Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your American Motors shopping experience:

1. Compare - without doubt the biggest advantage that the American Motors offers shoppers today is the ability to compare thousands of American Motors at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.

2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about

3. Testimonials - don't know anybody that has bought a American Motors? Wrong! If the American Motors is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.

4. Questions - Got a question about American Motors then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....

5. Reputation - Never heard of the company selling American Motors? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about American Motors and build up a picture of their reputation for sales, returns, customer service, delivery etc.

6. Returns - still worried that even after all of the above your American Motors wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.

7. Feedback - happy with your American Motors then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.

8. Security - check for the yellow padlock on the American Motors site before you buy, and the s after http:/ /i.e. https:// = a secure site

9. Contact - got a question about American Motors, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.

10. Payment - ready to pay for your American Motors, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.

{{Infobox Defunct Company| company_name = American Motors Corporation| company_logo = | fate = Acquired by Chrysler (1987)] 1954 [1987, USA| industry =Automobiles
Military vehicles
Sport utility vehicles
Refrigeration
Lawn care products| key_people = [George W. Mason
George W. Romney
Roy Abernethy
Roy D. Chapin Jr.
Richard A. Teague 1954 – sold in 1968
[AM General 1971 – sold in 1985
Beijing-Benz DaimlerChrysler Automotive 1983 – present
(Note: continues under Chrysler)
Wheel Horse 1970s – sold in 1986-->



American Motors Corporation (AMC) was an United States automobile company formed on January 14 1954 by the merger of the Nash-Kelvinator Corporation and the Hudson Motor Car Company. At the time, it was the largest corporate merger in U.S. history, valued at United States dollar198 million ($1.44 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 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. The Jeep line was continued, as well as some of the models under the Eagle automobile marque.

Formation In January 1954, Nash-Kelvinator Corporation acquired the Hudson Motor Car Company (in what was called a Mergers and acquisitions) to form American Motors. 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.

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 Corporation, Ford Motor Company, and Chrysler Corporation - as an equal. Mason also entered into informal discussions with James J. Nance of Packard to outline his Strategic planning. 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.

Packard Motor Car Company did acquire Studebaker as planned, in 1954, and the resulting Studebaker-Packard Corporation (S-P) cooperated with AMC by making the new 308 cubic inch (5.1 L) Packard V8 engine and Packard's Ultramatic automatic transmission available to AMC, for its Nash Ambassador and Hudson Hornet models. 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." 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 AMC V8 engine. 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 (automobile) and Checker Motors Corporation remaining in the North American auto business.

Product development in the 1950s .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 engineering Ramblers, along with similar Metropolitans, were identical, aside from hubcaps, nameplates, and a few other minor trim details. 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 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 in³ (5 L) six that had been America's stock car racing champion a short time before, while the Wasp now used the engine of the former Hudson Jet. 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, 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 (car) name, which now became a marque in its own right. 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 prototype 1958 Nash Ambassador / Hudson Hornet, built on a stretched Rambler platform, was renamed at the last minute to "Ambassador by Rambler". 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 (2440 mm) wheelbase Nash Rambler as the new Rambler American with only a few modifications. This gave Rambler a compact lineup with 100 inch (American), 108 inch or 2743 mm (Rambler Six and Rambler Rebel), as well as rhe 117 inch or 2972 mm (Ambassador) wheelbase vehicles.

Under the leadership of George W. Romney, Rambler automobiles were among the best-known products among consumers. 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.Meyers, Gerald C. (1986) When it hits the fan: Managing the nine crises of business. Houghton Mifflin ISBN 0-395-41171-8. 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 Critical success factor: (1) the use of shared components in AMC products and (2) a resistance to follow the restyling race of the Big Three. AMC could focus on cost controls and provide consumers a better value. Rambler became a synonym for solid economy cars.

Changing focus in the 1960s 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 management was very successful during the early 1960s as reflected in the firm's healthy profits year after year. The company became completely debt-free. However, in 1962, Romney resigned to run for Governor of Michigan. His replacement was Roy Abernethy, AMC's successful sales executive.

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. During mid-year a fastback, called the Rambler Marlin, was added. Rather than competing directly with Ford's new pony-car, AMC's "family-sized" car emphasized Personal luxury car. 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-size car and Mid-size car markets was launched in the fall of 1966. 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). 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 $200 of the basic Volkswagen Beetle. Innovative marketing ideas included making air conditioning standard on all 1968 Ambassador models (available as a delete option). 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 (automobile), Imperial (automobile), and Cadillac. The company also introduced exciting entries for the decade's muscle car boom, most notably the AMC AMX; while the AMC Javelin served as the company's entrant into the sporty "pony car" market created by the Ford Mustang. Additional operating cash was derived in 1968 through the sale of Kelvinator Appliance, once one of the firm's core operating units.

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. 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".

Chapin also expanded American Motors product line in 1970, through the purchase of the Kaiser-Jeep Corporation (formerly Willys-Overland) from Kaiser Industries. 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 U.S. Postal Service Jeeps. 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.

1970s developments 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.

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. It was introduced on April 1, 1970. 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 wasn't far behind, with more than 670,000 sold from 1970-78.

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. AMC played on the lack of recognition of the name by using the advertising line "What's a Matador?" 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.

The AMC Pacer, introduced in 1975, was an innovative gamble and another well-intentioned entry into the market AMC seemed to know best. 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 Automobile emissions control would have been met by the use of the Wankel engine type engine whose exterior compactness allowed for extensive engine bay emission control equipment. The second, increases in U.S. passenger Car 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. 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 eliminating 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 Corporation-built Wankel rotary engine for the Pacer. 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. Thus, AMC was stuck with a car that had no engine. They had to shoe-horn their own existing 232 and 258 in³ (4.2 L) AMC Straight-6 engines into the Pacer instead. 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 US-produced 121 in³ (2.0 L) 4 cylinder Volkswagen designed Audi engine which AMC produced for a short period under the AMC name (see below under engines). However, the cost of the engine was high, so AMC - in a curious move - left the cheaper-to-build 232 in³ 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 AMC AMX nameplate. Little more than a sports appearance package offered on the AMC Hornet hatchback, it came standard with AMC's 258 in³ inline-6 mated to either a 4-speed manual transmission or 3-speed automatic. The AMC 304 in³ 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 automobile platform was redesigned and renamed the AMC Concord. 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 in³ V8 engine from the options list - leaving only the 258 in³ Inline-6 (standard on coupes and sedans) and the 360 in³ 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/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 AMC Spirit sedan replaced the Gremlin. An ingenious redesign of the rear panels created a fastback version of the car, which AMC dubbed the Spirit liftback. 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 1979, for the 1980 season.

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, 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. 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 http://www.time.com/time/magazine/article/0,9171,948087,00.html?promoid=googlep | Time Magazine, April 10, 1978. Retrieved on July 29, 2007. struck between the two companies - began to appear in dealer showrooms: the LeCar.

1979 was a good year for AMC, but there were long-avoided problems in the company's history that would catch up again by the end of the year. AMC's problems were compounded by an economic slump at midyear initiated by soaring energy prices. The downturn was accompanied by automobile plants shutting down and domestic unemployment rising. These twin factors depressed Jeep's sales and therefore the company's cash flow. At the same time, pressure increased on the car lines due to large numbers of American buyers turning to imported cars.

Early 1980s and Renault links The problems The facelifts and rebranding of the company's aging line of cars was not a permanent fix, in spite of the initial sales success of its innovative models and marketing strategies. American Motors desperately needed truly new, modern products, but lacked the capital and resources to develop them. At the same time, the competitive landscape had dramatically changed. No longer was the threat limited to the Big Three automobile manufacturers automakers (General Motors, Ford, and Chrysler); it was now the Japanese demonstrating how to produce automobiles. The Japanese competitors not only targeted the heart of AMC's passenger product line of small cars, but also relied on outsourcing and Just In Time (business) (JIT) supply chain for parts and components to their efficient brand new assembly plants now located in the United States. On the other hand, AMC struggled with its inefficient and aging Kenosha facilities. This was the oldest continuously operating automobile plant in the world, and production there required moving components and unfinished bodies across the city of Kenosha, Wisconsin.

The solution The only alternative was to seek a partner to invest in the business. In 1979, AMC found a ready investor in the French automaker Renault. Under the terms of the American Motors-Renault alliance, the French company purchased a 5% interest in American Motors and provided US$135 million in the form of a loan to help shore up the business. In exchange, American Motors would act as the North American importer and distributor of Renault products, which would be sold through the existing AMC-Jeep dealer network. This was not the first time the two companies worked together. Lacking its own line of prestige models in the early 1960s, Renault assembled Complete knock down kits and marketed Rambler cars in France.

In January 1982, Paul Tippett assumed the CEO's job and Jose Dedeurwaerder, a Renault executive, became the new president. The changes in top management came at a time when the domestic economy was sinking, forcing AMC into the worst of times. It even had to persuade its dealers just to stay open. Dedeurwaerder brought AMC a broad perspective at a critical time. As an engineer and an international business executive with 23 years at Renault, he is credited with streamlining many of AMC's arcane management techniques. Dedeurwaerder also instituted important improvements in plant layouts, as well as cost and quality control.Thomas Derdak, Editor (1988). International Directory of Company History, Volume 1. St. James Press. ISBN 0-912289-10-4. page 136. A new line of Renault-designed, modern front-wheel drive cars would be produced by American Motors at their Kenosha plant.

Alliance results The first new product resulting from this partnership was the 1983 Renault Alliance. This was a front-wheel drive compact 4-door sedan was designed in France and adapted to American standards, that also added a 2-door version for North America. The Alliance won Motor Trend Car of the Year and other awards as its introduction coincided with an increased interest in small cars. A virtually identical hatchback version was also produced, badged as the Renault 9/11. Due to the ever-worsening financial situation at American Motors, Renault was forced to increase their stake in the company several times to keep it solvent, reaching a 49% ownership in 1983. AMC's ownership by Renault ended its run as a truly American car company.

Following the 1983 model year, the AMC brand was pared down to a single model - the four wheel drive Eagle line. From that point on, the focus of the company would be on the Renault and Jeep brands. Introduced in 1980, the AMC Eagle was a four-wheel drive car consisting of a Concord body shell mounted on an all-new platform developed by American Motors engineers during the late 1970s. The Eagle become one of AMC's best-known products and is considered to be one of the first "crossover SUVs". Under its familiar body, the Eagle featured some truly revolutionary engineering with its full-time all wheel drive system. Not surprisingly, most Eagles were sold in snow-prone areas. Per AMC tradition, sales were strong for the first year or two, then tapered off dramatically. Whatever the Eagle's merits, it may be that customers had simply grown tired of the styling, which dated back to the 1970 Hornet.

Jeep benefits More significant for the future of AMC was the introduction of a completely new line of compact Jeep Cherokee and Jeep Wagoneer models in 1983. These downsized Jeep vehicles quickly became popular and established a new market segment,defining the modern SUV. These vehicles initially used the AMC 2.5 L OHV four-cylinder engine with a carburetor and optionally a General Motors-built 2.8 L, carbureted V6. After 1986, throttle-body injection replaced the carburetor on the 2.5 L I4 engines. A Renault 2.1 L Turbo-Diesel I4 diesel was also offered. 1987 models used the "new" 4.0 L (242 in³) I6 engine, derived from the older 4.2 L (258 in³) I6 with a new head design and an electronic fuel injection system designed with help from Renault, utilizing Renault-Bendix (Renix) parts.

One older design was kept - the Grand Wagoneer full-size luxury SUV and the related J-Series pickups continued to be built on the same chassis as the earlier SJ model Wagoneers and Cherokees that dated from 1963, with the AMC 360 in³ V8 (the engine and the Grand Wagoneer ceased production after 1991; the pickups were dropped after 1987). The AMC Concord and Spirit were dropped after 1983, with no replacements. The AMC Eagle was continued, and in station wagon form lasted into the 1988 model year. The final 1988 Eagle 4 wheel-drive wagon was built on December 14, 1987

1985 and the final buyout Changes in the marketplace 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 newsmagazine exposé of rollover tendencies under extreme conditions. 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 (the Chrysler 5th Avenue, Dodge Diplomat and Plymouth Gran Fury) and reached an agreement with AMC to use some of Kenosha's idle plant capacity.

Changes in management 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. The Pentagon had problems with AM General, a significant defense contractor. AMC's military equipment division was actually now managed by a partially French government owned firm. 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 Richard A. Teague, AMC's design vice president for 26 years. He was responsible for some of AMC's timelessly beautiful and advanced vehicles, as well as for some of its disappointments.

Problems at Renault American Motors' major stockholder, Renault, itself was experiencing financial troubles of its own in France. 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. Renault was down to just three alternatives regarding its American holdings: (1) They could declare AMC officially Bankruptcy 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. Against these detractions, Renault's chairman, Georges Besse, continued to champion the French firm's future in the North America 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 4.0-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.

The assassination Nevertheless, external events took a dismal cast for AMC. Apparently a target because of his high standing among French capitalists, Georges Besse was assassinated on November 17, 1986. A terrorist Maoist organization, Action Directe, later claimed his murder was retaliation for Besse's reorganization of the struggling firm. This tragedy allowed other Renault executives to push the parent company to sell AMC. The company's new president set out to repair employee relations and divest their investment in American Motors.

The earlier arrangement between Chrysler and AMC that led to AMC producing Chrysler's Dodge Diplomat, Plymouth Gran Fury and Chrysler Fifth Avenue cars became grist for the rumor mill that suggested Chrysler was about to buy AMC. In March 1987, after much discussion and several transatlantic meetings, Chrysler agreed to buy Renault's share and all of the remaining shares in AMC for US$1.1 billion. AMC became the Jeep/Eagle division of Chrysler. The strategy of Chrysler CEO, Lee Iacocca, was for his company (now flush with money) to capture the Jeep brand. It is rumored that the reason Iacocca wanted to acquire the Jeep brand was for the Jeep Grand Cherokee that was under development. The vehicle became an extremely profitable model for Chrysler, and the nameplate remains in production today. Moreover, he also recognized AMC's recently modernized factories were an opportunity for increasing his company's Capacity utilization. AMC's persevering dealer organization was an additional benefit to Chrysler in strengthening their retail distribution, with a large number of dealers who once sold AMC products selling Chrysler products yet today, nearly 20 years since the buyout. Moreover, Chrysler quickly incorporated AMC's underrated organization and management talent. Many of the new leading Chrysler engineers and executives rose from AMC ranks. Chrysler profited from the resources it gained with the acquisition of AMC.

The sale of American Motors came at an ironic time since the automotive press was very enthusiastic about the proposed 1988 lineup of Renault and Jeep vehicles, some even speculating AMC/Renault finally had a winning hand that could turn the company around.

After the sale of AMC, Renault departed from the North American market. However, it now has a vicarious presence through its investment in Nissan.

Continuing business legacy 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 Strategic management.

Innovative strategies American Motors' ability to formulate strategies were often evaluated by industry critics as "strokes of brilliance".Higgins, James V., "Roy Chapin Jr. mastered how to survive in auto industry". The Detroit News, August 12, 2001 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. An essential strategy practiced by AMC was to rely on Outsourcing to supply components in which they had Sustainable competitive advantage. 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. 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 competency helped save the company from collapse and after each obstacle, give it the wherewithal to keep it operating. Ironically, AMC was never stronger than just before its demise.

Anticipate trends AMC's managers anticipated important trends in the automotive industry. 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.Fracassa, Hawke. "Roy D. Chapin Jr., ex-AMC chairman gambled to save Jeep". The Detroit News. August 7, 2001

Reviving Chrysler According to Robert Lutz, former President of Chrysler, the AMC acquisition was a big and risky undertaking.Lutz, Robert A. (1999). Guts: The Seven Laws of Business That Made Chrysler the World's Hottest Car Company. John Wiley & Sons. ISBN 0-471-35765-0. 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.Lutz, Robert A. (1999), p. 16 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".Lutz, Robert A. (1999), p. 31 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".Lutz, Robert A. (1999), p. 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".Lutz, Robert A. (1999), p. 33 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. In an unthinkable strategic move, Castaing completely dismantled the entrenched Chrysler groups. In their place AMC's "Automobile platform" were 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 by Lutz's view only dramatic action was going to change that.Lutz, Robert A. (1999), p. 33 In summary, Chrysler's purchase of AMC laid the critical foundation to help re-establish a strategy for its revival in the 1990s.

Lessons learned 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 Automobile platform. 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. 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.Taylor III, Alex. "Finally GM is looking good". Fortune, Vol. 145, Nr. 7, 2002, pp. 69-74

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.

Legacy of products Passenger automobiles Chrysler revived the "Spirit" name dropped by AMC after 1983 for use on one of its Chrysler A platform cars, (the Dodge Spirit) from 1989 to 1995. The planned Renault Medallion was sold as the Eagle Medallion in 1988 and 1989. A Renault/AMC concept, the Summit (slated to replace the Eagle station wagon), was produced by Mitsubishi Motors beginning in 1989. 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. The Full-size car 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 (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 300M was likewise a Premier/LH-derived car and was initially to have been the next-generation Eagle Vision, until the Eagle (automobile) brand was dropped after 1998.

Jeep vehicles 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 is still produced in China as the Cherokee 2500). Although it was not introduced until 1993, the Jeep Grand Cherokee was initially an AMC-developed vehicle. 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. The 4.0 L engine was used until the 2006 model year by DaimlerChrysler in the Jeep Wrangler. AMC's technologically advanced Bramalea Assembly and Stamping Plants in Brampton, Ontario now produce the best-selling Chrysler LX platform - the Dodge Charger (LX), Dodge Magnum, and the Chrysler 300.

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.

Collectibility As numbers dwindle and prices for popular collector cars continue to rise, more collectors are turning to AMC vehicles. The "collector" 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 a small but enthusiastic following, and their prices are rising with the increasing interest. Many AMC models are now considered "future collectibles" and often appear on bargain lists in American collector car magazines.

Epilogue 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

 

American Motors



 
Copyright © 2008 Hintcenter.com - All rights reserved.
Home | Terms of Use | Privacy Policy
All Trademarks belong to their repective owners. Many aspects of this page are used under
commercial commons license from Yahoo!