January 14, 1954, marks the anniversary of the merger of the Nash-Kelvinator Corporation and the Hudson Motor Car Company. The merger challenged the Big Three in the automotive industry: General Motors, Ford, and Chrysler to become the fourth-largest automaker in the United States.
The merger was led by Nash-Kelvinator, a car manufacturer and appliance company, CEO George Mason. After Mason passed away from health complications, his assistant George Romney took over. The corporation was based on Plymouth Road on the west side of Detroit, and then relocated to Southfield in 1975.
The convertible Rambler American was seen as the image of American fun. The American Motor Company challenged the Big Three by offering smaller, more compact cars to the American audience compared to bulkier, heavier models. While the Nash part of the company focused on its Rambler line, Hudson focused on building bigger, more full-sized cars. However, due to the recession in the late 1950s, demand for larger cars declined, and both Nash and Hudson ceased production. Due to the rise in sales of foreign cars in the United States, AMC began to focus on smaller, fuel-efficient vehicles, making the Rambler and Metropolitan independent brands focused on compact, practical cars.
In 1960, AMC became the third most popular auto brand, due to the success of the Rambler. The company sold more than 486,000 cars a year, including the Rambler, Hornet, Javelin, Gremlin, and the Pacer. The following year, the Metropolitan ended its line. In 1968, the company’s appliance sector was sold off, and the corporation decided to focus solely on automobiles.
In 1965, the Rambler name was no longer used, and the AMC name became the marquee for all models produced. The company continued to thrive with the Javelin, AMX, Gremlin, and Pacer models. By 1970, AMC had acquired Kaiser Jeep, but a large part of the company was acquired by the French automaker Renault in the 80s. As the company faced struggles in the 1980s, Renault’s stock was acquired by Chrysler. Chrysler revealed that it was interested in acquiring AMC to gain access to Jeep, and halted production of AMC models. AMC’s last model, the Eagle Wagon, was released on December 14, 1987.
While the American Motor Company ultimately could not compete with the Big Three, the company is still remembered for its persistence and ingenuity. Author of Storied Independent Automakers: Nash, Hudson, and American Motors, Charles K. Hyde wrote, “It was not surprising that American Motors went out of business in 1987. The company’s survival for a third of a century was more remarkable.”
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