incorporated Renault-Bendix (Renix) parts for fuel and ignition management. The term Renix has a number of applications In certain carburettor powered Renault and Volvo models it provided an electronic ignition system consisting of an ECU to replace the job One older design was continued: the Grand Wagoneer full-size luxury SUV and the related J-Series pickups, built on the same chassis as the earlier SJ model Wagoneers and Cherokees that dated from 1963, with the AMC 360 CID (5. 9 L) V8. Production of the full-sized pickups ceased after 1987. The Grand Wagoneer and its engine would also be dropped after 1991.
1985 was a turning point for the company as the market moved away from AMC's small models. With fuel relatively cheap again, buyers turned to larger more powerful automobiles and AMC was unprepared for this development. Even the venerable Jeep CJ-5 was dropped after a 60 Minutes TV news magazine exposé of rollover tendencies under extreme conditions. Not to be confused with the BBC news magazine program Sixty Minutes (TV series. AMC also confronted an angry work force. 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 about to be shut down. At the same time, Chrysler was having trouble meeting demand for its M-body rear-drive models (Dodge Diplomat, Plymouth Gran Fury and Chrysler Fifth Avenue). The Dodge Diplomat was a Mid-size car and it was manufactured from 1977 to 1989 by the Chrysler Corporation 's Dodge brand and practically identical 1975-1977 In 1975 the mid-size Plymouth Satellite was restyled and renamed Plymouth Fury. Fifth Avenue was a name used by Chrysler Corporation on its largest models from 1979 to 1993 They were assembled using the old gate and buck system, so it was easy to move the tools, Chrysler would supply the components and control the quality, while AMC would assemble the car; therefore, Lee Iacocca and Joe Cappy reached an agreement to use some of AMC's idle plant capacity in Kenosha. [16]
These problems came in the midst of a transfer of power at AMC from Paul Tippet to a French executive, Pierre Semerena. The new management responded with tactical moves by selling the lawn care Wheel Horse Products Division and signing an agreement to build Jeeps in the People's Republic of China. Wheel Horse was a manufacturer of lawn and garden tractors The business was started in the two-car garage of Elmer Pond in 1946 Talk People's Republic of China) PEOPLE'S REPUBLIC OF CHINA ARTICLE GUIDELINES The Pentagon had problems with AM General, a significant defense contractor, being managed by a partially French-government-owned firm. The Pentagon is the Headquarters of the United States Department of Defense, located in Arlington County, Virginia. AM General is an American heavy vehicle manufacturer based in South Bend Indiana, best known for the civilian A defense contractor (or defence contractor, also sometimes called a military contractor) is a Business organization or individual that provides products The US 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: AMC's design vice president for 26 years, he was responsible for many Jeep and AMC designs including the Gremlin, Pacer, Matador coupe, Rambler American, AMC Javelin and AMX Hornet
American Motors' major stockholder, Renault, itself was experiencing financial troubles of its own in France. Richard A (Dick Teague ( December The investment in AMC (including construction of a new Canadian assembly plant in Brampton, Ontario) forced cuts at home, resulting in the closure of several French plants and mass layoffs. Brampton (pronounced bramton is the third-largest city in the Greater Toronto Area of Ontario, Canada and the seat of Peel Region. Layoff is the temporary suspension or permanent Termination of employment of an Employee or (more commonly a group of employees for Business reasons Renault was down to just three alternatives regarding its American holdings: (1) They could declare AMC officially bankrupt thereby lose its investment; (2) They could come up with more money, but Renault management perceived AMC as a bottomless pit; or (3) AMC could be put up for sale and the French could get back part of their investment. Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their Creditors Creditors may file a bankruptcy petition against Against these detractions, Renault's chairman, Georges Besse, 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 at the time at Bramalea -- as well as the recent introduction of the thoroughly modern, fuel-injected 4. Georges Besse ( December 25 1927 in Clermont-Ferrand, France — November 17 1986 in Paris) was a French businessman 0-liter and 2. 5-liter engines. In addition, Jeep vehicles were riding an unprecedented surge in demand. It seemed to Besse and others that AMC was on course for profitability.
On November 17, 1986, Georges Besse, who had a high profile among French capitalists, was assassinated by Action Directe, a clandestine militant extremist group variously described as communist, anarchist and Maoist,[17] which professed strong sympathies for the proletariat and the aspirations of the Third World. Events 284 - Diocletian is proclaimed emperor by his soldiers Year 1986 ( MCMLXXXVI) was a Common year starting on Wednesday (link displays 1986 Gregorian calendar) Georges Besse ( December 25 1927 in Clermont-Ferrand, France — November 17 1986 in Paris) was a French businessman Action directe (AD was a French armed group which committed a series of assassinations and violent attacks in France between 1979 and 1987. The proletariat (from Latin la ''proles'' "offspring" is a term used to identify a lower Social class; a member of such a class is proletarian Third World is a name given to nations that are generally considered to be underdeveloped economically The murder was carried out by members of Action Directe's Pierre Overney Commando (named after a Maoist militant killed by a Renault factory guard). [18] The group stated that the murder was in retaliation for Besse having sacked tens of thousands of workers - 34,000 from the French aluminium producer PUK-Péchiney[19] [20] and 25,000 from Renault.
Under pressure from Renault executives following Besse's death, Renault's new president set out to repair employee relations and divest the company of its investment in American Motors. In Finance and Economics, divestment or divestiture is the reduction of some kind of Asset for either financial goals or ethical objectives
The earlier arrangement between Chrysler and AMC, under which AMC produced M-body rear-drive cars for two years, 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 AMC producing a car for a competitor facilitated the negotiations. [21] In March 1987, Chrysler agreed to buy Renault's share in AMC, plus all the remaining shares, for US$1. 1 billion. AMC became the Jeep-Eagle division of Chrysler. Jeep-Eagle was the name of the automobile sales division created by the Chrysler Corporation when it bought the assets of American Motors in 1987 It was the Jeep brand that Chrysler CEO Lee Iacocca really wanted—in particular the Grand Cherokee, then under development, which proved highly profitable for Chrysler (the nameplate remains in production today). Lido Anthony "Lee" Iacocca (born October 15, 1924) is an American businessman most commonly known for his revival of the The Jeep Grand Cherokee is a Mid-size unibody Sport utility vehicle produced by the Jeep division of Chrysler. Additional benefits included AMC's recently modernized factories, which offered Iacocca the opportunity to increase his company's production capacity; the AMC dealer network, to strengthen Chrysler's retail distribution (many AMC dealers switched to selling Chrysler products); and AMC's underrated organization and management talent, which Chrysler quickly assimilated (numerous leading Chrysler engineers and executives were ex-AMC). Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities such as factories and machinery [22]
Ironically the sale came at a time when the automotive press was very enthusiastic about the proposed 1988 lineup of Renault and Jeep vehicles, some even speculating AMC/Renault finally had the products to turn the company around.
The sale marked Renault's withdrawal from the North American market. This is about the company for other uses see Renault (disambiguation. However the French company renewed its stake there with its subsequent majority holding in Nissan.
A new company was formed in Palmdale, California in 2001 by Ron Simon. Palmdale, the first community within the Antelope Valley to incorporate as a city (on August 24, 1962 Simon registered a new trademark for the monochrome American Motors logo. [23] The company's website specifically claimed no affiliation to the previous American Motors, but used the previous company's logos on its website. [24] The website is now dead, and Simon's trademark expired in 2005.
AMC was forced to constantly innovate for 33 years until it was absorbed by Chrysler in 1987. Moreover, the lessons learned from this experience were integrated into the company that bought AMC. 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 AMC experience continue to provide benefits to other firms in the industry. There are a number of legacies from AMC's business strategies. Strategic management is the art science and craft of formulating implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives
American Motors' ability to formulate strategies were often evaluated by industry critics as "strokes of brilliance". [25] According to Roy D. Chapin Jr., AMC 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. [25] An essential strategy practiced by AMC was to rely on outside vendors to supply components in which they had differential advantages. Outsourcing is Subcontracting a process such as product design or Manufacturing, to a Third-party company Competitive advantage is a position a firm occupies against its competitors This has finally been accepted in the US auto industry, but only after each of the Big Three experienced the failure of attempting to be self-sufficient. The automotive industry is the industry involved in the design development manufacture marketing and sale of Motor vehicles In 2007 more than 73 million motor vehicles Another example of AMC's 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. Core competency is something that a firm can do well and that meets the following three conditions It provides consumer benefits It is not easy for competitors to imitate Ironically, AMC was never stronger than just before its demise. [25]
AMC's managers anticipated important trends in the automotive industry. [26] For example, it preached fuel efficiency long before auto buyers demanded it. AMC sought out partnerships in manufacturing and sales worldwide, decades before any of the international consolidations among automobile makers took place. AMC was first in seeking refuge with a foreign automaker, Renault, to keep operating. Although small in size, the company was able to introduce numerous innovations. Even one of AMC'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. AMC's four-wheel drive vehicles established the foundation for today's SUV market and the "classic" Jeep models continue to be the benchmark in this field. AMC was also effective in other areas such as marketing by introducing low rate financing. 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. [27]
According to Robert Lutz, former President of Chrysler, the AMC acquisition was a big and risky undertaking. Robert A "Bob" Lutz (born February 12 1932 in Zurich, Switzerland) is the General Motors Vice Chairman of Global Product Development for three [28] 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 AMC turned out to be a gold mine for Chrysler. [29] 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". [30] 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". [31]
According to Lutz (1993), while AMC had its share of problems, it was far from being a bunch of "brain-dead losers". He describes the "troops" at AMC 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". Wake Island (also known as Wake Atoll) is a Coral atoll having a Coastline of 12 miles (19 kilometers in the North Pacific Ocean [32] After first reacting with anger to the purchase, Chrysler managers soon anticipated the benefits. To further solidify the organizational competencies held by AMC, Lee Iacocca agreed to retain former AMC units, such as engineering, completely intact. In addition, AMC's lead engineer, François Castaing, was made head of all engineering at Chrysler. François J Castaing (born 1945 in France) is a 27-year veteran automotive executive with Renault, American Motors, and Chrysler. In an unthinkable strategic move, Castaing completely dismantled the entrenched Chrysler groups. In their place AMC's "platform team" were implemented. An automobile platform is a shared set of common design engineering and production efforts as well as major components over a number of outwardly distinct models and even types of 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 by Lutz's view only dramatic action was going to change that. [33] In summary, Chrysler's purchase of AMC laid the critical foundation to help re-establish a strategy for its revival in the 1990s.
Perhaps most interesting is that top managers at Chrysler after the AMC buyout appear to have made errors similar to those by AMC. For example, Chrysler invested heavily in new untested models while not keeping up its profitable high-volume lines. After the DaimlerChrysler merger, the combined company also encountered the problem of having too many platforms. An automobile platform is a shared set of common design engineering and production efforts as well as major components over a number of outwardly distinct models and even types of Mercedes-Benz managers were protective of their designs and components. This policy increased production costs. They could have observed the experience of the Nash and Hudson merger designed to achieve manufacturing efficiencies and savings from component sharing.
The AMC beat also continued at General Motors. General Motors Corporation ( GM) ( is a multinational automobile manufacturer founded in 1908 and headquartered in the United States. GM recruited a new executive team to turn itself from near bankruptcy. Among the new strategists at GM was Lutz who brought an understanding of the importance of passion in the product design. Lutz implemented a new thinking at GM that incorporated the systems and structures that originated from AMC's lean and focused operations. [34]
Renault implemented the lessons it learned from its investment in AMC. The French firm took a parallel approach as it did with its initial ownership of AMC and applied it to resurrect the money-losing Nissan automaker in Japan. For a topic outline on this subject see List of basic Japan topics.
Chrysler revived the "Spirit" name dropped by AMC after 1983 for use on one of its A platform cars, (the Dodge Spirit) from 1989 to 1995. Chrysler 's A platform was the basis for smaller Rear wheel drive cars in the 1960s The Dodge Spirit was introduced in January 1989 as a mid-size 5/6 passenger sedan by Dodge. The planned Renault Medallion was sold as the Eagle Medallion in 1988 and 1989. The Eagle Medallion was a rebadged and re-engineered North American version of the French Renault 21. The Eagle Medallion was a rebadged and re-engineered North American version of the French Renault 21. A Renault/AMC concept, the Summit (slated to replace the Eagle station wagon), was produced by Mitsubishi Motors beginning in 1989. is the sixth largest Automaker in Japan and the seventeenth largest in the world by global unit sales The planned all-new 1988 Renault Premier, a joint development effort between American Motors and Renault, and for which the Brampton Assembly plant (Brampton, Ontario) was built, was sold by Chrysler as the 1988-1992 Eagle Premier, with a rebadged Dodge Monaco variant available from 1990-1992. Brampton Assembly is a Chrysler Automobile factory in Brampton Ontario, Canada. Brampton (pronounced bramton is the third-largest city in the Greater Toronto Area of Ontario, Canada and the seat of Peel Region. The Eagle Premier was an Automobile developed by the American Motors Corporation (AMC and Renault partnership The Dodge Monaco was a full-size Automobile built and sold by the Dodge division of the Chrysler Corporation between 1965 to 1978 and The full-sized Premier's platform was far more advanced than anything Chrysler was building at the time. A full-size car is a Marketing term used in North America for an Automobile larger than a Mid-size car. 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 (another revived AMC model name that was briefly used by Plymouth in the early 1950s), Chrysler New Yorker, Chrysler LHS, Dodge Intrepid, and Eagle Vision. The Chrysler Concorde was a large four-door full-size Front wheel drive sedan produced by Chrysler from 1993 to 2004 The Chrysler New Yorker was a premium automobile built by the Chrysler Corporation from 1939 to 1996 serving for several years as the brand's flagship model The Chrysler LHS is a Full-size, Front wheel drive car based on the Chrysler LH platform. The Dodge Intrepid was a large four-door Full-size, Front-wheel drive sedan. The Eagle Vision was a Full-size, Front-wheel drive Sports sedan. The Chrysler 300M was likewise a Premier/LH-derived car and was initially to have been the next-generation Eagle Vision, until the Eagle brand was dropped after 1998. For the 1999 model year DaimlerChrysler revived the 300 name on the 300M. Eagle was a Marque of the Chrysler Corporation following the purchase of American Motors Corporation (AMC and aimed at the enthusiast driver
The American Motors-developed Jeeps survived for a long time under Chrysler. The Comanche pickup truck lasted until 1992, while the Cherokee remained until 2001 in the United States (the XJ Cherokee was produced in China through 2006 as the Cherokee 2500[35]). Although it was not introduced until 1993, the Jeep Grand Cherokee was initially an AMC-developed vehicle. The Jeep Grand Cherokee is a Mid-size unibody Sport utility vehicle produced by the Jeep division of Chrysler. The 1997 through 2006 Jeep Wrangler is really a lightly updated development of the original American Motors-designed Wrangler introduced in 1986 for the 1987 model year.
Other traces of AMC remain within the present-day Chrysler. AMC's Toledo, Ohio plants continue to turn out Jeep Wranglers and Libertys as well as parts and components for Chrysler, Dodge, and Jeep vehicles (although Toledo Machining and Forge is slated for closure as of 2005). AMC's main plant in Wisconsin is still active, albeit heavily downsized, as the Kenosha Engine Plant, producing engines for several Chrysler Group products, including the Wrangler. Kenosha (kəˈnoʊʃə is a city in and the county seat of Kenosha County, United States. The 4. 0 L engine was used until the 2006 model year by DaimlerChrysler in the Jeep Wrangler. Daimler AG ( (formerly DaimlerChrysler AG) is a German car corporation (not to be confused with the British car-maker Daimler Motor Company) and The Wrangler (also known as the YJ, TJ, and JK, as explained below is an Off-road vehicle produced by American automaker AMC's technologically advanced Bramalea Assembly and Stamping Plants in Brampton, Ontario now produce the best-selling LX-cars - the Dodge Charger, Dodge Magnum, and the Chrysler 300. Brampton (pronounced bramton is the third-largest city in the Greater Toronto Area of Ontario, Canada and the seat of Peel Region. The LX platform is Chrysler 's full-size Rear wheel drive Automobile platform for the mid part of the 2000s The Dodge Charger, is a Rear-wheel drive Full-size Automobile built by Chrysler LLC for its North American Dodge brand The Dodge Magnum name has been used on a number of different Automobiles The most recent is a large Rear-wheel drive Station wagon introduced in 2004 The Chrysler 300 is a Full-size car designed by Haitian-Canadian Ralph Gilles.
AM General, sold by American Motors in 1982, is still in business building the likewise American Motors-designed High Mobility Multi-Wheel Vehicle (HMMWV - "Humvee") for the American and allied militaries. AM General also built the now-discontinued civilian variant - the H1 - and still manufactures a Chevrolet Tahoe-derived companion, the H2, under contract to General Motors, new owners of the civilian Hummer brand. The Chevrolet Tahoe (and very similar GMC Yukon) is a Full-size SUV from General Motors.
Many AMC models are now considered "future collectibles".
For example, only 578 Ambassador 4-door Hardtop station wagons were produced for 1959, making it a rare and desirable collector car. [36]
Hemmings Classic Car magazine included the 1969-70 AMC Matador Rebel SST four-door sedan and the 1975-1978 Matador coupe in their 2008 list of "dollar-for-pound [weight]" cars that can be bought in show-quality condition for a comparatively modest outlay,[37] although buyers are advised against examples with 6-cylinder engines "purely for performance reasons". The writer also notes that "most of AMC's '70s lineup" qualifies for inclusion on the list.
The "collector" AMC models (Javelin, AMX, and performance versions such as the 1957 Rambler Rebel, 1965-67 Rambler Marlin, 1969 Hurst SC/Rambler, 1970 Rebel Machine, and 1971 Hornet SC/360) have always had an enthusiastic following[38] and their prices are going up with the increasing interest. [39][40] Other "non-muscle" AMC automobiles have also become collectible. [41] Even Gremlins are "quite collectible" because of their increasing scarcity, according to one member of the blogosphere. Blogosphere is a collective term encompassing all Blogs and their interconnections [42] It has been said that as the Gremlin shares components with some other AMC models its repair and restoration can be relatively inexpensive compared with other "historic cars". [43]
However one AMC expert who owns thirteen Gremlins estimates that 90% of the surviving cars are modified because parts are so hard to find, while another enthusiast had to buy eight Gremlin parts cars before he could begin restoring his 1974 Gremlin X to stock. [44]
The early Javelin is considered a fun and affordable American classic with a rich racing pedigree and style that will always stand out from the omnipresent packs of Ford, General Motors, and Chrysler pony cars. [45] The Gremlin has been said to have "a cult-like following in today’s collectible car market. "[43] And even the AMC Pacer, one of the so-called "nerd cars", was increasing in value according to a Pacer owner who is the CEO of a major insurance provider for collector car owners. [46]
In 2006, a 1967 Rambler American Rogue in unknown condition was offered for $3500, and a 1967 American 440 hardtop with drag-racing history, condition also unknown, for $3300. [47]
There are many active Rambler and AMC car clubs in the U. S. and elsewhere.
During its long history, American Motors bought, sold and spun-off many components. Some of these still exist today, albeit in vastly changed forms.
Many of the facilities used to produce American Motors vehicles and sub-assemblies are still in use. These include:
At least one major AMC operation is now completely defunct:
Former Factory Facilities
The automaker was famous as an independent underdog, for which it served as an analogy in other contexts.
* - The Metropolitan was introduced by Nash in 1954.
** - The Gremlin was the company's first modern subcompact.
Also: Kaiser Jeeps used the AMC 327, Buick 225 ("Dauntless V6"), Buick 350 ("Dauntless V8"), Willys 134 I4 ("Hurricane"). The PRV engine is an Automobile petrol V6 Engine that was developed jointly by Peugeot, Renault
1 AMC 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 AMC at a plant purchased specifically for production of this engine. Sales never reached numbers to justify taking over total production. AMC made several changes to the engine. They were prevented from using the Volkswagen or Audi names in association with the AMC assembled version by contractual agreement.
In April 2008, Hot Rod Magazine released an article claiming that American Motors was in the process of being revived. Hot Rod magazine is a popular American monthly Magazine devoted the hobby of hot The vehicles in the works were to be the AMX, the Matador, the Ambassador, the Pacer, and the Gremlin. Origin of AMX The AMX name originates from the " A merican M otors e' X' perimental" code used on two early AMC prototypes that were shown on 1978 AMC Matador leftsidejpg|thumb|250px|1978 AMC Matador sedan]] The AMC Matador is an intermediate car that was built and sold by American Motors Corporation The Ambassador was the top-line automobile produced by the American Motors Corporation (AMC from 1958 until 1974 The AMC Pacer is a two-door compact Automobile produced in the United States by the American Motors Corporation between 1975 and 1980 The AMC Gremlin is a Subcompact car that was made by the American Motors Corporation (AMC for nine model years Illustrated with drawings of the concept cars entering production, it was a popular article, although it was later revealed to be an April Fools' joke. This article is about the informal holiday For other uses see April Fool. [67]