|
In the early 1900's, automobile manufacturing was a growing
business. Independent automakers such as Auburn, Hudson, Nash, and
Studebaker served a focused market, catering to small car drivers, not
covered by the "Big Three" makers: Ford, General Motors, and Chrysler.
Many of these independent automakers saw their last days during the
Great Depression. After World War II, there was just a handful left.
American Motors was formed by the merger of two of these independents:
Nash and Hudson. Nash President George Mason and Vice President George
Romney saw the inevitable, to survive, the independents had to merge.
Mason first talked to Packard who could not agree to a merger. After
Mason tired of Packard's reluctance to join, he approached his second
choice, Hudson. Hudson President, A.E. Barrit saw that Hudson was
quickly losing money and decided that a merger would be the best course
of action.
On May 1, 1954, Nash and Hudson joined, forming American Motors. (Foster
11) Mason was named chairman of the board, president, chief executive
officer, and general manager. His assistant George Romney was named vice
president, and Barrit became a director of the company. For the first
year of production, all of the old Hudsons were dropped, either for
being dated or just not doing well in the market. The all-new Hudsons
were based on existing Nash bodies with design features to keep them
different. All Hudson production was also moved out of Detroit into
Nash's main plant at Kenosha, Wisconsin. In October, six months after
the merger, Mason fell ill and unexpectedly died. The next day, Romney
assumed all of his titles and responsibilities.
At the end of 1955, American Motors closed its West Coast plant at El
Segundo, California, and moved all production to Kenosha. This move
increased production, but still ended the year with a loss of $6.9
million. (Foster 18) The 1956 model year brought out a new car, The
Rambler. This was not a new name, but the car came out with no mention
of Nash or Hudson. The press raved the new Rambler with its improved
power, larger interior, and smoother steering. The rest of the American
Motors line however, still carried the dated styles of 1952.
With the loss in 1955, AMC could only retool the Rambler and give the
others minor facelifts. For most, the results of 1956 were not
encouraging, with a loss of $19.7 million. Romney however, saw things
differently. He noted that part of the loss, nearly $8 million was
non-recurring expenses, and anticipated a reduction in expenses of $7.8
million in 1957. (Foster 25) Late in the 1956 model year, AMC introduced
their first V-8, the 327 cid, and was featured in a limited production
high-performance Rambler Rebel for 1957. With the new engine and new
car, Romney ended 1956 full of hope for the company. He noted that an
increase of just 30,000 units would turn a profit for 1957. A year later
though, American Motors turned out a net loss of more than $10 million.
The reduction in sales was due to the senior lines, but Rambler sales
were up. In fact Rambler had its two best sales months ever in May and
June. In 1958, head designer Ed Anderson reskinned the Rambler. He gave
it flatter fenders and fender mounted quad headlights, a very popular
feature in 1958. Also in 1958, the Nash and Hudson lines were dropped,
leaving the dealers with the Rambler, which was earning quite a
reputation on its own.
The lineup for 1958 included the six cylinder Rambler, the toned down
250 cid V-8 Rambler Rebel, the "Ambassador by Rambler", the "new"
Rambler American, which was the old 100-inch wheelbase Rambler slightly
restyled, and the Metropolitan, a low-investment import with little
change for 58. The 1958 model year ended in the black, the first time
AMC had ever shown a full year of profit. There was a profit of just
over $26 million and because of losses from the previous year, it was
tax-free. Because of the recession, Americans were turning to the
smaller, more economical Ramblers.
For 1959, styles remained basically the same with some added options and
trim. Again, a profit was turned of over $60 million, the second year
straight in the black. A slight re-skinning was done for 1960 on the
Rambler and the Ambassador to keep the style fresh. AMC ended 1960 with
over $48 million in profit and over $1 billion in sales, the first time
ever. Romney was quite pleased with the Rambler. It was having the
fourth year in a row of sales increases, so he decided to do what most
considered impossible. Romney wanted Rambler to get a spot in the
"low-priced three": Chevy, Ford, and Plymouth. This would take a lot of
work, but with the way things were going, he knew AMC could do it.
For 1961, plans were made to assemble Ramblers in Canada again.
Contracts were also signed to begin assembly in Australia and Malta.
These worldwide factories were beginning to contribute quite a bit to
company profits. The American got a facelift for 1961, but kept the same
interior and inner body panels to save costs. The Ambassador got a very
different front end, and kept the rest of the body more or less the
same. Also in 1961, AMC and Industrias Kaiser Argentina signed an
agreement to allow the assembly of Ramblers by IKA for Latin America.
Even though AMC finally reached third place in 1961, it was still an off
year with sales dropping below the billion-dollar mark. Net profits and
the employee count also dropped. Working capital did however go up by $7
million. (Foster 68)
For 1962, the Ambassador as it was known was dropped, and was put on the
smaller Rambler Classic wheelbase. The two cars were basically the same,
so the Classic was only offered with a six cylinder and the Ambassador
had the V-8. The "Ambassador by Rambler" also became the Rambler
Ambassador. Rambler stayed in third place for 1962 even though the
styling was a carryover and the rest of the market was improved. This
was partly because of the new foreign operations. In December of 1961 Ed
Anderson, the man who put AMC in third place in industry sales,
resigned. Anderson was tired of being in the engineering department. For
years he wanted to be promoted to Vice President of Styling, but was
told that if he was unhappy he should resign, so that's just what he
did. Then, in February of 1962, George Romney asked for a leave of
absence to run for Governor of Michigan. Roy Abernathy was then promoted
to president and chief executive officer, and Richard Cross was named
chairman of the board. Richard Teague was also named director of
styling.
The entire Rambler line, minus the Metropolitan, was restyled for 1963.
The new designs included curved side windows, smaller wheels, and
different door handles. These were just a few of the new touches. The
entire lineup was named Motor Trend's "Car of the Year". The 1964 line
of cars was the strongest ever, with a slight redesign of the Ambassador
and a completely new American. AMC continued to make money during 1964,
but was getting more competition in the compact and mid-size markets by
Ford and GM. At the end of the 1964 fiscal year, sales had dropped
though not much. This drop was credited to a poor mix of models, selling
too many low priced cars and not enough hi priced ones. Abernathy wanted
to change AMC's image. He wanted to compete with the "Big Three", so for
1965 the cars started getting bigger, more powerful, and came with more
options. In February, AMC came out with an all-new fastback, in response
to the Ford Mustang, called the Marlin. It sold poorly, with just over
10,000 units. It was no competition. What people wanted was something
more compact.
American Motors continued to move into the higher price ranges in 1966,
by dropping the Rambler name from the Ambassador and Marlin, and adding
more options, such as cruise control and even throw pillows to match the
seat covers. The Classic featured minor changes, and the American got a
facelift. A new V-8, the 290 cid was also brought out that year. It was
put in the American to create the Rambler Rogue, a sporty compact, which
was better trimmed and carried more standard equipment. The 1966 models
sold very poorly in the market. Partly because of design and partly
because of something much worse, rumors. Abernathy was spending so much
money, that it was becoming hard to turn a profit. This started people
talking. They were talking about AMC with words like struggling,
financially ailing, and strapped. The list goes on. This talk started to
achieve a snowball effect on the company. By the end of the year, to the
public, American Motors was a loser.
For the 1967 model year, the cars were slightly restyled with one major
change being that the Classic was dropped and replaced by the Rambler
Rebel. In Jan. of that year, Abernathy was forced to retire, and William
Luneburg was named president and CEO, and Roy Chapin Jr. became chairman
of the board. The 1968 model year looked grim, but with a new management
team, many felt more assured. A new car came out to replace the Marlin,
a smaller car to compete more with the Mustang. It was called the
Javelin. It was compact, sporty, and appealed to the younger crowd. A
smaller version was also produced called the AMX. It was basically a
shorter two seat Javelin. The Rebel, Ambassador, and American were all
back again, this time the American being the only one with the Rambler
nameplate. The two-door sedan was dropped from all models except the
American, and the Rebel was the only convertible model available.
There was little profit in 1968, but at least there was a profit. The
Rebel, Javelin, and AMX were all carryover models, with changes in
equipment and trim for 1969. The American was renamed the "Rambler". The
Ambassador was redesigned as the biggest Ambassador ever, on its
122-inch wheelbase. Halfway through the model year, a limited production
car was made by stuffing a 390 cid V-8 into the small Rambler. It was
given performance parts, painted white with red and blue accents, given
sport wheels and fat tires, and christened the SC/Rambler. It was only
planned to make 500, but interest was so high that 1,512 were made.
(Foster 139) Often referred to as SCs, Hurst Ramblers, or Scrambler
Ramblers, this car became what could be argued as one of the most
collectable cars of the 1960's. On June 30, 1969, the last Rambler ever
made in America came off of the assembly line at the Kenosha plant. The
Rambler name lived from 1950 to 1969, and 4,204,925 Ramblers were built
in this period. (Foster 140-1)
The new decade of the 1970's brought new cars with it. The Hornet, a
small car designed to compete with the compact cars of the day. It
shared stampings on roof of the two and four door models and the front
and rear bumpers were interchangeable. The next new car for 1970 came
out on April 1, 1970, April Fool's Day. This car was the first
American-built subcompact. It was dubbed the "Gremlin". The wheelbase
was only 96 inches long, and it had a funny sharp sloping hatchback,
called the Kammback. The Gremlin was basically a Hornet chopped off
behind the rear wheels. It was marketed for the younger crowd. Another
change for 1970 was the logo. Before, it had been a script of the
initials, AM. The new logo was a rectangle with a stylized A, and was
red white and blue. The rest of the line received little change. The
Rebel and the Ambassador got new rear quarter panels. The Javelin and
AMX got a new sportier hood and grill. The biggest news for 1970 came in
February when AMC purchased Kaiser Jeep for $10 million.
This was quite a bit, especially on a money-losing corporation. This may
have seemed like a bad move, but Roy Chapin knew it had potential, and
AMC needed a truck. In 1971, AMC came out with a new slogan, "If you had
to compete with GM, Ford, and Chrysler, what would you do?" The
brochures and TV ads provided the answer, actually a separate answer for
each line of cars. The Hornet came out with two new models, the
Sportabout, a compact station wagon and the SC/360, a high performance
Hornet, based on the success of the SC/Rambler, with a 360 cid V-8,
styled wheels, and side stripes. The Gremlin also had a new line, the X
package. This included bucket seats, carpeting, slotted wheels, side
stripes, wide tires, and a painted grill. The biggest news of the year
however, was the new Javelin. It was wider and longer than the original,
but wasn't much heavier.
The AMX came as a trim package on the Javelin instead of a separate car.
The Rebel was replaced by the Matador, which was basically just a
facelift of the 1970 Rebel. The Ambassador was a carryover with a
different grill and different trim. Jeeps were fine-tuned, and their
engines were replaced by AMC engines. The Jeep assembly line was
streamlined and Jeeps were distributed to AMC dealers to improve the
Jeep dealer body. The General Products division became its own
subsidiary, AM General, which was in charge of production and sales of
all military and postal vehicles. The Javelin didn't sell well, and
neither did the Hornet Sedan or Matador, but the Sportabout and Gremlin
both had potential.
Most of the changes in 1972 were internal. The Borg-Warner transmission
was dropped and was replaced by a smoother shifting Chrysler unit. Door
hardware, radios, and quality standards were all improved. All stripped
down models were dropped, and most cars were given better interior trim.
The Javelin got a new grill, and the Gremlin had the option of the 304
cid V-8 engine. The SC/360 Hornet was dropped, and Rallye and X packages
were added to the Hornet line. AMC also came out with the "Buyer
Protection Program", a warranty/guarantee to new car buyers. These
improvements must have worked as sales and profits both increased in the
model year.
The only new car in 1973 was the Hornet hatchback. This was a fairly new
concept and AMC pulled it off nicely. The Gremlin received the Levi's
interior, which consisted of Levi's blue denim on the bucket seats and
door panels. The Sportabout also got a new interior by fashion designer
Aldo Gucci. The seats and door panels wore Gucci's trademark green and
red stripes on a beige background. Javelin was a carryover again with
very little change. It, however also got a stylish new interior designed
by Pierre Cardin. A Trans-Am Victory Javelin was also offered to
celebrate its victory in the Trans-Am racing series. Ambassador and
Matador got slightly redesigned grills but not much else. Jeep pickups
got new pickup boxes and tailgates, dashboards, and a new four-
wheel-drive system called Quadra-Trac, a full time system. Jeep CJ and
Commando also got slight upgrades. Profits were up again, and things
kept looking better.
The new car for 1974 was the Matador coupe. It was nothing like any
previous Matador. Like the Gremlin and Hornet, it had the X package,
which included the 304 cid V-8. The styling, however, was odd. There
were deeply tunneled headlights, a plain grill, a long hood, and a
fastback. Some thought it looked like an updated Marlin. The other
Matadors and the Ambassador received a new grill and a hood that was
longer in the middle and tapered back to meet the fenders. The Gremlin
got new bumpers and a new grill. The Hornet and Javelin also received
very little change. The Ambassador got the same new hood as the Matador,
but a better-looking grill and quad headlights. The new Cherokee, which
was actually just a two-door Wagoneer, came out for the 1974 season. The
Wagoneer got a new grill and was moved further upscale so it wouldn't
compete directly with the Cherokee. Car sales went up in 1974, but
earnings were very little, partly due to the tooling of the Matador coup
and the fact that it didn't sell well.
In 1975, AMC came out with yet another totally new car, the Pacer. It
was small, wide, and its design was something no one had ever seen. It
had rounded styling and a lot of glass. The Pacer was originally
designed to have a rotary engine, which AMC was to purchase from General
Motors, but GM bailed out at the last minute. AMC then had to widen the
car and shoehorn the 232 cid six cylinder into it. The rest of the line
in 1975 was carryover. The Matador sedan and station wagon got a new
grill. The Hornet, Gremlin, and Matador coupe remained basically the
same, with a few more options. One big change to the line was the
absence of the Ambassador and Javelin. Big car sales would now be
focused on the Matador, and the Javelin hadn't sold well anyway, so few
missed it.
Every car for the 1976 model year was a carry-over from the year before.
None came with much new besides a grill or options. Jeep, however,
introduced a new model, the CJ-7. It had a ten-inch longer wheelbase
than the CJ-5, which gave engineers enough room to fit an automatic
transmission in it. Quadra-Trac full-time four-wheel-drive and a
fiberglass hard top were also newly available for the CJ-7. Losses in
1976 totaled over $46 million, which came right after a $27.5 million
loss in 1975, not a good combination.
In 1977 there were a few improvements, but again the line was basically
a carryover. The Gremlin got a new front end. It also"had a new Custom
model which included a four-cylinder engine. The four-cylinder was long
overdue, and without time to develop its own, AMC purchased the entire
design from Audi in Germany. The Pacer got a wagon and the Hornet got an
AMX model, which was a just a dressed up hatchback. Jeep was doing
great. The Cherokee got a four-door, which was a younger sportier
Wagoneer. The Wagoneer was doing exceptional in the luxury
four-wheel-drive station wagon market, being the only vehicle in that
market. William Luneburg, president of American Motors retired in May of
1970 and was replaced by Gerald C. Meyers. Ian Anderson was elected
executive vice president and chief financial and administrative officer.
In November, it was announced that in Egypt, a joint venture plant would
build Jeeps for the Arab market. AMC owned 49 percent of this new plant
which had the capacity to build 12,000 Jeeps per year from American made
parts. All divisions of AMC operated at a profit for 1977 except for
Automotive Operations, which lost $1.2 million, and that was after cars
and Jeeps were listed together.
In 1978, the Hornet became a new car. It got a facelift and was moved up
market a bit. With new options, a new look, new suspension, and a luxury
image, the powers at AMC decided to change one more thing, the name. The
Hornet was renamed the Concord for 1978 to give it a more luxurious
sound. The Hornet name had also lost most of the respect it once had by
then. The Matador coupe and sedan returned again, with very little
change. The Pacer got a V-8 option to help pull the excess weight of it.
To fit the bigger engine under the hood, it had to be raised. Along with
the new hood, the Pacer also got a new, "Mercedes style" grill. The
gremlin had very little change in 1978. One addition was the GT package,
which was introduced mid-year. It included fiberglass flares and
graphics. This wasn't what it needed though. The Gremlin, along with the
other cars at AMC needed a new look. This unfortunately would never
happen. There was also a new AMX in 1978, based on the Concord, that was
flashier than before and most didn't care for it. Jeep sales did very
well. So well, in fact, that there were problems at the factory with
quality control, which was lost in the rush to build more Jeeps.
Executives, again, were replaced in 1978. W. Paul Tippet was named
president, and Wilson Sick Jr. became group vice president of finance
and administration. James L. Tolley was named vice president of public
relations.
The Gremlin was no more in 1979, but there was a new car, the Spirit,
which came in a liftback and a sedan. Both were a Gremlin with a
restyled roof, grill, and back panel. The sedan was basically a longer
Gremlin with redesigned side windows and grill. The Pacer and Concord
were back with minor changes and there was a new AMX, based on the
Spirit liftback. The entire Matador line was gone, but few missed it,
especially the coupe. Senior Jeeps got a new front end and the Cherokee
line got several dress-up models. The CJ also got a Silver Anniversary
to celebrate its 25th year of production. The Concord also got a Silver
Anniversary edition, to celebrate 25 years of AMC. Both were painted
silver with special seat trip and badges. Renault, a French car company
bought into AMC in early 1979. The two manufacturers signed an agreement
for AMC to sell Renault cars in their American and Canadian dealerships.
In 1979, Jeep sales edged out car sales for the fiscal year, by just a
handful. When the fiscal year ended, AMC had made a profit, in fact it
was the second best in the companies history.
The Jeep line in 1980 needed better fuel economy, so part-time
four-wheel-drive was made standard and Quadra-Trac was optional. The GM
2.5 liter four-cylinder, which was purchased in 1979 was also made
standard equipment, along with a four-speed transmission. Emphasis was
placed on the six-cylinder for the Cherokee, and both models were given
a Laredo package to lure buyers into the showroom. A new
four-wheel-drive car, which was really just a four-wheel-drive Concord,
was introduced in 1980. It was called the Eagle. The Eagle came in a two
or four-door sedan or a station wagon. It had a full-time
four-wheel-drive system which sensed when one wheel was loosing traction
and directed more power to that axle. This was suitable for light-duty
off-road driving, but nothing that would need a low range gear. The
Concord got some slight styling changes, but the Spirit and Pacer were
left the same as emphasis was placed on the new Eagle. The Eagle did
wonderfully, and the other cars did OK, but AMC suffered a tremendous
loss. This was partly because of the recession/inflation that was taking
place. AMC wasn't the only company that suffered losses in 1980. Even
the Big Three reported losses.
In 1981, Jeeps continued to improve on fuel economy, and a new pickup,
based on the CJ, was introduced. The Scrambler gave AMC an introduction
in the compact pickup market. It didn't come in a two-wheel-drive
version, but still sold well. Cherokee sales suffered as they were high
margin/high volume vehicles. The Pacer and AMX were dropped, but two new
Eagles were introduced, the SX/4 and the Kammback. The SX/4 was
basically a four-wheel-drive Spirit liftback, and the Kammback was a
four-wheel-drive Spirit sedan. A new four-wheel- drive system was
introduced in 1981, called Select-Drive. It allowed the driver to
disconnect full time four-wheel-drive and just run in two-wheel-drive to
increase gas mileage.
In 1982, Renault owned 46 percent of American Motors, and Renault
executive Jose J. Dedeurwaerder became president of AMC. All cars in the
1982 line were carryovers, but with higher gas mileage, the Buyer
Protection Plan, Ziebart Factory Rust Protection, and a 100 percent
galvanized steel body, AMC cars were a great value.
For 1983, AMC was selling the Renault LeCar, Fuego, and the new Alliance
as AMC/Renault's. They were also tooling their own 2.5 liter
four-cylinder, that would be entirely designed and built by AMC. The
Alliance had front-wheel-drive, fuel injection, and power-assisted front
disc brakes, standard. The Spirit sedan and liftback were dropped, and
the D/L and GT were offered as separate models. Concord two-doors were
also dropped. The Eagle line lost the Kammback and the two-door sedan.
The rest was carryover. All of AMC's subsidiary companies were sold, and
AMC was on it's own to make money.
The first all-new Jeep since 1963 came out for the 1984 model year. It
was called the Cherokee. The new Cherokee was smaller, lighter, and
given a new suspension system, Quadra-Link, which was solid but still
gave a smooth ride. The CJ-5 was dropped, but hadn't sold well because
the CJ-7 was similar but handled better. The Eagle SX/4, the Spirit, and
the Concord were also dropped. The Eagle sedan and wagon, along with the
rest of the Jeeps were all carryover. The Alliance was back along with a
hatchback version called the Encore. In August of 1984, Dick Teague, the
man who designed the revolutionary Hornet, Gremlin, Concord, and Eagle,
along with the not so great, Matador coupe, Marlin, and Pacer, announced
his retirement from AMC. China and AMC made a deal where the two would
jointly build Jeeps for the Chinese, and later the Asian, market. The
company, Beijing Jeep, would build the new Cherokee from kits, and also
a Chinese version of the CJ. For the first time since 1979, AMC turned a
profit, just barely, but it provided hope for the future. The Cherokee
got an optional shift-on-the-fly four-wheel-drive system and a 2.1 liter
Renault-built turbo-diesel. The Eagle was also given the shift-
on-the-fly option and a new hood and grill. Renault sales started to
sink, as did Eagle sales. Rumors started to circulate about Renault
wanting to sell its share of AMC. They had lost over a billion dollars.
There were labor disputes in Kenosha and at the Toledo Jeep plant, where
Jeeps were being sabotaged. Things weren't going good.
In 1985, AMC lost even more money. The Alliance and Encore got a new
grill in 1986, and the Eagle was hardly changed. Jeep brought out a new
pickup, based on the Cherokee, called the Comanche. It was offered in
either two or four-wheel-drive. CJ-7 production ended early in 1986, so
the Brampton plant could be retooled for it's replacement, the Wrangler.
Wrangler was basically a CJ with square headlights, a more carlike
interior, better suspension, and a sturdier roll cage. Halfway through
1986, Dedeurwaerder was replaced as president by Joseph Cappy. Car sales
were terrible, but losses weren't as bad as they could have been. Also
halfway through 1986, AMC started manufacturing Chrysler automobiles in
the Kenosha plant. This was strange, but it was a way for the company to
make money. The Eagle was back in 1987, with no mention of AMC. The
Comanche and Cherokee got the new 4.0 liter in-line six-cylinder, which
was based on the old AMC six. It was also decided that most Renault
products would be built in Europe, as they couldn't afford to retool for
production in America.
In March of 1987, the news broke. Chrysler Corp. was going to buy AMC.
This was strange though. AMC was sure to make a profit in 1987, and
Renault was bailing out. Chrysler bought AMC for $1.1 billion, and
agreed to buy Renault parts for five years for use in the new Premier.
In its final year of existence, car sales were not good. There were less
than 25,000 Alliances sold, 4,564 Eagles, and only 192 Premiers.
AMC/Jeep and Renault total wholesale numbers for 1987 were mixed in with
Chrysler figures though.(Foster 291) By fall, AMC was renamed the
Jeep/Eagle Division of Chrysler Corp. The Eagle station Wagon continued
production for the 1988 model year, with more standard equipment, to
help get rid of existing stock. The Renault Medallion was renamed the
Eagle Medallion, and the same was done with the Premier. The Jeep
pickups, which had been in first shown in 1963 were dropped. Production
for the Eagle ended on Dec. 14, 1987. This was the last car made by the
last independent.
—————————————————————————————————
Works Cited Foster, Patrick R. American Motors: The Last Independent.
Iola, WI: Krause, 1993. Georgano, Nick. The American Automobile, a
Centenary 1893-1993. New York: Smithmark, 1992. Jennings, Jan. Roadside
America: The Automobile in Design and Culture. Ames, IA: Iowa State
University Press. Mann, Jim. Beijing Jeep. New York: Simon and Schuster,
1989. Rosa, John. The Javelin Homepages. Internet, http://www.javelinamx.com
5 April 1998. Sears, Stepphen W. The Automobile in America. New York:
American Heritage, 1977. Stone, Jim. The AMX Files. Internet, http://www.amxfiles.com,
5 April 1998.
|
