American Motors Corporation

For a time, both the Hornet and Gremlin could be ordered with Levi's denim interiors.

Matador

The new facelifted, mid-sized AMC Matador replaced the Rebel in 1971, using an advertising campaign that asked, "What's a Matador?" In 1972, American Motors won the tender for Los Angeles Police Department cruisers, and Matadors were used by the department from 1972 until 1975, replacing the Plymouth Satellite. American Motors supplied Mark VII Limited owner Jack Webb with two Matadors, a sedan and a wagon, for use in his popular television series Adam-12, increasing the cars' public profile. Matadors saw fleet use as taxis, government, police, and fire vehicles in some states.

In 1973, American Motors signed a licensing agreement with Curtiss-Wright to build Wankel engines for cars and Jeeps.

Starting in 1974, the Matador sedan and station wagon were mildly refreshed, with new boxier front and rear ends, making it full-sized. This second-generation model was produced virtually unchanged until 1978.

Sagging sales and tight finances resulted in the discontinuation of the Matador line after the 1978 model leaving American Motors to focus almost exclusively on its Hornet platform-based cars and the Jeep line.

Ambassador

From 1970, the Rebel and Ambassador were identical from the A-pillar back. The Ambassador continued as AMC's upmarket model with higher trim, more equipment, and air conditioning as standard. From the A-pillar forward, the Ambassador was redesigned and stretched 7 inches (178 mm) to become the biggest ever, just as the 1973 Arab Oil Embargo sparked gasoline rationing across the nation. The additional length was due to a new front-end design and more substantial energy-absorbing bumpers required of all automobiles sold in the U.S. Sales of all large cars fell due to economic problems and rising gasoline prices. The Ambassador became a full-sized car in 1974 and was discontinued after the 1974 model year, leaving only the Matador as American Motors' full-size offering. Nash and American Motors made Ambassadors from 1927 through 1974, the longest use of the same model name for any American Motors product and, at the time, the longest continuously used nameplate in the industry.

Matador Coupe

In 1974, the first-generation Matador two-door hardtop, known as the "flying brick" due to its poor aerodynamics in NASCAR competition, was replaced with a sleek, smoothly shaped, and radically styled two-door coupe. The model received praise for its design, including "Best Styled Car of 1974" by Car and Driver magazine, customer satisfaction, and sold almost 100,000 coupes over five years. The Matador Coupe shared few components with the Matador sedan and station wagon other than suspension, drive train, some trim, and interior parts.

Metropolitan Buses

In 1974, American Motors's AM General subsidiary began building urban transit buses in cooperation with Flyer Industries of Winnipeg, Manitoba. A total of 5,431 Metropolitan buses, including 219 electric trolley buses, were built before production ceased in 1979. Production of diesel buses had ceased in 1978, with only trolley bus production taking place in 1979.

Pacer

The AMC Pacer, an innovative all-new model introduced in March 1975 and marketed as "the first wide small car", was a subcompact designed to provide the comfort of a full-sized car. Its pre-production development coincided with tightened U.S. federal passenger emissions and auto safety regulations. The Pacer sold well its first two years with 262,772 combined units sold in the US.

With the Arab Oil Embargo of 1973, General Motors aborted the Wankel rotary engine around which the Pacer had been designed, as its fuel consumption exceeded that of conventional engines with similar power. Therefore, American Motors's existing 258 and 232 cu in (4.2 and 3.8 L) AMC Straight-6 engines were used in the Pacer instead. The fuel economy was better than the expected rotary engine's, but the I6's gas mileage was relatively low in light of the new focus on energy efficiency. Also, as the Pacer shared few components other than the drivetrain with other American Motors cars, it was expensive to make, and the cost increased when sales fell steeply after the first two years. The Pacer line was discontinued in mid-1980.

Development and production costs for the Pacer and Matador Coupe drained capital that might otherwise have been invested in updating the more popular Hornet and Gremlin lines so that toward the end of the 1970s, the company faced the growing energy crisis with aged products that were uncompetitive in hotly contested markets. However, "AMC used cars, as far back as 1967, had the advantage of good warranty coverage... so most owners were conscious of low-cost car maintenance... AMC units became some of the very best buys on the used car market" by 1975.

The 1977 Gremlin had redesigned headlights, grille, rear hatch, and fascia. For economy in the fuel crisis, American Motors offered the car with a more fuel-efficient Volkswagen-designed Audi 4-cylinder engine 2.0 L (122 cu in). The engine was expensive for American Motors to build, and the Gremlin retained the less costly but less economical 232 cu in (3.8 L) as standard equipment.

The AMX nameplate was revived in 1977. It was a sporty appearance package on the Hornet hatchback featuring upgrades, as well as the 258 cu in (4.2 L) inline six as standard with a choice of three-speed automatic or four-speed manual transmissions. The 304 cu in (5.0 L) V8 engine was optional with the automatic transmission.

As all Matadors now received standard equipment that was formerly optional (e.g., power steering, automatic transmission), the "Brougham" package was dropped from 1977. Optional on the Matador coupe was a landau vinyl roof with opera windows, and top-line Barcelonas offered new two-tone paint.

Concord

For the 1978 model year, the Hornet platform was redesigned with an adaptation of the new Gremlin front-end design and renamed AMC Concord. American Motors targeted it at the emerging "premium compact" market segment, paying particular attention to ride and handling, standard equipment, trim, and interior luxury.

Gremlins borrowed the Concord instrument panel, a Hornet AMX-inspired GT sports appearance package, and a new striping treatment for X models.

The AMC Pacer hood was modified to clear a V8 engine, and a Sports package replaced the former X package. With falling sales of Matador Coupes, sedans, and wagons, their 304 cu in (5.0 L) V8 engine was dropped, leaving only the 258 cu in (4.2 L) Inline-6 (standard on coupes and sedans) and the 360 cu in (5.9 L) V8 (optional on coupes and sedans, standard on wagons). The two-tone Barcelona luxury package was offered on Matador sedans, and two-tone red paint was introduced as an additional Barcelona option. Matador production ceased at the end of the model year with total sales of 10,576 units. The Matador was no longer attractive as automakers struggled to overcome economic woes, including continuing fuel price increases and double-digit U. S. inflation.

Spirit

For the 1979 model year, the Spirit sedan replaced the Gremlin. A new fastback version of the car, the Spirit Liftback, proved successful.

In December, Pacer production ceased after a small run of 1980 models was built to use up parts stock.

Concords received a new front-end treatment, and in their final season, hatchbacks became available in DL trim. On May 1, 1979, American Motors marked the 25th anniversary of the Nash-Hudson merger with "Silver Anniversary" editions of the AMC Concord and Jeep CJ in two-tone silver (Jeeps then accounted for around 50 percent of the company's sales and most of their profits), and introduced the LeCar, a U.S. version of the small, fuel-efficient Renault 5, in dealer showrooms.

Concord and Spirit models were dropped after 1983.

1980s product developments

In 1980, all American Motors cars received a new rust-proofing process using Ziebart as Factory Rust Protection. The extra protection also included aluminized trim screws, plastic inner fender liners, and galvanized steel in every exterior body panel, along with the unibody getting a deep-dip (up to the window line) bath in epoxy-based primer. American Motors backed up the rust protection program with a 5-year "No Rust Thru" component to its comprehensive "Buyer Protection Plan."

AMC Eagle

In August 1979, for the 1980 model year, American Motors introduced four-wheel-drive versions of the Spirit and Concord, calling the collective line the AMC Eagle. Eagles rapidly became one of the company's best-known products and are considered one of the first "crossover SUVs". Eagles used the 2-wheel drive body shells mounted on an all-new platform developed by American Motors in the late 1970s. Featuring an innovative full-time four-wheel-drive system, it sold best in snow-prone areas. Sales started strongly but declined over time. While the two-wheel drive Spirit and Concord were discontinued after 1983 as the company concentrated on its new Renault Alliance, the Eagle survived for five years longer, albeit only in station wagon form, into the 1988 model year. This meant the four-wheel-drive Eagle was the lone representative of the American Motors brand from 1984 until the 1988 model year. All the company's remaining output was branded Renault or Jeep. The last AMC Eagle was built on December 14, 1987.

Renault Alliance, Encore, and GTA

The Renault Alliance was the first joint product of the American Motors-Renault partnership. Introduced in 1983, the Alliance was a front-wheel-drive Renault 9 compact car slightly restyled for the American market by Dick Teague, mainly to comply with American safety standards, and produced by American Motors at Kenosha. The car was badged as a Renault, and some cars also carried American Motors badges. It was available as a sedan with two or four doors and later as a convertible. The hatchback, introduced in 1984 and badged as the Renault Encore, was the same as the European Renault 11 model.

The new model, introduced during increased interest in small cars, won several awards, including Motor Trend Car of the Year. Motor Trend declared: "The Alliance may well be the best-assembled first-year car we've ever seen. Way to go Renault!" The Alliance was listed as number one on Car and Driver's list of ten best cars for 1983. The positive reception and sales of 200,000 Alliances by 1984 was hindered by the availability of only two body styles. The Alliance was a European-designed car that was not fully suited to U.S. market demands. The distribution network was also not well supported, which led to the lower quality delivered by dealerships with "disastrous consequences" for the image of the automobiles and high warranty costs because of quality failings, which greatly impacted sales from 1985 to the end of production in 1987.

After the 1983 model year, American Motors focused entirely on four-wheel drive autos; the company stopped producing rear-wheel-drive cars. American Motors facilities were then used to assemble the Renault-branded Alliance and Encore compact and subcompact cars.

For the final 1987 model year, a higher-performance version of the Alliance 2-door sedan and the convertible was sold as the Renault GTA. This version had a Renault two-liter engine that was exclusive to it and not shared with the European Renault 9 and 11 models. It was described as "dandy little sports car" and a "pocket rocket" defined as a low-priced "car based on high production economy but with emphasis placed on appearance, performance and handling."

The Encore models were renamed Alliance Hatchback in 1987. Alliance and GTA production ended in June of that year, while the Renault 9 and 11 models continued through the 1988 model year in Europe, being replaced by the all-new Renault 19.

Jeeps

More beneficial to American Motors' future was the introduction of an all-new line of compact Jeep Cherokee and Wagoneer models in the autumn of 1983 for the 1984 model year. Renault's François Castaing, head of AMC's product development team, designed the new Jeep platform with styling by Dick Teague. Renault was interested in selling the Cherokee in Europe, but the vehicle needed to be lighter and more fuel-efficient to meet European expectations. The new XJ weighed 3,100 pounds (1,406 kilograms), due to its unibody construction and lighter components such as the front seats taken from the Renault 9 and 11 and new Renault Alliance.

According to David Tracy, "The new XJ Jeep... was 1,200 pounds [540 kg] lighter, 31 inches [790 mm] shorter, six inches narrower, and four inches lower than the Cherokee SJ it replaced, and yet — thanks to unibody construction — the XJ kept 90 percent of its predecessor's interior volume." And, not only was fuel economy much improved, but "articulation is also better, as is ground clearance, as well as approach, departure, and break-over angles. These, along with its smaller profile, make the XJ better both off-road and on."

AMC's initial forecasts of 40,000 Cherokee and Wagoneer sales were shattered, with sales amounting to 75,000 in their first year. The three leading off-roading magazines, Petersen's 4-Wheel & Off-Road, Four Wheeler, and Off-Road each named the new Jeep Cherokee as the "4x4 of the year." The popularity of these downsized Jeeps pioneered a new market segment for what later became defined as the sport utility vehicle (SUV). They initially used the AMC 150.4 cu in (2.5 L) OHV four-cylinder engine with a carburetor, and a General Motors-built 2.8 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. Starting with the 1987 models, a new 4.0 L (244 cu in) I6 engine, derived from the older 258 cu in (4.23 L) I6 with a new head design and an electronic fuel injection system, replaced the outsourced V6. American Motors' "new" engine was designed with help from Renault and incorporated Renault-Bendix (Renix) parts for fuel and ignition management. The 4.0 developed an outstanding reputation for reliability and toughness. Retained by Chrysler after the buyout, the design received continuous improvements and refinements until its discontinuation at the end of the 2006 model year. The AMC 4.0 engine saw extensive application in XJ Cherokees and Wagoneers, Grand Cherokees, and Wranglers, and many of those engines saw (or are seeing) extremely long lives, quite a few exceeding 300,000 mi (480,000 km). Chrysler built the XJ Cherokee until the end of the 2001 model year in the U.S. and until 2005 in China.

Three other designs continued to be used after the Chrysler buyout: the Grand Wagoneer full-size luxury SUV, the full-sized J-series pickups (built on the same chassis as the earlier SJ model Wagoneers and Cherokees that dated from 1963 with the AMC 360 cu in (5.9 L) V8), and the Jeep Comanche (MJ) compact pickup, which debuted in 1986. Unlike most sport-utility vehicles based on adapted pickup truck designs, the Cherokee XJ SUV came first, and the Comanche was designed as a later pickup truck version.

Production of the full-sized pickups ceased after 1987. The Grand Wagoneer and 360 V8 engine were dropped after 1991 (the last American-made vehicle whose engine used a carburetor for fuel delivery), and the Comanche was discontinued after 1992.

The larger Nash and Hudson range did not sell well, and AMC lost money each year. Dismayed with the results, Romney decided in 1956 that the company's future lay with the compact Rambler line. Romney halted production on the new large cars and focused entirely on the new Rambler Six and V8 introducing them in 1956, despite being scheduled for a 1957 release. Sales of the new Ramblers were poor, and sales of the Hudson and Nash models were almost non-existent, resulting in a $31.7 million operating loss for 1956. Sales improved in 1957, but the company saw a $11.8 million loss. In response, Romney launched a massive public relations campaign, traveling 70,000 miles (112,654 kilometres) nationwide in 12 months. Romney spoke at union halls, dinners, churches, fairgrounds, and radio and TV stations. He was anywhere where he could get the word out about Rambler. Rambler sales took off in 1958, up 58.7%, and 425 new dealers were signed up. As a result, 1958 became AMC's first year of profitability since its formation, with $28 million in earnings. The Nash and Hudson brands were dropped, and Rambler became a marque in its own right and the mainstay of the company. The popular British-built Metropolitan subcompact continued as a standalone brand until it was discontinued in 1961. The prototype 1958 Nash Ambassador/Hudson Hornet, built on a stretched Rambler platform, was renamed at the last minute as "Ambassador by Rambler". To round out the model line, American Motors reintroduced the previous 1955, 100 in (2,540 mm) wheelbase Nash Rambler as the new Rambler American with only a few modifications. This gave Rambler a compact lineup that included the reintroduced American, the 108 in (2,743 mm) wheelbase Rambler Six and Rebel V8, as well as the 117 in (2,972 mm) wheelbase Ambassador.

The "dinosaur-fighter"

Sales of Ramblers soared in the late 1950s partly because of American Motors' focus on the compact car and its marketing efforts. These included sponsoring the hugely popular Walt Disney anthology television series and as an exhibitor at the Disneyland theme park in Anaheim, California. George Romney himself pitched the Rambler product in television commercials.

While the "Big Three" introduced ever-larger cars, American Motors followed a "dinosaur-fighter" strategy. George W. Romney's leadership focused the company on the compact car, a fuel-efficient vehicle 20 years before there was a real need for them. This gave Romney a high profile in the media. Two core strategic factors came into play: (1) the use of shared components in American Motors products and (2) a refusal to participate in the Big Three's restyling race. This cost-control policy helped Rambler develop a reputation for building solid economy cars. Company officials were confident in the changing market and in 1959 announced a $10 million (US$110,445,205 today) expansion of its Kenosha complex (to increase annual straight-time capacity from 300,000 to 440,000 cars). A letter to shareholders in 1959 claimed that the introduction of new compact cars by American Motors' large domestic competitors (for the 1960 model year) "signals the end of big-car domination in the U.S." and that American Motors predicts small-car sales in the U.S. may reach three million units by 1963.

American Motors was also beginning to experiment with non-gasoline-powered automobiles. On April 1, 1959, American Motors and Sonotone Corporation announced a joint research effort to consider producing an electric car that was to be powered by a "self-charging" battery. Sonotone had the technology for making sintered plate nickel–cadmium batteries that can be recharged very rapidly and are lighter than a typical automobile lead–acid battery.

In 1959, American Motors hired designer Dick Teague, who had previously worked for General Motors, Packard, and Chrysler; after Edmund E. Anderson left the company in 1961, Teague was named principal designer and in 1964, vice president.

Business legacy

American Motors was forced to constantly innovate for 33 years until Chrysler absorbed it in 1987. The lessons learned from this experience were integrated into the company that bought American Motors. The organization, strategies, and several key executives allowed Chrysler to gain an edge over the competition. Even today, the lessons gained from the American Motors experience continue to benefit other firms in the industry. There are many legacies of American Motors's business strategies.

American Motors could formulate strategies that industry critics often evaluated as "strokes of brilliance". According to Roy D. Chapin Jr., American Motors realized they were up against the giants of the industry, so to compete successfully they had to be able to move quickly and with ingenuity. An essential strategy practiced by American Motors was to rely on outside vendors to supply components in which they had differential advantages. This approach was finally accepted within the U.S. auto industry, but only after each of the Big Three experienced the failure of attempting to be self-sufficient.

The smallest U.S. automaker did not have "the massive R&D budgets of General Motors, Ford, and foreign competitors... thus American Motors placed R&D emphasis on bolstering the product life cycle of its prime products (particularly Jeeps)." In 1985, American Motors originated product lifecycle management (PLM) as a strategic business approach according to Sidney Hill Jr., executive editor for Manufacturing Business Technology, in an effort to better compete against its much larger rivals by ramping up its product development process.

Another example of American Motors' agility was the ability of management to squeeze money out of reluctant bankers, even in the face of bankruptcy. These core abilities helped save the company from collapse and, after each obstacle, gave it the wherewithal to keep it operating. Ironically, American Motors was never stronger than just before its demise.

American Motors' managers anticipated important trends in the automotive industry. It preached fuel efficiency in the 1950s, long before most auto buyers demanded it. Led by American Motors' Rambler and several European cars, the small car innovation reduced the Big Three's market share from 93% in 1957 to 82% in 1959. The company inherited foreign manufacturing and sales partnerships from Nash and continued developing business relations, decades before most of the international consolidations among automobile makers took place. American Motors was the first U.S. automaker to establish an ownership agreement with a foreign automaker, Renault.

Although small in size, American Motors was able to introduce numerous industry innovations. Starting in 1957, American Motors was the only U.S. manufacturer to fully immerse all automobile bodies in primer paint for protection against rust, until competitors adopted the practice in 1964. Even one of American Motors's most expensive new product investments (the Pacer) established many features that were later adopted by the auto industry worldwide. These included aerodynamic body design, space-efficient interiors, aircraft-style doors, and a large greenhouse for visibility. American Motors was also effective in other areas, such as marketing, by introducing low-rate financing. American Motors' four-wheel-drive vehicles established the foundation for the modern SUV market segments, and "classic" Jeep models remain the benchmark in this field. Roy D. Chapin drew on his experiences as a hunter and fisherman and marketed the Jeep brand successfully to people with like interests. The brand developed a cult appeal that continues.

The purchase of American Motors was instrumental in reviving Chrysler. According to Robert Lutz, former president of Chrysler, the American Motors acquisition was a big and risky undertaking. The purchase was part of Chrysler's strategic "retreat-cum-diversification" plan that he states did not have the proper focus. Initially, the goal was to obtain the world-renowned Jeep brand. However, Lutz discovered that the decision to buy American Motors turned out to be a gold mine for Chrysler. At that time, Chrysler's management was attempting to find a model to improve structure and operations, "something that would help get our minds unstuck and thinking beyond the old paradigms that we were so familiar with". In this transformation, "Chrysler's acquisition of AMC was one of the all-time great moments in corporate serendipity" according to Lutz " that most definitely played a key role in demonstrating how to accomplish change".

According to Lutz (1993), while American Motors had its share of problems, it was far from being a bunch of "brain-dead losers". He describes the "troops" at American Motors as more like the Wake Island Marines in battle, "with almost no resources, and fighting a vastly superior enemy, they were able to roll out an impressive succession of new products". After first reacting with anger to the purchase, Chrysler managers soon anticipated the benefits. To further solidify the organizational competencies held by American Motors, Lee Iacocca agreed to retain former American Motors units, such as engineering, completely intact. In addition, American Motors' lead engineer, François Castaing, was made head of all engineering at Chrysler. In an unthinkable strategic move, Castaing completely dismantled the entrenched Chrysler groups. In their place, American Motors's "platform team" was implemented. These were close-knit cross-functional groups responsible for the whole vehicle, 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 shot, and in Lutz's view, only dramatic action would change that. In summary, Chrysler's purchase of American Motors laid the critical foundation to help re-establish a strategy for its revival in the 1990s.

Top managers at Chrysler after the AMC buyout appeared to have made errors similar to those by American Motors. For example, Chrysler invested heavily in new untested models while not keeping up its profitable high-volume lines.

The American Motors influence also continued at General Motors. GM recruited a new executive team to turn itself from near bankruptcy in the early 2000s. Among the new strategists at GM was Lutz, who understood the importance of passion in product design. Lutz's new thinking at GM incorporated the systems and structures that originated from American Motors's lean and focused operations.

Renault implemented the lessons it learned from its investment in American Motors. The French firm took a parallel approach as it did with its initial ownership of American Motors and applied it to resurrect the money-losing Nissan automaker in Japan.

In 2009, in a deal brokered by the Obama administration, Italian automaker Fiat initiated a white knight takeover of Chrysler to save the struggling automaker from liquidation. The deal was immediately compared to the American Motors-Renault deal; some commentators noted the irony in that Chrysler now faced the same fate that American Motors faced 30 years earlier, while others expressed skepticism of whether the Italian firm could save Chrysler, given how the Renault deal failed. However, there were crucial differences between the two:

Fiat CEO Sergio Marchionne became CEO of Chrysler as part of the deal and immediately began globally integrating Fiat and Chrysler's assets and product lines.

The Fiat-Chrysler merger did not face the political opposition the American Motors-Renault deal did since a family group led Fiat with significant equity, and the U.S. government supported the merger.

While American Motors proved to be a continuous money-loser for Renault, Chrysler returned to profitability fairly quickly and became an essential source of revenue and profits for Fiat, which has been struggling to maintain volume and profitability amid the European debt crisis.

The two firms would later fully merge to create Fiat Chrysler Automobiles in 2014, and would further merge with the French firm PSA Group, owners of the Citroën and Peugeot brands, to form Stellantis in 2021.

Legacy of products

Passenger automobiles

Chrysler revived the "Spirit" name, which was discontinued by AMC after 1983 for use on one of its A platform cars (the Dodge Spirit) from 1989 until 1995. The planned Renault Medallion was sold as the Eagle Medallion in 1988 and 1989. The planned all-new 1988 Renault Premier, a joint development effort between American Motors and Renault, and for which the Brampton Assembly plant (Brampton, Ontario — originally called the Bramalea Plant) was built, was sold by Chrysler as the 1988–1992 Eagle Premier, with a rebadged Dodge Monaco variant available from 1990 through 1992. The full-sized Premier's platform was far more advanced than anything Chrysler was building. 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 (a revived model name that was briefly used by Plymouth in 1951 and 1952—and AMC itself only a decade before), Chrysler New Yorker, Chrysler LHS, Dodge Intrepid, and Eagle Vision. Plymouth almost received their rendition of the LH platform, which was to be called the Accolade. Still, Chrysler decided to drop this version just before LH production started. 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. The LH Platform was subsequently re-engineered, using Mercedes-Benz components, into the Chrysler LX Platform, which was the basis for the Chrysler 300, Dodge Charger, and Dodge Challenger. Chrysler's successor Stellantis later revived the Hornet name in 2023 for Dodge as a rebadged variant of the Alfa Romeo Tonale.

Jeep vehicles

Chrysler marketed the SJ Jeep Grand Wagoneer until 1991, leaving it almost entirely unaltered from the final American Motors rendition before the buyout. The Jeep Comanche pickup truck remained 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 (2.5L) and Cherokee 4000 (4.0L). Although it was not introduced until 1993, the Jeep Grand Cherokee was initially an American Motors-developed vehicle.

Traces of American Motors remained within. American Motors' Toledo, Ohio, plants continued to manufacture the Jeep Wrangler and Liberty, as well as parts and components for Chrysler, Dodge, and Jeep vehicles (although Toledo Machining and Forge were closed in 2005). Although heavily downsized, American Motors' main plant in Wisconsin operated as the Kenosha Engine Plant, producing engines for several Chrysler Group products, including the Wrangler. The plant was closed as part of the post-bailout restructuring of Chrysler in October 2010. The 4.0 L (242 cu in) engine was used until the 2006 model year by DaimlerChrysler in the Jeep Wrangler. American Motors' technologically advanced Bramalea Assembly and Stamping Plants in Brampton, Ontario, later produced the LX-cars – the Chrysler 300, Dodge Challenger, Dodge Charger, and the now discontinued Dodge Magnum.

In terms of American Motors-related parts, some were used as late as 2006, when the Jeep Wrangler (the last new product introduced by American Motors before the Chrysler deal) was still using the AMC Straight-6 engine in some models, as well as the recessed "paddle" door handles that were used since the 1968 model year by American Motors. Both were retired when the Wrangler was completely redesigned for the 2007 model year.

AM General, sold by American Motors in 1983, is still in business building the American Motors-designed Humvee for American and allied militaries. AM General also built the now-discontinued civilian variant, the H1, and manufactured a Chevrolet Tahoe-derived companion, the H2, under contract to GM, who acquired the rights to the civilian Hummer brand in 1999. GM was forced to phase out the Hummer brand in early 2010 due to its bankruptcy restructuring after offering it for sale, but failing to find a suitable buyer.

Although Chrysler introduced new logos for its brands in the 1990s and again in 2010 after the Fiat Group took control of the company, Jeep still uses the American Motors-era logo introduced shortly after American Motors purchased the brand in 1970. Until the Chrysler purchase, Jeep's logo also featured the American Motors emblem.

Legacy of divisions and facilities

Former brands and divisions

During its history, American Motors bought or created, then later sold and divested itself of several specialized divisions, some of which continue to exist today:

Kelvinator, the subdivision of Nash-Kelvinator, was sold by American Motors in 1968 to White Consolidated Industries and subsequently became part of Electrolux. The Kelvinator Company is still in business.

Jeep is a brand under Stellantis. It was a brand of the Fiat Chrysler Automobiles until January 16, 2021. Many Jeep models retained the mechanical specifications and styling cues developed by American Motors well into the 1990s or even into the first decade of the 2000s.

AM General is now owned by KPS Capital Partners. It was organized as an LLC in August 2004.

Wheel Horse Products Division is now owned by the Toro Company.

Beijing Jeep was established by American Motors in 1984 to produce Jeeps for the burgeoning Chinese market; the joint venture was inherited by Chrysler and is currently owned by Mercedes-Benz Group, which renamed it Beijing Benz. American Motors' trials with the venture were the subject of a book on the venture, "Beijing Jeep", by James Mann.

Facilities

American Motors World Headquarters (1954–1975) was located at 14250 Plymouth Road in Detroit and was widely known as the Plymouth Road Office Center (PROC). In 1975, American Motors moved its headquarters from the facility on Plymouth Road to a newly constructed building on Northwestern Highway in Southfield, Michigan, known as the American Center.

The initial building was built during 1926–27 by the Electric Refrigeration Corporation (subsequently Nash-Kelvinator) with design by Amedeo Leoni, industrial layout by Wallace McKenzie, and tower enclosure and industrial units by William E. Kapp of SHG. The original 600,000 sq ft (56,000 m2) three-story factory and four-story administration building had been headquarters to Nash-Kelvinator from 1937 until 1954, as well as a factory for refrigerators, electric ranges, and commercial refrigeration—as well as airplane propellers for the U.S. military effort during World War II.

During World War II, the U.S. War Department contracted with Nash-Kelvinator to produce 900 Sikorsky R-6 model helicopters. As part of that contract, a 4.5 acres (1.8 ha) site north of the factory was used as the smallest airport in the world as a flight testing base. Nash-Kelvinator produced about 50 R-6s a month during the war. When the contract was terminated at the war's end, 262 helicopters had been constructed.

During Chrysler's occupancy of the complex, it was known as Jeep and (Dodge) Truck Engineering (JTE), including facilities for body-on-frame work as well as testing facilities and labs. The buildings included 1,500,000 square feet (140,000 m2), approximately one-third devoted to engineering and computer functions.

As of 2007, Chrysler employed over 1,600 people at the complex, moving those operations in mid-2009 to the Chrysler Technology Center. The property was put up for sale by Chrysler in early 2010. It was bought by a local man who gutted the building for scrap and left it in a dilapidated state before losing it to foreclosure. The abandoned building was in possession of the city of Detroit and officials were considering if the industrial site would be more marketable if the building was torn down. In 2018, the Wayne County Commission approved a land swap that included a new jail complex for the county as well as a potential revival for the old American Motors building.

American Center – American Motors' corporate headquarters in Southfield, Michigan, is still standing, still open, and still called "American Center". The original "American Center" signage at the top of the building remained until 2005. However, the American Motors logo has been removed. The signage has since been changed to Charter One. The 25-story building is rented to several organizations and companies as office space. After the Chrysler acquisition, Chrysler Financial occupied as much as 175,000 square feet (16,300 m2) of the building.

Toledo South Assembly Plants – Torn down by Chrysler in 2007. Until it was demolished, most of the signage outside the factories was still visible, and there were areas where Chrysler painted over the American Motors logo.

Toledo Forge – Torn down by Chrysler in 2007.

Brampton (formerly Bramalea) Assembly and Satellite Stamping Plants – Still in use by Chrysler. American Motors designed this US$260 million (US$805,733,504 in 2025 dollars), 2,500,000-square-foot (230,000 m2) plant, which was operational by 1986. This plant was designed and built by American Motors for the specific purpose of building the Eagle Premier. Like the older Brampton plant, this factory was also part of American Motors (Canada) Ltd., and with the Chrysler buyout in 1987, it became part of Chrysler Canada Limited. The plant built the LX vehicles: the Chrysler 300, the Dodge Charger, and the Dodge Challenger.

Kenosha "Main" Plant – Portions of the Kenosha Main Plant (later Chrysler's Kenosha Engine plant with some new additions) at 52nd Street and 30th Avenue continued to be run by Chrysler as an engine-production factory. This plant closed in October 2010 as part of Chrysler LLC's Chapter 11 bankruptcy procedure which resulted from the automotive industry crisis. Demolition of the plant began in early December 2012.

Canadian Fabricated Products Ltd. – An American Motors division (part of American Motors of Canada) in Stratford, Ontario; established in 1971 and sold post-buyout by Chrysler in 1994; produced automotive interior trim.

Guelph Products – An American Motors division (also part of American Motors of Canada) in Guelph, Ontario; opened in 1987 and subsequently sold by Chrysler in early 1993; the operation supplied molded plastic components to the Brampton Assembly Plant.

Coleman Products Corporation – An American Motors subsidiary in Coleman, Wisconsin. Manufactured automotive wiring harnesses for American Motors and other automakers.

Evart Products Co. – An American Motors subsidiary in Evart, Michigan. The plant was established in 1953 with 25 workers and eventually expanded to over 1,200, becoming Osceola County's largest employer. This factory manufactured injection molded plastic parts (notably, grilles) for American Motors (supplying 90% of in-house needs), as well as for other automakers. In 1966, Products Wire Harness was built. After Chrysler purchased American Motors, Collins & Aikman took over the factory.

Mercury Plastics Co. – Mercury Plastics operated a plant at 34501 Harper Ave., Mt. Clemens, Michigan. The company was acquired in 1973 for 611,111 shares of American Motors stock. The company produced plastic parts for American Motors, as well as for uses in other industries.

Windsor Plastics Co. – Windsor Plastics, 601 North Congress Avenue, Evansville, Indiana, was acquired in 1970. The division produced plastic parts for American Motors and other industries. The company was sold to Guardian Industries in 1982 and underwent a name change to Guardian Automotive Trim, Inc. It is still in operation. The original factory in Evansville continues to manufacture plastic parts for the OEM and aftermarket automotive industries. Items manufactured include grilles, bezels, and other parts.

The American Motors Proving Grounds – The former 300 acres (1.2 km2; 0.47 sq mi) American Motors Proving Grounds in Burlington, Wisconsin, had initially been Nash's test track and subsequently became Jeep's test facilities (after American Motors acquired Kaiser Jeep in the 1970s). The grounds were disused after Chrysler's takeover of American Motors in 1987. Subsequently, they became the engineering and test facility for MGA Research. The company rents out this proving grounds to the National Highway Traffic Safety Administration (NHTSA), for "ride-and-drive" events by automakers, as well as for movies and commercials.

Axle tooling equipment – Sold in 1985 to Dana Holding Corporation, and they named the AMC-15 axles as Dana 35. Dana manufactured the AMC-20 axles for AM General's Hummer H1. The company also continues to produce the AMC-15 axle; however, they have been upgraded from American Motors' original design with multiple variations (including front axle designs).

Holmes Foundry, Ltd. – American Motors' block-casting foundry was a major American Motors factory now obliterated. Holmes had its main office and foundry at 200 Exmouth Street, Sarnia, Ontario, Canada. Holmes was established in 1918 by J. S. Blunt and was called Holmes Blunt Limited. In the early years, Ford Motor Company contracted the plant for a steady supply of engine casting blocks. This factory had a local reputation as a dirty, dangerous workplace. The company had three divisions, all operating on one site at the edge of Sarnia. Beginning in 1962, American Motors contracted with Holmes Foundry to supply American Motors with cylinder block castings. American Motors acquired 25% interest in the foundry in January 1966. In July 1970, American Motors acquired 100% of Holmes Foundry through an exchange of shares, making it a wholly owned subsidiary. However, it was not until October 1981 that Holmes Foundry finally became a division of American Motors of Canada. As part of its acquisition of American Motors in 1987, Chrysler Corporation took ownership of the Holmes facility and its manufacturing business but closed the operation on September 16, 1988. The industrial facilities were cleaned of their environmental contaminants in 2005 in preparation for a new highway interchange to be built on the site.

Kenosha "Lakefront" (Kenosha, Wisconsin) Plant – The American Motors plant in downtown Kenosha along Lake Michigan was razed, and after reclamation, the land was used for new development. At the company's inception in 1954, the plant covered 3,195,000 sq ft (296,800 m2) and, together with the Milwaukee plant, had an annual production capacity of 350,000 cars. In 1977, the factory was used for the car-production scenes for the movie The Betsy.

Milwaukee Body (Milwaukee, Wisconsin) Plant – American Motors inherited a 1,600,000 sq ft (150,000 m2) body plant in Milwaukee from Nash. The plant had been the main body plant for the Seaman Body Corporation, which did a lot of business assembling bodies of various designs with Nash and other makers. Nash had purchased half of this company in 1919 and took over the remaining half in 1936. For American Motors, the plant was sometimes a problem. For example, in late 1961, George Romney stormed through the plant and threatened to close it and eliminate its 9,000 jobs due to labor problems. The plant survived until the Chrysler buyout. Chrysler later decided to dispose of the factory. Upon closure, the site was named a Superfund site. The factory was demolished, and the site was rehabilitated and redeveloped.

Danforth Ave (Toronto, Ontario) Plant – Inherited from Nash. This plant was purchased by Nash from Ford of Canada in 1946. The first Canadian-built Nash rolled off the line in April 1950. Upon the formation of American Motors in 1954, the plant assembled 1955 Nash and Hudson Ramblers (2 and 4-door sedans), as well as Nash Canadian Statesman and Hudson Wasp (4-door sedans). In 1956, the plant continued to assemble the Nash and Hudson Rambler (4-door sedans and wagons) and the Nash Canadian Statesman (4-door sedan), but the Hudson Wasp was imported. That same year, American Motors (Canada) Limited was formed – taking over Nash Motors of Canada Limited and Hudson Motors of Canada Limited. In 1957, American Motors assembled the Rambler Six and Rambler Rebel V8 at the Danforth plant. American Motors closed the plant in July 1957 and imported Ramblers into Canada until 1961. The structure remains today as the Shoppers World Danforth Lowe's store.

Tilbury, Ontario Assembly Plant – Another plant American Motors inherited from the 1954 merger, this one via Hudson. Specifically, it was a contract with CHATCO Steel Products, which owned the plant. American Motors ceased Hudson production at the Tilbury plant in 1955.

Brampton Assembly Plant – American Motors opened a plant in 1960 in Brampton, Ontario, Canada. It was part of American Motors of Canada. Rambler Drive, a small street just west of this plant, still exists and leads into a residential subdivision built in the 1960s. In 1987, with the Chrysler buyout, the division and the plant were absorbed, becoming part of Chrysler Canada Limited. The plant was closed in 1994 and sold to Wal-Mart for use as their Canadian warehouse. This plant/warehouse was demolished in 2004 and redeveloped in 2007, with multiple smaller commercial buildings now onsite; a new Lowes Home Improvement Warehouse now takes up the most extensive section of this commercial development. Note that this is a separate facility from the current Brampton (formerly Bramalea) Assembly and Satellite Stamping Plants nearby.

South Charleston Stamping Plant – A South Charleston, West Virginia, facility. While American Motors leased it, the plant stamped steel automotive parts. American Motors announced it would expand productive capacity in 1974 when automobile sales were not increasing. Most of the stamping work for AMC cars was performed by suppliers. The automaker aimed to integrate body panel stamping into its manufacturing system. The initial phase of development for the plant called for four press lines until 1977, but a fifth line was added to the operation late summer of 1976. The facility also incorporated AMC's international operations by importing steel from Belgium and shipping body parts to assembly plants in Canada and Mexico, as well as to its Milwaukee and Kenosha factories. Parts for the Gremlin, Hornet, and Pacer were produced in West Virginia. Some of the new equipment installed by AMC was financed by industrial revenue bonds issued by Kanawha County with the debt to be retired through the lease payments from AMC. In 1978, Volkswagen of America purchased the plant. The sale generated an undisclosed amount of cash for AMC after posting a $46 million loss for 1977 and the agreement will be for VW continue to supply stampings to AMC after taking over the plant in January 1978. The facility supplied stampings for the Volkswagen Westmoreland Assembly Plant but subsequently VW sold the plant when it ceased production at Westmoreland in 1988. It was purchased by Park Corporation of Cleveland, Ohio. In October 2006, Union Stamping and Assembly declared bankruptcy. The current owner of the facility is Gestamp. The plant is used to design and make metal components for vehicles. In 2023, the company announced an investment of $69.5 million over two years to create 100 jobs and make metal parts for electric vehicles. West Virginia government provided a $7.5 million incentive.

Former subsidiaries and affiliates

AM General

Arab American Vehicles

Beijing Jeep

Shinjin Jeep Motors

Vehículos Automotores Mexicanos

American Motors Sales Corp.

American Motors Realty Corp.

American Motors Leasing Corp.

Evart Production Co.

Coleman Products Co.

American Motors Pan American Corp.

Jeep Corp.

McDonald Molding, Inc.

Mercury Plastics Co.

Rantoul Products, Inc.

American Motors (Canada) Ltd.

Rambler Motors (A.M.C.) Ltd. (United Kingdom)

American Motors Corporation de Venezuela, C.A.

American Motors Financial Corp.

Jeep Australia Pty. Ltd.

Jeep de Venezuela S.A.

Another milestone within AMC's management was the departure of Dick Teague. He was American Motors' design vice president for 23 years - an industry record. he was responsible for many Jeep and AMC designs, including the Javelin, AMX, Hornet, Gremlin, Pacer, Matador coupe, and the Cherokee XJ.

Problems at Renault and assassination

In France, Renault continued to experience financial trouble. The investment in American Motors (including the construction of a new Canadian assembly plant in Brampton, 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) it could declare American Motors officially bankrupt, thereby losing its investment; (2) it could come up with more money, but Renault management perceived American Motors as a bottomless pit; or (3) American Motors could be put up for sale, and the French company could get back part of its investment. At the same time, Renault's new chairman, Georges Besse, continued to champion the French firm's future in the North American market, pointing to the company's completion of the newest and most advanced automotive assembly plant in North America, then known as Bramalea Assembly, as well as the recent introduction of the thoroughly modern, fuel-injected 4.0 L and 2.5 L engines. In addition, Jeep vehicles were riding an unprecedented surge in demand. It seemed to Besse and others that American Motors was on course for profitability.

However, on November 17, 1986, Besse, who had a high-profile among French capitalists, was assassinated by a member of a French clandestine far-left extremist group, Action Directe. AMC's plans to reinvigorate sales with higher-priced Renaults continued for a little longer, with the plan being a three-pronged lineup beginning with the mid-sized Medallion, the larger Premier above it, and the sporty Renault Alpine providing a halo car. The Medallion and the Premier both went on sale, but Alpine never made its planned mid-1987 rollout.

Chrysler purchases American Motors stock

Under pressure from Renault executives following Besse's death, Renault's new president, Raymond Levy, set out to repair employee relations and divest the company of its investment in American Motors. Renault owned 46.1% of American Motors' outstanding shares of stock. In 1986, American Motors posted a $91.3 million loss.

The earlier agreement between Chrysler and American Motors in 1985, under which American Motors would produce M-body chassis rear-drive large cars for five years from mid-1986 through 1990, fed the rumor that Chrysler was about to buy AMC. According to the head of manufacturing for Chrysler, Stephan Sharf, the existing relationship with AMC producing a car for a competitor facilitated the negotiations.

On March 9, 1987, Chrysler agreed to buy Renault's share in American Motors, plus all the remaining shares, for about $1.5 billion ($4,250,878,735 in 2025 dollars).

Chrysler made no secret that they were only interested in AMC for Jeep, AMC's new assembly plant in Canada, and AMC's network of 1,300 dealerships nationwide. Chrysler president Lee Iacocca was quoted in the March 10, 1987 LA Times as saying:

For Chrysler, the attractions are Jeep, the best-known automotive brand name in the world; a new... assembly plant at Bramalea, Canada, and a third distribution system giving us access to a larger market.

With the sale complete, American Motors became the Jeep-Eagle division of Chrysler on August 25, 1988, and was fully merged as of March 29, 1990.

The sale came at a time when the automotive press was enthusiastic about the proposed 1988 lineup of Renault, Eagle, and Jeep vehicles and reported that the small automaker's financial outlook was improving. American Motors' quarterly results for all of 1987 were positive. Chrysler purchased American Motors when the company appeared to be in an excellent financial position with its new product line.

It was the Jeep brand that Chrysler CEO Lee Iacocca wanted – in particular, the ZJ Gen. of the Grand Cherokee, then under development by Jeep engineers, which ultimately proved highly profitable for Chrysler (the nameplate remains in production today). However, the buyout included other attractive deal sweeteners for Chrysler. Among them was the world-class, brand-new manufacturing plant in Bramalea, Ontario, which offered Iacocca an unprecedented opportunity to increase his company's production capacity at a fire-sale price. American Motors had designed and built the plant in anticipation of building the Renault 25-based Eagle Premier. Additional profitable acquisitions were the American Motors dealer network (the addition of which strengthened Chrysler's retail distribution – many American Motors dealers switched to selling Chrysler products), and American Motors' underrated organization and management talent – which Chrysler quickly assimilated (numerous leading Chrysler engineers and executives were ex-American Motors).

Renault left the U.S. market entirely as a brand in 1987. Thus, the Renault Medallion was sold through the new Jeep-Eagle division as an Eagle, not a Renault. The Jeep-Eagle division was formed from the American Motors Jeep Renault dealer network. The Jeep and Eagle vehicles were marketed primarily by former American Motors dealers. The American Motors badge was last used on the Eagle Sports Wagon through the 1988 model year, then eliminated, and the Eagle car brand was phased out by 1998.