This was long after the retirement of the Ford Pinto that suffered from stories about exploding gas tanks, as well as the Chevrolet Vega with its rusting bodies and durability problems with its aluminum engine.

[8][9] The idea for the Gremlin began in 1966 when design chief at American Motors, Dick Teague, and stylist Bob Nixon discussed the possibility of a shortened version of AMC's compact car.

"[18] The Gremlin's wider stance gave it "a stable, quiet and relatively comfortable ride—for the two front passengers", for whom, by small-car standards, there was more than average interior width, seat room, and legroom.

Later, European and Japanese manufacturers similarly created different body styles on one compact car chassis by extending or curtailing the trunk (e.g. Volkswagen's Jetta and Golf models).

[22][23] The Gremlin's hatchback design was also needed to make the car stand out in the competitive marketplace, and according to Teague: "Nobody would have paid it any attention if it had looked like one of the Big Three" automobiles.

"[31] A nationwide survey based on owners driving their 1970 AMC Gremlins over 1,350,000 miles (2,172,614 kilometres) conducted by Popular Mechanics concluded that the unique styling attracted many buyers, but economy topped their likes.

[44] Marketing for the Gremlin included tie-ins with a "Home Value Days" supplement designed to promote 18,500 hardware stores in Popular Science[45] and The Reader's Digest[46] as well as with Colgate-Palmolive's campaign using Willie Mays to "Help Young America" in Jet[47] and Ebony.

[49] Struggling under stagflation and an inflationary economy, all the domestic subcompact cars' sales slumped compared to the industry's record-breaking 1973 model year.

The grille shape became a stretched hexagon and included in its insert two opposing loops stacked atop each other and housing new rounded parking/turn signal lights.

1977 changes included redesigned sheet metal for the first time in the Gremlin's now 8-year history: revised hood, shorter front fenders, new bumpers, taller glass tailgate, enlarged taillights, and rear license plate now covering the fuel filler.

The X package returned as a $189 option, with a new striping pattern that ran straight back from the front fenders and crested upward over the rear wheels.

[50] It was reserved for the Custom version of the Gremlin because the expense of acquiring the rights to the engine meant that AMC could not afford to make it standard equipment.

[51] A new "Custom" model featured either the four- or six-cylinder engine with a standard four-speed manual transmission and new vinyl bucket seats, wheel lip moldings, and other trim upgrades.

[51] The Gremlin's body shape had not changed appreciably in its nine years of production, and other more advanced subcompacts, lighter in weight, with more doors, better interiors, and front-wheel drive, had appeared on the market.

[54] Although front-heaviness was generally thought to compromise the handling, Tom McCahill wrote in Mechanix Illustrated that the Gremlin was "fast and easy", with a comparatively stiff ride because of the shortened rear springs.

The torque of their 232 cu in (3.8 L) 6-cylinder Gremlins gave a big advantage on the faster tracks like the Daytona International Speedway, where they were often more than a match for the BMW 2002, Alfa Romeo GTV, Datsun 510, Ford Pinto, Mercury Capri, and Opel Manta.

[61] He and other drivers campaigned Gremlins painted in the hash red, white, and blue pattern that AMC had adopted as its corporate race livery.

[63] The rule changes for the 1972 Pro Stock season opened drag racing for smaller cars fitted with small-block engines and AMC was committed to fielding the Gremlin.

[66] At the 2006 World Power Wheelstanding Championships (not a race, but a "wheelie" contest), Brian Ambrosini's specially modified 1974 Gremlin took second place.

Although the Gremlin was introduced to the U.S. and Canadian markets in 1970, VAM continued assembling its version of the Hornet still bearing the name Rambler American as its smallest, least expensive car until 1974.

VAM Gremlins were basic economy cars with a full synchromesh manual 3-speed transmission, heavy-duty clutch, manual four-wheel drum brakes, manual steering, front sway bar, 3.31:1 rear gear ratio, rigid four-bladed cooling fan, collapsible steering column with anti-theft lock, base steering wheel, side marker and hazard lights, column-mounted shifters only, two-tone padded dashboard with silver-colored front surfaces, electric wipers and washers, monaural AM radio, cigarette lighter, front and rear ashtrays, locking glovebox, folding bench seats, two-point front seatbelts, flip-open rear side vents, roof rack, full carpeting with driver's side rubber mat, padded sun visors, sound-insulating cardboard-type headliner, dual coat hooks and round dome light.

All VAM Gremlins used AMC's three-pod instrument cluster from the domestic-built Hornet with a blank in the third gauge position from the factory, which could be equipped with a universal tachometer or clock as dealership options.

[76] The 1976 VAM Gremlin X also came with an interior featuring the "Navajo" pattern cloth upholstery that was optional on AMC's Pacer DL models built for the Canadian and U.S.

Both versions included revised gauges with a 160 km/h speedometer, new side panel designs, longer folding sun visors, and a styled round dome light lens.

In 1972 University of California, Los Angeles researchers won a nationwide Urban Vehicle Design Competition when they modified a 1972 AMC Gremlin to run on hydrogen.

Lacking sophisticated electronics and injection systems, the carburetor was a modified propane unit and the 100-litre (26.4 US gal) "thermos"-type hydrogen tank gave the Gremlin a range of 160 miles (257 km).

To evaluate non-petroleum fuel and measure mechanical wear under mostly short city driving, a 1970 Gremlin with AMC's 232 cu in (3.8 L) engine operated successfully on methanol for ten years and 46,250 miles (74,432 km).

[105] Inventor "Cotton" Whatley of Wichita Falls, Texas, offered an unknown number of modified electric Gremlins for sale through various dealerships between 1973 and 1978.

A pronounced crease started from the mid-body section and wraps over the roof while the rear quarter panels feature bulges around the wheel well openings.

"Bill Clinton drove the back roads of Northwest Arkansas in his green AMC Gremlin"[125] during his 1974 campaign for the only attempt he made for a seat in the United States Congress.