American Motors Corporation ( AMC ) is an American car company formed by the 1954 Nash-Kelvinator Corporation merger and the Hudson Motor Car Company. At that time, it was the largest corporate merger in US history.
AMC went on to compete with the Big Three US, Ford, GM and Chrysler - with its small cars including American Rambler, Hornet, GREMLIN and Pacer; muscle car including Marlin, AMX and Javelin, and an early 4-wheel-drive variant of Eagle, America's first true crossover.
The company is known as "a small company that is nimble enough to exploit a special market segment left unattended by the giants," and is widely known for the work of major stylist designer Dick Teague, who "has to settle for a much more restrictive budget than co- his colleagues in Detroit's Big Three "but" has the talent to make the most of his employer's investment. "
After an intermittent but unsuccessful period, Renault acquired a key interest in AMC in 1979 - and the company was eventually acquired by Chrysler. In the 1987 ruin, The New York Times said AMC was "never a company with the power or cost structure to compete with confidence at home or abroad."
Video American Motors Corporation
1954 kreasi
The merger of 1954 Nash-Kelvinator Corporation and Hudson Motor Car Company, and the creation of American Motors, led by George W. Mason to reap the strengths of both companies against bigger "Big Three" car makers (General Motors, Ford and Chrysler ).
Within a year, George W. Romney, future Michigan governor, took over, reorganized the company and focused the future of AMC on a new small car line. At the end of 1957, Nash's and Hudson's inheritance brands were completely removed. The company struggled at first, but Rambler's sales started. A Rambler won the 1959 Run Economy Car and in 1960, was the third most popular car brand in the United States, behind Ford and Chevrolet. After two years of models (1963 and 1964) producing only compact cars, AMC focuses back to bigger and more profitable automakers such as the Ambassador's line from those seen as negative from the image of Rambler's economy car. In the face of deteriorating financial and market position, Roy D. Chapin, Jr., took over to revitalize the company, and designer Richard A. Teague saves costs by developing multiple vehicles from a common stamp. While prices and costs were cut, new and more sporty cars were introduced, and from 1968 AMC became famous for Javelin and AMX muscle cars.
AMC purchased the Kaiser Jeep utility vehicle operation in 1970 to complement the existing passenger car business. Beginning in the early 1970s, the company is moving toward the design of new compact cars based on the Hornet, including the Hornet itself and the Gremlin. Other new models in the 1970s included Matador and Pacer. The slippery sales and tight finances resulted in the elimination of the Matador line in 1979 and the Pacer line in 1980, making AMC focus almost exclusively on Hornet-based platform cars and Jeep lines. Hornet derivatives from the late 1970s included Spirit and Concord, while the Eagle AMC Eagle 4-wheel-drive introduced in 1979 was one of the first true crossovers.
From 1980, AMC partnered with French Renault to help finance their manufacturing operations, acquire much needed capital, and source subcompact vehicles. In 1983 Renault had an interest in controlling the AMC. In 1983 the model, the AMC brand focuses entirely on AWD autos; the company stopped producing two-wheeled car. The AMC facility is used to produce Renault Alliance and Encore compact and subcompact cars. In 1985 Chrysler signed an agreement with AMC to produce Dodge Diplomats and Plymouth Furys as well as Dodge Omnis and Plymouth Horizons at AMC's Kenosha plant, Wisconsin. At that time, AMC had excess manufacturing capacity, so the manufacturing contract for Chrysler made sense. In 1987, after the further development of new vehicles including Medallion (Renault 21) and Giorgietto Giugiaro's Italdesign new front-sized full-size sedan into Eagle Premier, Renault sold its 47% stake in AMC to Chrysler. Chrysler makes a public offering to buy all remaining remaining AMC shares on the NYSE. Renault left the US market completely as a brand in 1987. Renault Medallion was sold through the newly formed Eagle Chrysler Jeep Division as Eagle instead of Renault. The AMC badge will be used on the Eagle Sports Wagon through the 1988 model, then completely removed. Jeep/Eagle Division of Chrysler Corporation is formed from AMC Jeep Renault dealer network. Jeep and Eagle vehicles are marketed mainly by former AMC dealers. In the end, Eagle Brand cars will be removed like DeSoto Chrysler, Plymouth, and Imperial in 1998.
Maps American Motors Corporation
Formation
In January 1954, Nash-Kelvinator Corporation began to acquire the Hudson Motor Car Company (in what is called a merger). The new company will be called American Motors Corporation. (The company formerly of the same name, co-founded by Louis Chevrolet, has been in New Jersey from 1916 to 1922 before joining Bessemer-American Motors Corporation.)
The Nash-Kelvinator/Hudson Deal is a direct share transfer (three shares of Hudson registered on 11 1/8, for two AMC shares and one Nash-Kelvinator share registered at 17 3/8, for one part of the AMC) and completed in season spring of 1954, forming the fourth largest automotive company in the US with assets of US $ 355 million and more than $ 100 million in working capital. The new company holds the CEO of Hudson A.E. Barit as a consultant and he sits on the Board of Directors. Nash George W. Mason became President and CEO.
Mason, the merger architect, believes that the survival of the remaining independent US automakers depends on their joining in a multibrand company capable of challenging the "Big Three" - General Motors, Ford, and Chrysler - as equals. "The frantic 1953-54 Ford/GM price war" has a very bad impact on the remaining "independent" automakers. The reasons for the merger between Nash and Hudson include helping to cut costs and strengthen their sales organizations to meet the tough competition expected of the 'Big Three' car.
One quick result of the merger was Nash's doubling of purchases and production, allowing Hudson to cut an average price of $ 155 on the Wasp line, up to $ 204 on the more expensive Hornet model. After the merger, AMC had a favorable first quarter during the second three months of 1955, generating $ 1,592,307, compared to a loss of $ 3,848,667 over the same period in the previous year. Mason also held an informal discussion with James J. Nance of Packard to describe his strategic vision. A provisional plan was made for AMC to purchase Packard Ultramatic automatic transmissions and Packard V8 machines for specific AMC products.
In 1954, Packard acquired Studebaker. The new Studebaker-Packard Corporation (SP) is creating a new 320 liter (5.2Ã, L) Packard V8 engine and an Ultramatic Packard automatic transmission available for AMC for Nash Ambassador and Hudson Hornet models in 1955. When Mason died in 1954, George W Romney succeeded him. Ironically, Romney had been offered Nance's job. In 1948, Romney accepted an offer from Packard for the post of chief operating officer and from Nash for the number two position at the company. Although Packard's offer will pay more, Romney decides to work under Mason because he thinks Nash has a brighter future. President SP James Nance refused to consider joining AMC unless he could take the top spot (Mason and Nance are former competitors as chief Kelvinator and Hotpoint, respectively), and a week after Mason Romney's death announced, there was no merger either directly or indirectly. " Romney agrees with Mason's commitment to buy SP products. Mason and Nance agree that in return S-P will try to buy components from American Motors, but S-P does not do it. Because Packard machines and transmissions are relatively expensive, AMC started developing its own V8. AMC also spent US $ 40 million to develop the Single Single Single Unit monocoque, which debuted in the 1956 model. In mid 1956, 352 cu in (5.8Ã, L) Packard V8 and TwinUltramatic transmissions were removed and replaced by the new V8 AMC and by the transmission of GM Hydra-Matic and Borg-Warner.
In 1964, Studebaker production in the United States was over, and Canadian operations ceased in 1966. The "Big Three", plus AMC's Kaiser Jeep, International Harvester, Avanti, and smaller Checker are the remaining North American automotive manufacturers.
Product development in the 1950s
Merger product
American Motors combines Nash and Hudson's product lines under a general manufacturing strategy in 1955, with Nashes and Hudsons consolidated production at Kenosha. The Detroit Hudson plant was converted into a military contract production and eventually sold. A separate Nash and Hudson dealer network is maintained. The Hudsons were redesigned to bring them in harmony with Nash's body style.
The sold-out Rambler model sold both Nash and Hudson in 1955 and 1956. The engineered ramblers with this badge, along with similar Metropolitans, both store for dop, nameplates, and other minor trim details.
The existing full-size Nash product line continued and Nash Statesman and the Ambassador were restored as the new Hudson Wasp and Hudson Hornet. Although the cars have the same shell, they are at least different from each other like Chevrolet and Pontiac. Hudsons and Nash each use their own machines as before: Hudson Hornet continues to offer 308 cu on (5.0Ã, L) I6 which has championed the champion (NASCAR) during the early 1950s; Hornet now uses Hudson Jet's former machine.
Ambassador Nash and Negarawan continued with their overhead-valve and sixth L-heads respectively. Hudson and Nash cars have different front suspensions. Baggage lid can be exchanged but other body panels, rear window glass, dash panel and different braking systems. The Hudson Hornet and Wasp, and their Nash colleagues, have improved travel and visibility; also better fuel economy because Nash's lighter body is united.
For the 1958 model, the Nash and Hudson brands were dropped. Rambler became a marque in its own right and the company's mainstay. The British Metropolitan Subcompacts were built continuously as a standalone brand until it was discontinued in 1961. The Nash Ambassador/Hudson Hornet prototype 1958, built on a stretched Rambler platform, was renamed in the last minute as "Ambassador by Rambler". To complement the model, AMC reintroduced Nash Rambler's 1955, 100-in (2,540 mm) wheelbase as a new American Rambler with just a few modifications. This gives the Rambler a compact lineup with 100 in (2,540 mm) American, 108 in (2,743 mm) Rambler Six and Rebel V8, as well as 117 in (2,966 mm) ambulatory vehicle wheels.
The "dinosaur-fighter"
Ramblers 'sales soared in the late 1950s partly because of American Motors' focus on compact cars and its marketing efforts. This includes sponsoring the hugely popular Walt Disney television anthropology series and as an exhibitor at the Disneyland theme park in Anaheim, California. George Romney himself installed Rambler products in television commercials.
While the "Big Three" introduced a larger car, AMC followed a "dinosaur-combat strategy". Leadership George W. Romney focuses the company on compact cars, fuel-efficient vehicles 20 years before there is a real need for them. This gives Romney a high profile in the media. Two major strategic factors come into play: (1) the use of shared components in AMC products and (2) refusals to participate in the Big Three retribution contest. This cost control policy helps Rambler develop a reputation as a solid economy car. Company officials were confident in the changing market and in 1959 announced $ 10 million (US $ 83,949,772 in 2016 dollars) expansion of the Kenosha complex (to increase annual time capacity from 300,000 to 440,000 cars). A letter to shareholders in 1959 claimed that the introduction of a new compact car by a large domestic competitor AMC (for the 1960 model) "signifies the end of major car dominance in the US" and AMC predicts small car sales in the US could reach 3 million units in 1963.
American Motors also started experimenting in non-gasoline-powered cars. On April 1, 1959, AMC and Sonotone Corporation announced a joint research effort to consider producing an electric car that would be powered by a "self-charging" battery. Sonotone has the technology to make sintered, rechargeable nickel-cadmium plates that are fast and lighter than common car lead-acid batteries.
In 1959, AMC hired designer Richard A. Teague who previously worked for General Motors, Packard, and Chrysler; After Edmund E. Anderson left the company in 1961, Teague was appointed as the principal designer and in 1964, the Vice President.
Change the focus in the 1960s
Innovation
In an effort to remain competitive, American Motors produced a wide range of products during the 1960s, and added innovations long before the "Big Three" introduced them.
For example, the Rambler Classic is equipped with a standard tandem master cylinder in 1962 that provides stopping capability even if there is a failure in the brake system. Only Cadillac also includes this security feature six years before US safety regulations require it for all cars.
Rambler is also an early pioneer in offering automatic shift indicator sequences (PRN D2 D1 L, where if one is selected "D2", the car starts in second gear, while "1" starts in first gear) on "Flash-O-" Matic Transmission "which is similar to the current" PRNDSL "shift pattern, was made mandatory for a 1968 model car, requiring a neutral position between the reverse and the drive, while General Motors still offers an inverse shift selector right next to a low gear (PNDSLR) until the 1960s, an.
Unique to the domestic auto industry, the AMC offers customizable front seat backs from their Nash origins, and in 1964 Classic and Ambassador were equipped with standard double lean front seats nearly a decade before the Big Three offered them as an option. The Bendix disc brakes were standardized on Marlin and optionally on other models in 1965. This made Marlin the first modern American car with standard disc brakes, while the Big Three did not offer it until the early 1970s on most of its models. meet Federal Vehicle Safety Standard.
In the early part of this decade, sales were very strong, thanks to no small part of the company's history in building small cars, which became famous in 1961. In 1960 and 1961, Ramblers was ranked third among domestic car sales, up from third on the strength of small car sales, even in the face of many new competitions. Romney's strategic focus is very successful as reflected in the company's healthy earnings from year to year. The company becomes completely debt free. Financial success allowed the company to reach an agreement on August 26, 1961 with the United Auto Workers for a new revenue-sharing plan in the automotive industry. His new three-year work contract also includes an expensive annual increase in salary, as well as an increase in automatic living costs. However, in 1962, Romney resigned to run for Michigan governor. His successor is Roy Abernethy, a successful AMC sales executive.
Abernethy believes that AMC's reputation for building a reliable, economical car can be translated into new strategies that can follow AMC buyers as they convert them into larger and more expensive vehicles. AMC has in fact produced a large car throughout most of its history, The Rambler Ambassadors are every size as large as a full-sized Ford or Chevy. There was only the absence of the largest car of the AMC range in 1963 and 1964. The first car that carries his signature was the 1965 model. This is an older Ambassador series and a new convertible for the larger model. During the middle of the year, a fastback, called Marlin, was added. This car competes directly with cars like the Dodge Charger, AMC's "family-sized" car emphasizes personal luxury. Abernethy also requested Rambler brand emphasis. Marlin and the 1966 Ambassador lost their Rambler signboards, and were given badges as "American Motors" products. New models share fewer parts of each other and are more expensive to build.
Difficult choice
The ongoing search "in the toughest business world race - a rolling contest against the Big Three car maker" also means an annual style change that requires huge expenditure. Total management belief of American Motors "that the new 1965 model will stem the annoying deterioration" is actually starting to lag in sales. In addition, a new line of redesigned cars in the full and medium sized markets was launched in the fall of 1966. These cars were commended for their fluid styling, and Abernethy's ideas were successful because Sales Ambassador increased significantly. The design date of American Rambler, however, harms its sales which offsets the profits from the sale of the Ambassador. There are quality control issues with the introduction of new full-sized cars, as well as persistent rumors of corporate destruction due to their treacherous cash flow. Consumer Reports rating negatively for AMC's Safety does not help.
American Motors did not have their own electric car program as the Big Three did, and after some contract negotiations were withdrawn in 1967 with Gulton Industries to develop new batteries based on lithium and speed controllers designed by Victor Wouk. Battery nickel-cadmium-powered 1969 Rambler station wagon shows a power system that scientists say is an "incredible car". This is also the beginning of other experimental "plug-in" AMC vehicles developed with Gulton - Amitron and Electron.
Abernethy was ousted from AMC on 9 January 1967 and damage control fell to the new CEO, Roy D. Chapin Jr. (founding son of Hudson Motors, Roy D. Chapin). Chapin quickly applied changes to AMC's offerings and tried to regain market share by focusing on the younger demographic market. Chapin's first decision was to cut Rambler's price to $ 200 from the basic Volkswagen Beetle. Innovative marketing ideas include creating an AC standard on all 1968 Ambassador models (available as a removable option). This makes AMC the first US automaker to make standard AC equipment on a line of cars, ahead of even luxury cars like Lincoln, Imperial, and Cadillac.
The company introduced exciting entries for this decade muscle car boom, especially AMX, while Javelin served as a company entrant to the sporty "pony car" market made by Ford Mustang. Additional operational money was obtained in 1968 through the sale of Kelvinator Appliance, which was once one of the company's core operating units.
The Rambler brand actually dropped after the 1969 model in North America, although it continues to be used in some overseas markets as either a model or a brand name, with its last use in Mexico in 1983. From 1970, AMC was the brand used for all cars passenger of American Motors; and all vehicles from that date contain the name of AMC and the new company logo. However, the names of American Motors and AMC were used interchangeably in the corporate literature until the 1980s. The branding issue is more complicated when passenger car Eagle all-wheel drive company was marketed as American Eagle in the 1980s.
Chapin expanded its American Motors product line in 1970 through the purchase of Kaiser Jeep Corporation (formerly Willys-Overland) from Kaiser Industries. It added the lightweight Jeep brand of light trucks and SUVs, as well as the Kaiser-Jeep government contract - specifically the M151 range from the military Jeep and the DJ-Series Jeep post. AMC is also expanding its international network. Military and special products business was reshaped as General Motors General Products Division of America, which was later rearranged to AM General.
1970's product development
In 1970, AMC consolidated all passenger cars under a different brand identity and debuted various compact cars.
The Hornet and the Gremlin platform together. Gremlin, the first subcompact built in North America, sold over 670,000 units from 1970-1978. The Hornet became AMC's top-selling passenger car since the Rambler Classic, with more than 860,000 units sold by the end of production in 1977.
AMC Matador's new medium replaced Rebel in 1971, using an advertising campaign that asked, "What is Matador?" In 1972, the AMC won a tender for the Los Angeles Police Department cruisers, and Matadors was used by the department from 1972 to 1975, replacing Plymouth Satellite. American Motors supplies Mark VII Limited owner Jack Webb with two Matadors for use in his popular television series Adam-12, raising the public profile of the car.
In 1973, AMC signed a license agreement with Curtiss-Wright to build Wankel engines for cars and Jeeps.
Started in 1974, the Matador sedan and station wagon were a little fresher, with new front end boxier. Two-door Matador's two-door hardtop, known as "flying brick" due to its poor aerodynamics in the NASCAR competition, was replaced at a great price with a slim, smooth, stylish two-door coupe. The model received praise for its design, including the "Best Car Style 1974" by Car and Driver magazine, customer satisfaction, and sold nearly 100,000 coupes over a five-year period. The Matador Coupe shares some components with a sedan matador and station wagon in addition to suspension, drive train, multiple trims, and interior parts.
The ambassador was redesigned and stretched 7 inches (178 mm) to become the largest ever, just like the 1973 Arab Oil Embargo that sparked gasoline rations across the country. The additional length is due to the new front end design and the stronger energy absorbent bumper required for all cars sold in the US. Sales of all major cars fell due to economic problems and rising gasoline prices. The full ambassador was discontinued as the AMC flagship after the 1974 model. Nash and AMC made the Ambassador from 1927 to 1974, the longest use of the same model name for each AMC product and, by that time, the longest name plate that continues to be used in the industry.
In 1974, AMC AM General's subsidiary started building urban transit buses in collaboration with Flyer Industries of Winnipeg, Manitoba. The Metropolitan coach has sold 5,212 units when production ceased in 1978.
AMC Pacer, a new innovative model introduced in March 1975 and marketed as the "first wide small car", is a subcompact designed to provide the comfort of a full-sized car. Pre-production development coincides with tightening US Federal passenger emissions and automated safety regulations.
With the 1973 Arab oil embargo, General Motors canceled the Wankel rotary engine in which Pacer had been designed, as its fuel consumption exceeds conventional engines of equal strength. Therefore, existing AMC 258 and 232 cuÃ, in (4.2 and 3.8Ã, L) AMC Straight-6 engines are used in Pacer instead. Fuel economy is better than round, but it is still relatively poor because of the new focus on energy efficiency. Also, since Pacer shares some components other than drivetrain with other AMC cars, it's expensive and costs increase when sales drop sharply after the first two years.
Development and production costs for Pacer and the Matador Coupe drained capital that might have been invested in renewing the more popular Hornet and Gremlin lines, so that by the late 1970s the company faced a growing energy crisis with aging products that were not competitive in the market. contested. However, "AMC's use of cars, as far back as 1967, has the advantage of good warranty coverage... so most owners are aware of cheap car maintenance... the AMC unit became some of the best purchases in the used car market" in 1975.
Gremlin 1977 has redesigned the headlamps, grille, rear doors and fascia. For the economy in a fuel crisis, AMC offers cars with 4-cylinder Audi 4-cylinder engines that are more fuel efficient Volkswagen 2.0 (195000000000). The machine is expensive for AMC to build and Gremlin maintains a cheaper cost but also less economical 232 (L) as standard equipment.
The AMX nameplate was revived in 1977. It is a pack of sporty looks on the Hornet hatchback featuring upgrades, as well as 258 cu in (4.2Ã, L) inline six as standard with a choice of three-speed manual or four-speed manual transmission. The 304Ã, Â ° C at (5.0Ã, L) V8 engine is optional with automatic transmission.
Since all Matadors now receive standard equipment previously optional (eg power steering, automatic transmission), the "Brougham" package is dropped. Optional on the Matador coupe is a vinyl landau roof with operatic windows, and Barcelonas top-line offers a new two-tone paint.
For 1978, the Hornet platform was redesigned with a new Gremlin front-end design adaptation and renamed AMC Concord. AMC is targeting it in the emerging "premium compact" market segment, paying particular attention to driving and handling, standard equipment, trim, and interior luxury.
Gremlins borrowed the Concord instrument panel, as well as the GTX Toret Hornet AMX sporting performance package and new striping treatments for the X model.
The AMC Pacer hood is modified to clean the V8 engine, and the Sports package replaces the previous X package. With the falling sales of Matador Coupes, sedans and wagons, their 304 V8 engines (5,0Ã, L) were dropped, leaving only 258 cu in (4.2Ã,L) Inline-6 ​​(standard on coupes and sedans) and 360Ã, cuÃ, at (5.9Ã, L) V8 (optional on coupes and sedans, standard on carts). Barcelona's two-tone luxury package is offered on the Matador sedan, and the two-tone red paint is introduced as an additional option for Barcelona. Production Matador stops at the end of model year with total sales of 10,576 units. The Matador is no longer attractive as car manufacturers struggle to cope with economic woes including a continuing rise in fuel prices and double-digit domestic inflation.
In 1979, the Spirit sedan replaced GREMLIN. The new fastback version of the car, Spirit Liftback, proved successful.
In December, Pacer's production ceased after a small number of 1980s models were built to use spare parts stock.
The concession received a new front end treatment, and in their last season, the hatchback became available on the DL trim. On May 1, 1979, AMC marked the 25th anniversary of the Nash-Hudson merger with a "Silver Anniversary" edition of AMC Concord and Jeep CJ with two silver tones (Jeep then accounts for about 50 percent of the company's sales and most of their profits) ; and introduced LeCar, the US version of a small, fuel-efficient Renault 5, in the dealer's showroom.
Concord and Spirit models were dropped after 1983.
Financial development, Renault partnership
The late 1970s and early 1980s
In February 1977, Time magazine reported that although AMC had lost $ 73.8 million in the previous two fiscal years, US banks had approved a one-year extension for the $ 72.5 million credit that had expired in January; that the Shareholders have not received any dividends since 1974; and that Pacer's sales did not match expectations. However, Time recorded record sales of Jeep and backlog of AM General bus orders.
Also in 1977, Gerald C. Meyers was appointed chief and chief executive.
On March 31, 1978, AMC and Renault announced a comprehensive agreement for the manufacture and distribution of cars and trucks that would benefit both. A month later, AMC announced that it would stop production of urban standard transit buses after about 4,300 sold by AM General's subsidiaries for three years. In May 1978, the US Environmental Protection Agency ordered the withdrawal of all AMC's 1976 automobiles (except those complying with California's emissions regulations) - about 270,000 vehicles - plus Jeeps and small trucks 40,000 1975 and 1976, to correct mistakes in pollution. system settings. The total cost is estimated at up to $ 3 million - more than AMC has earned the previous quarter.
American Motors lost about $ 65 million in a conventional (non-Jeep) car for the fiscal year ending September 30, 1978, but strong Jeep sales helped the company to earn $ 36.7 million in profit on sales of $ 2.6 billion. However, AMC faces costly engineering work to bring their Jeep in line with federal directives for all 4-wheel-drive vehicles up to an average of 15 mpg -US (16 L/100 km; 18 mpg -imp ) in 1981.
A year later, with an American market share of 1.83%, the company made a deal with Renault, a nationally owned French car maker. AMC will receive a $ 150 million cash injection, $ 50 million in credit, as well as the right to start building Renault 5 in 1982. (The deal for Renault products to be sold through the AMC-Jeep dealers network was made in 1979.) In return, Renault acquired a 22.5% stake in AMC. This is not the first time the two companies have worked together. Since it did not have its own gang line model in the early 1960s, Renault embraced CKD devices and marketed Rambler cars in France.
In 1979, AMC announced a record $ 83.9 million profit on sales of $ 3.1 billion (US $ 10,452,728,106 in 2017 dollars) for the fiscal year ending in September - this despite the economic downturn, soaring energy prices, rising American unemployment, car plants shut down, and American market trends on imported cars. In October, the company's auto sales jumped 37%, while they sank 21% for the industry as a whole.
In 1980, all American Motors cars received a new rust-proofing process called the Ziebart Rust Protection Factory. These include aluminized trim screws, inner plastic fender coatings, galvanized steel in every exterior body panel, and deep-dip bathtub (up to the window line) in epoxy-based primers. AMC supports a rust protection program with the "No Rust Thru" component for 5 years into a comprehensive "Buyer Protection Plan".
The decline in Jeep sales due to the economic downturn and skyrocketing energy prices began to constrict AMC's cash flow. At the same time, pressure is increasing on the company's non-Jeep product line. The innovative and successful renovation of AMC's facial and brand auto brands is not enough in a dramatically changing competitive landscape. No longer a limited threat to the Big Three car makers (General Motors, Ford, and Chrysler). Japanese manufacturers (Honda, Toyota, Nissan) use slim production methods such as outsourcing supply chain management and Just In Time (JIT). They have a highly efficient new assembly plant in the United States. And now they are targeting the heart of AMC's passenger product line: small cars.
While Americans are turning to new imports in increasing numbers, AMC continues its struggle at the inefficient and aging Kenosha, Wisconsin facility - the world's oldest continuous car plant, where unfinished components and bodies still have to be transported across the city.
In early 1980, banks refused further AMC credits. Due to a lack of capital and resources for a truly modern new product that needs to be offered, the company switched to Renault for a $ 90 million ($ 267,310,178 in 2017 dollars) loan. In September of that year, AMC's US market share had dropped to 1.7%, and in November sales declined by 19.1%. AMC warned shareholders that the company could go bankrupt if they did not approve Renault's plan to acquire as many as 59% of the company. On December 16, 1980, AMC shareholders "strongly agreed to French-owned Renault's creation" of the main owners of their company.
In January 1982, former president of the company, W. Paul Tippett Jr. replacing Gerald C. Meyers as CEO, and Jose Dedeurwaerder, a Renault executive, became president. Dedeurwaerder brings a broad perspective on this critical moment: as an engineer and international business executive with 23 years at Renault, he is credited with streamlining many of AMC's mysterious management techniques. He also instituted important improvements in plant layout, as well as in cost and quality control.
Renault, having increased its holdings in the company several times to defend it, eventually had 49% in 1983. This development effectively ended AMC's trip as a truly American automobile company.
New ownership and new management touting a new product venture for AMC: the line of modern front-wheel drive cars, designed by Renault, to be produced in Kenosha.
product development in the 1980s
AMC Eagle
In August 1979, for the 1980 model, AMC introduced a four-wheel drive version of Spirit and Concord, calling Eagle's collective Eagle line. The Eagle quickly became one of its most famous products and was considered one of the first "crossover SUVs". Eagles use a 2-wheel drive body shell mounted on a new platform developed by American Motors in the late 1970s. Featuring an innovative full-time four-wheel drive system, this product is most in demand in snow-prone areas. Sales started strongly but declined over time. While the two-wheel drive, Spirit and Concord, both stopped after 1983 when the company concentrated on its new Renault Alliance, the Eagle survived for five years longer, though only in the form of a station wagon, into the 1988 model. single from the AMC brand from 1984-1988. All the remaining output from the company is a Renault or Jeep brand. Eagle AMC was last built on December 14, 1987.
Renault Alliance, Encore & amp; GTA
The Renault Alliance is the first combined product of the AMC-Renault partnership. Introduced in 1983, the Alliance is a front wheel car of the Renault 9 compact car slightly restyled for the American market by Richard Teague largely to comply with American safety standards and manufactured by AMC at Kenosha. The car was given a badge as Renault and several cars were brought also carry the AMC badge. It is available as a sedan with two or four doors and then as a convertible. The hatchback, introduced in 1984 and symbolized as Renault Encore, is basically the same as the Renault 11 European model. For the final 1987 model year, a higher performance version of the 2-door Alliance sedan and convertible is sold as GTA Renault. This version has a two-liter Renault engine that is exclusive to it and is not shared with Renault 9 and 11 European models.
The new model, introduced at a time of increasing interest in small cars, won several awards including Motor Trend of Car of the Year. Trend Motor states: "The Alliance is probably the best first-year car we've ever seen. Road for Renault!" The Alliance listed as number one on the Best and Cheap Car list for 1983. The positive receipts and sales of the 200,000 Alliances in 1984 were blocked by the availability of only two body styles. The Alliance is a European designed car and does not fully comply with US market demand. The distribution network is also not well supported, leading to lower quality delivered by dealers with "catastrophic consequences" for car images, as well as high warranty costs due to a quality failure that greatly affected sales from 1985 to the end of production. in 1987.
The Encore model was renamed the Alliance Hatchback in 1987. The GTA alliance and production ended in June of that year while the Renault models 9 and 11 continued until the 1988 model year in Europe, replaced by the new Renault 19.
Jeep
More beneficial for the future of AMC is the introduction of the new compact Jeep Cherokee and Wagoneer models in the fall of 1983 for the 1984 model year. The popularity of this downsized Jeep pioneered a new market segment to be defined as an SUV (sport utility vehicle). They initially used AMC 150 C.I.D. (2.5L) OHV four-cylinder engine with carburetor, and General Motors built 2.8 Ã, ((171Ã, Â ° C) in the V6 carburetor is optional In 1986, throttle-body injection replaced the carburetor on a 2.5 I L4 A 2.1 liter Renault (128 Â ° c) in the Diesel Turbo-Diesel I4 is also offered.Started with the 1987 model, a 4.0 L I6 engine (244Ã, Â ° C), derived from 258 cuÃ, which is older in (4.23a, L) I6 with new head design and electronic fuel injection system, replacing the converted V6.New Motors "American Motors is designed with the help of Renault and incorporates the Renault-Bendix (Renix) component for fuel management and ignition The 4.0 developed a remarkable reputation for reliability and toughness.Chained by Chrysler after purchase, the design continued to be improved and refined until its discontinuation at the end of the 2006 model year. The 4.0 engine saw extensive applications in XJ Cherokees and Wagoneers, Grand Cherokees, and Wranglers, and many of these machines see (or see) a very long life, several times over 300,000 mi (480,000 km). XJ Cherokee itself was built by Chrysler until the end of model year 2001 in the US and up to 2005 in China.
Three other designs continue to be used after the purchase of Chrysler: Grand Wagoneer-sized luxury SUV, full-size J-series pickup, built on the same chassis as the previous SJ model, Wagoneers and Cherokees originating from 1963 with AMC Pickup compact 360 in cuà (5.9Ã, L) V8 and Jeep Comanche (MJ), which debuted in 1986. Unlike most sport utility vehicles based on customized pickup truck designs, the Cherokee XJ SUV comes first and Comanche is designed as a pickup truck version later.
Full-sized pickup production ceased after 1987. The Grand Wagoneer and 360 V8 engines were dropped after 1991 (the last American-made car engine used for fuel delivery), and Comanche bowed after 1992.
1985 and final purchase
Market and management changes
There was a significant change in 1985 as the market moved away from small AMC models. With relatively cheap fuel again, buyers are turning to more powerful cars and AMC is not ready for this development. Even Venerable Jeep CJ-5 was dropped after 60 Minutes TV news magazine exposed the rollover tendencies in extreme conditions. AMC is also faced with an angry labor force. Labor avenged, and reports circulated about vehicle sabotage on the assembly line due to failure to receive the promised wage increase. There was a rumor that the old Kenosha plant had to be closed. At the same time, Chrysler has a hard time meeting the demand for the M-body back-drive model (Dodge Diplomat, Plymouth Gran Fury and Chrysler Fifth Avenue). Because they are assembled using the old "gate and money system" and tools can be easily moved, Chrysler can supply components and quality control while AMC assembles cars. Therefore, Lee Iacocca and Joe Cappy reached an agreement to use some of AMC's unemployed plant capacity in Kenosha.
These problems arose in the midst of a transfer of power at AMC from Paul Tippet to a French executive Pierre Semerena. The new management responded by tactical measures by selling the Horse Horse Products Division in the garden and signing an agreement to build the Jeep in the People's Republic of China. The Pentagon has a problem with AM General, a significant defense contractor, run by a company owned by most French governments. The US government will not allow foreign governments to have a significant share of important defense suppliers. As a result, AM's profitable general division is sold. Another milestone is the departure of Dick Teague: vice president of AMC design for 26 years, he is responsible for many designs of Jeep and AMC including Rambler American, Javelin, Hornet, GREMLIN, Pacer, and Matador coupe.
Problems in Renault and killing
Major shareholder American Motors, Renault, itself suffered financial problems in France. Investment at AMC (including the construction of a new Canadian assembly plant in Brampton, Ontario) forced home trimming, resulting in the closure of several French factories and mass layoffs. Renault has only three alternatives to its ownership in America: (1) They can declare AMC to be officially bankrupt and lose its investment; (2) They can make more money, but Renault's management considers AMC as a bottomless pit; or (3) AMC can be put up for sale and the French can recover some of their investment. Against this withdrawal, Renault chairman Georges Besse continues to fight for the future of French companies in the North American market; pointing to the completion of North America's newest and most advanced automobile assembly plant, later known as Bramalea Assembly, as well as the recent introduction of a 4.0 L and 2.5 L engine fueled thoroughly. In addition, Jeep vehicles riding an unprecedented demand surge. For Besse and others, AMC is on track to make a profit.
However, on November 17, 1986, Georges Besse, who had a high profile among French capitalists, was killed by Action Directe, a clandestine militant extremist group that was variously described as communist, anarchist and Maoist, who expressed strong sympathy for the proletariat and aspirations of the Third World. The killings were committed by members of the Commando Pierre Overney Commando Action (named after a Maoist militant killed by Renault factory guards). The group claimed the killing in retaliation for Besse after sacking tens of thousands of workers - 34,000 from French aluminum producers PUK-PÃÆ' Â © chiney and 25,000 from Renault.
Chrysler buys AMC Stock
Under Renault's executive pressure following Besse's death, Renault's new president Raymond Levy set out to improve employee relations and release the company from his investment at American Motors. Renault owns 46.1% of AMC's outstanding shares.
The previous deal between Chrysler and AMC in 1985, in which AMC will produce a large rear-end car M-body car chassis for two years from 1986-88, feeds rumors that Chrysler will buy AMC. According to head of manufacturing for Chrysler at the time, Stephan Sharf, existing relationships with AMC resulted in cars for competitors facilitating negotiations.
On March 9, 1987, Chrysler agreed to buy Renault's stake in AMC, plus all remaining shares, about US $ 1.5 billion (US $ 3,231,107,206 in 2017 dollars). AMC became the Jeep-Eagle division of Chrysler. It was the Jeep brand wanted by Chrysler CEO Lee Iacocca - specifically the ZJ Grand Cherokee, which was being developed by Jeep engineers, which proved to be very profitable for Chrysler (a permanent signboard manufactured today). However, the purchase includes other attractive sweeteners for Chrysler. Among them is a new world-class manufacturing plant in Bramalea, Ontario, which offers Iacocca unprecedented opportunities to increase its company's production capacity at a fire selling price. AMC has designed and built factories to anticipate the construction of the Eagle Eagle based on Renault 25. The addition of a lucrative acquisition is the AMC dealer network (an addition that strengthens Chrysler's retail distribution - many AMC dealers turn to Chrysler product sales); and AMC's underrated organizational and management talents - which Chrysler quickly assimilates (many of Chrysler's leading engineers and executives are former AMCs). AMC was renamed to Jeep Eagle Corporation (a subsidiary of Chrysler) August 25, 1988 and fully merged on 29 March 1990.
The sale came at a time when the automotive press was excited about the ranks of the proposed Renault, Eagle, and Jeep 1988 vehicles, and reported that the financial prospects for the small car were on the rise. AMC's quarterly results for all of 1987 were positive, Chrysler bought AMC at a time when the company appeared to be in a very good financial position with its new product line.
The sale marked Renault's withdrawal from the North American market (excluding Mexico) in the 1988 model. However, the French company has returned to the market with the next purchase of a controlling stake worth US $ 5.4 billion at Nissan in March 1999. Unlike the partnership AMC/Renault, Carlos Ghosn, CEO and President Renault from France and Nissan. Japan, is guiding the Renault-Nissan Alliance away from national identity. Similarly, Mitsubishi Motors, which established a joint venture agreement in 1970 with Chrysler expanded in 1985 to a 50-50 joint venture to manufacture passenger cars in the United States Diamond-Star Motors until 1993 when Chrysler sold its Mitsubishi Motors ownership stake to be controlled by Nissan in 2016 and thus become part of the Renault-Nissan-Mitsubishi Alliance.
Business heritage
American Motors was forced to continue to innovate for 33 years until Chrysler absorbed it in 1987. Lessons learned from this experience are integrated into companies that buy AMC. Organizations, strategies, and some key executives allow Chrysler to gain excellence in competition. Even today, the lessons learned from the AMC experience continue to benefit other companies in the industry. There are a number of inheritances from AMC's business strategy.
AMC has the ability to formulate a strategy that is often evaluated by industry critics as a "stroke of brilliance". According to Roy D. Chapin Jr., AMC realizes that they are fighting the industry giants, so to compete successfully they must be able to move quickly and with ingenuity. An important strategy practiced by AMC is to rely on outside vendors to supply components where they have different benefits. This approach is finally accepted in the U.S. automotive industry, but only after each of the Big Three fails to try to be independent.
The smallest domestic car producer does not have a large R & D budget from General Motors, Ford, and foreign competitors... [so] AMC places R & D emphasis on strengthening the lifecycle of its main product (especially Jeep). " In 1985, AMC started product life cycle 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 improve product development process.
Another example of AMC's agility is the ability of management to extort money from reluctant bankers, even in the face of bankruptcy. This core capability helps save the company from destruction and after every obstacle, give it the ability to keep it operating. Ironically, AMC has never been stronger than it was before its destruction.
AMC managers anticipate important trends in the automotive industry. It preached fuel efficiency in the 1950s, long before most car buyers demanded it. Led by Rambler AMC and several European cars, small car innovations reduced the Big Three's market share from 93% in 1957 to 82% in 1959. The company inherits foreign manufacturing and sales partnerships from Nash and continues to develop business relationships, decades before some great deal of international consolidation among car makers took place. AMC is the first US automaker to make a contract of ownership with foreign automakers, Renault. Despite its small size, AMC is able to introduce a range of industry innovations. Started in 1957, AMC was the only US manufacturer to completely immerse all car bodies in primer paints for rust protection, until competitors adopted this practice in 1964. Even one of the most expensive new AMC product investments (Pacer ) has formed many features that are then adopted by the automotive industry worldwide. These include aerodynamic body designs, space-saving interiors, aircraft-style doors, and large greenhouses for visibility. AMC is also effective in other areas such as marketing by introducing low-level financing. AMC's four-wheel drive vehicle builds the foundation for the modern SUV market segment, and the "classic" Jeep model continues to be the benchmark in this field. Roy D. Chapin leverages his experience as a hunter and fisherman and markets the Jeep brand successfully to people with similar interests. The brand develops a continuous attraction.
AMC's purchase is instrumental in reviving Chrysler. According to Robert Lutz, former President of Chrysler, the acquisition of AMC is a big and risky venture. The purchase is part of Chrysler's strategic "retreat-cum-diversification" plan that he claims has no proper focus. Initially the goal was to get the world-famous Jeep brand. However, Lutz found that the decision to buy AMC turned out to be a gold mine for Chrysler. At that time, Chrysler's management was trying to find a model to improve the structure and operation, "something that will help to make our minds unaware and think beyond the old paradigm that we are so familiar with ." In this transformation, "Chrysler AMC taking is one of the great moments of all time in the corporate serendipity " according to Lutz "which most clearly plays a key role in showing how to achieve change."
According to Lutz (1993), while AMC has a problem section, it's far from being a bunch of "dead-brain losers". He described the "troops" at AMC more like the Marines of Wake Island in combat, "with virtually no resources, and against far superior enemies, they were able to launch a series of impressive new products". After the first reaction with anger toward the purchase, Chrysler's manager immediately anticipates the benefits. To further strengthen the organizational competencies held by AMC, Lee Iacocca agreed to retain previous AMC units, such as engineering, fully intact. In addition, AMC's principal engineer, FranÃÆ'§ois Castaing, became head of all engineering at Chrysler. In an unthinkable strategic move, Castaing really unravels the deeply entrenched Chrysler group. In their place the "AMC platform team" is implemented. These are interrelated cross-functional groups that are responsible for the entire vehicle, which is in contrast to the highly functional Chrysler structure. In this capacity, Castaing's strategy is to eliminate the administrative overhead bureaucracy. This move shifts the corporate culture and the restless veteran executive who believes that Chrysler's reputation as an "engineering company" is being destroyed. However, according to the popular press, in the 1980s, Chrysler's reputation was really shot, and in Lutz's view, it was just the dramatic action that would change that. In short, the purchase of Chrysler AMC laid a vital foundation to help rebuild the strategy for its revival in the 1990s.
Top managers at Chrysler after the purchase of AMC seem to have made a mistake similar to what AMC did. For example, Chrysler invests heavily in untested new models while not maintaining its profitable high-volume line.
After the merger of DaimlerChrysler, the combined company also experienced the problem of having too many platforms. It also failed to achieve synergy by sharing components and from Chrysler's paperless design capabilities and suppliers. The Mercedes-Benz managers are very protective of their designs and components and "sophisticated R & D is clearly under German direction." This policy increases production costs. They can observe the Nash and Hudson merger experience designed to achieve manufacturing efficiency and savings from component division. The first product to incorporate the technology and engineering of Chrysler and Mercedes under the name Mercedes in 2006, eight years after DaimlerChrysler AG was created.
The influence of AMC also continues at General Motors. GM recruited a new executive team to transform itself from near bankruptcy in the early 2000s. Among the new strategists at GM is Lutz who brings an understanding of the importance of passion in product design. Lutz implements new thinking in GM that incorporates systems and structures derived from lean operations and AMC focus.
Renault applies the lessons it learned from its investment in AMC. The French company takes a parallel approach as it did with the initial ownership of AMC and applied it to revive Nissan cars that lost money in Japan.
In 2009, in an agreement brokered by the Obama administration, Italian car maker Fiat began the takeover of the white knight Chrysler to rescue the troubled car maker from liquidation. The deal was directly compared to the AMC-Renault agreement; some commentators noted the irony that Chrysler now faces the same fate that AMC faced 30 years earlier, while others expressed skepticism about whether the Italian company could save Chrysler, given how the Renault deal failed. However, there is a major difference between the two:
- Fiat CEO Sergio Marchionne became Chrysler's CEO as part of the deal and soon began to integrate globally the assets and lines of Fiat and Chrysler products;
- the Fiat-Chrysler merger does not confront the political opposition of AMC-Renault because Fiat is entirely private and independent and the US government supports the merger;
- while AMC proved to be a constant money loser for Renault, Chrysler returned to profitability quite quickly and has since become an important source of revenue and profits for Fiat, which has struggled to maintain volume and profitability amid Europe's debt crisis..
The two companies will then fully merge to create Fiat Chrysler Automobiles by 2014.
Product legacy
Passenger car
Chrysler revived the name "Spirit" dropped by the AMC after 1983 for use on one of the platform A, (Dodge Spirit) cars from 1989-1995. The Renault Medallion is planned to be sold as the Eagle Medallion in 1988 and 1989. A Renault/AMC concept, the Summit, was produced by Mitsubishi Motors starting in 1989. The newly planned 1988 Renault Premier 1988 joint development effort between American Motors and Renault, and for that factory Brampton Assembly (Brampton, Ontario - originally called Bramalea Plant) was built, sold by Chrysler as the Eagle Premier from 1988 to 1992, with the Dodge Monaco variant available from 1990-1992. The full-sized Premier Platform is much more advanced than anything Chrysler built at the time. After several reengineering and redesigning into the LH Chrysler code, Eagle Premier went on to form the backbone of Chrysler's passenger car line during the 1990s as Chrysler Concorde (a revived model name briefly used by Plymouth in 1951 and 1952), Chrysler New Yorker, Chrysler LHS, Dodge Intrepid, and Eagle Vision. Plymouth almost received their own low profile version of the LH platform, which would be called an Accolade, but Chrysler decided to get used to this idea shortly before the start of LH production. The Chrysler 300M is also a premiere/LH-originated car and initially has become the next generation Eagle Vision, until the Eagle brand was dropped after 1998. The LH platform was then reengineered, using the Mercedes-Benz component, into the currently supported Chrysler LX Platform Chrysler 300, Dodge Charger and Dodge Challenger.
Jeep vehicles
Chrysler marketed the SJ Jeep Grand Wagoneer until 1991, making it virtually unchanged from the last AMC rendemen before purchase. The Jeep Comanche pickup truck remained until 1992, while Cherokee remained until 2001 in the US (XJ Cherokee was produced in China until 2006 as Cherokee 2500 [2.5L] and Cherokee 4000 [4.0L]). Although not introduced until 1993, the Jeep Grand Cherokee was originally a vehicle developed by AMC.
AMC traces stay within. AMC's Toledo, Ohio plant continues to produce Jeep Wrangler and Liberty, as well as parts and components for Chrysler, Dodge, and Jeep vehicles (although Toledo Machining and Forge closed in 2005). The main AMC plant in Wisconsin, though severely downsized, operated as Kenosha Machine Plant, manufactures engines for several Chrysler Group products including Wrangler. The plant was closed as part of a restructuring of Chrysler's post bailout in October 2010. The 4.0 liter engine (242Ã, cuÃ, in) was used until the 2006 model year by DaimlerChrysler in Jeep Wrangler. AMC's technologically advanced Bramalea Assembly and Stamping Plant in Brampton, Ontario later produced LX-cars - Dodge Charger and Chrysler 300, and the now-stopped Dodge Magnum.
In terms of AMC-related parts, some were used until the end of 2006, when the Jeep Wrangler (the last new product introduced by AMC before the Chrysler deal) was still using the AMC Straight-6 engine in some models, as well as handling the hidden "rowing" doors used since 1968 model by AMC. Both have been retired when the Wrangler is completely redesigned for the 2007 model year.
AM General, sold by American Motors in 1982, is still in the business of building a Humvee designed for the American military and American military allies. AM General also built an abandoned civilian variant - H1 - and produced a companion coming from Chevrolet Tahoe, H2, under contract for GM, which acquired rights to the Hummer civilian brand in 1999. GM was forced out of Hummer in early 2010 as part of a bankruptcy restructuring after offering it for sale, but failed to find a suitable buyer.
Although Chrysler introduced a new logo for its brand in the 1990s and again in 2010 after Fiat Group took over the company, Jeep still uses the AMC era logo that was introduced shortly after the purchase of the AMC brand in 1970. Until the purchase of Chrysler, Jeep logo also featured emblem AMC.
Legacy divisions and facilities
Former division
Throughout its history, American Motors bought or created, then sold and detached from some special divisions, some of which continue today:
The Kelvinator, the Nash-Kelvinator division, was sold by American Motors in 1968 to White Consolidated Industries and later became part of Electrolux. Kelvinator Company is still in business.
Jeep is now the Chrysler Group brand. Many Jeep models maintain the mechanical and stylistic specifications developed by the AMC until the 1990s or even through the first decade of the 2000s.
AM General is now owned by MacAndrews & amp; Forbes Holdings and Renco Group. It was organized as an LLC in August 2004.
Wheel Horse Products Division is now owned by Toro Company.
Jeep Beijing was established by AMC in 1983 to manufacture Jeep for the burgeoning Chinese market; the joint venture was inherited by Chrysler and continued under the new Chrysler ownership. The venture's AMC trials are the subject of a well-known book about the venture, "Beijing Jeep", by James Mann.
Facilities
AMC World Headquarters (1954-1975) is located on 14250 Plymouth Road in Detroit and is widely known as the Plymouth Road Office Center (PROC) . In 1975, AMC moved its headquarters from a facility on Plymouth Road to a newly built building on Northwestern Highway in So
Source of the article : Wikipedia
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