AMC

American Motors Corporation (AMC) was an American automobile company, formed in 1954 by the merger of Nash-Kelvinator and Hudson. At the time, it was the largest corporate merger in U.S. history, valued at $198,000,000. more...

American Motors was purchased by Chrysler Corporation on March 2, 1987, which discontinued the brand name but continued some of the models under the Eagle marque.

History

Formation

The company traced its history to 1897 when Thomas B. Jeffery built his first automobile prototype and acquired the former Sterlin Bicycle Factory in Kenosha, Wisconsin in 1900 to produce "Rambler" cars. The first production Rambler rolled out of the factory in March 1902, making it the second passenger car to be mass produced (over 1500 of the same make and model) in the U.S., one year after Oldsmobile and one year ahead of Ford.

After the founder of the company died in 1910, Charles T. Jeffery, his son, assumed control. The name of the car was changed to "Jeffery" in 1914 to honor its founder. Charles Jeffery survived the sinking of the RMS Lusitania, a luxury liner torpedoed in 1915, and subsequently resolved to spend the rest of his life in a more enjoyable manner. Charles W. Nash, who had resigned from General Motors, purchased the Thomas B. Jeffery Company in August of 1916, renaming it the Nash Motors Company.

In 1954, Nash Motors merged with Hudson to form AMC, merging with Kelvinator Appliance along the way. George Mason, the architect of the merger scheme, believed that the only chance of survival for America's remaining independent automakers was for them to join forces in one large, mutibrand auto giant, able to challenge General Motors, Ford, and Chrysler as an equal. Mason's plan was for Studebaker and Packard to also join forces, and then, after the companies had settled down, for the two combined companies to merge into one under the American Motors banner. (NOTE: AMC authority Pat Foster challenges the credibility of this.)

Packard Motor Car Company did acquire Studebaker as planned, in 1954, and the resulting Studebaker-Packard Corporation cooperated with American Motors for a year or two, selling Packard engines to its would-be partner until a contractual dispute ended the alliance in mid-1956. But the final planned merger never happened. Studebaker-Packard was devastated by the loss of millions of dollars in Studebaker's Pentagon contracts after the Korean war ended (the contracts were awarded to GM). George Mason died in 1954, and George Romney killed any final hopes of a merger.

From there, American Motors was forced to compete on its own. Studebaker-Packard went out of business in the 1960s, by which time most of the post-war startup car makers were also gone. Only the Big Three and AMC remained.

Products

American Motors combined the Nash and the Hudson product lines under a common marketing strategy and dealer network beginning in 1955. The fast selling Rambler model was sold under both the Nash and Hudson labels in its first year and would eventually become the mainstay of the company. The preexisting Nash product line was continued and the Nash Statesman and Ambassador were lightly restyled to become the "new" Hudson Wasp and Hornet. Hudson aficionados disliked the soft handling and ride of the "Hash" models and sales quickly plummeted. The only Hudson parts on the badge-engineered Nashes were the instrument cluster and engines. Hudsons continued to use Hudson L-head sixes except, while sharing the same Packard (and later American Motors designed) V8 engines as their Nash counterparts.

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