Thursday 14th January 1954
The Hudson Motor Car Company merged with Nash-Kelvinator, a car manufacturer formed in turn by the merger of the Nash automobile firm and the Kelvinator kitchen-appliance company. The new concern was called the American Motors Corporation. At the time, it was the largest corporate merger in US history. By the end of 1957 the original Nash and Hudson brands were completely phased out. The company struggled at first, but Rambler sales took off. After two model years (1963 and 1964) of only producing compact cars, AMC focused back to larger and more profitable cars like the Ambassador line from the perceived negative of the Rambler’s economy car image. In the face of deteriorating financial and market positions, Roy D. Chapin, Jr., took charge to revitalize the company, and designer Richard A. Teague economized by developing several vehicles from common stampings. While prices and costs were cut, new and more sporty automobiles were introduced, and from 1968 AMC became known for the Javelin and AMX muscle cars. AMC purchased Kaiser’s Jeep utility vehicle operations in 1970 to complement their existing passenger car business. From 1980, AMC partnered with France’s Renault to help finance their manufacturing operations, obtain much-needed capital, and source subcompact vehicles. Renault sold its 47% ownership stake in AMC to Chrysler. Chrysler made a public offer to purchase all the remaining outstanding shares of AMC stock on the NYSE. Renault left the US market completely as a brand in 1987. The Renault Medallion was sold through the newly formed Jeep Eagle Division of Chrysler as an Eagle, not a Renault. AMC’s badge would be used on the Eagle Sports Wagon through the 1988 model year, then be eliminated entirely. The Jeep/Eagle division of Chrysler Corporation was formed from the AMC Jeep Renault dealer network. The Jeep and Eagle vehicles were marketed primarily by former AMC dealers. Ultimately, the Eagle Brand of car would be phased out like Chrysler’s DeSoto, Plymouth, and Imperial by 1998.
