Although related directly to the previous Rebel models, AMC began promoting the Matador as more than a change in name with a slight facelift to reposition the line in the highly competitive intermediate-car segment among consumers.

[7] Following the design introduced by General Motors for the 1973 Third-generation GM A platform vehicles known as the "Colonnade" style intermediates, the Matador coupe was no longer a two-door pillarless hardtop.

The traditional muscle car market segment sharply decreased in 1971, with ever-higher insurance rates and ever-more power-robbing changes required on engines forced to operate on lower octane, lead-free gasoline.

American Motors started with an emphasis on quality and durability by focusing on its component sourcing, improving production that included reducing the number of models, mechanical upgrades, and increasing standard equipment.

AMC dealers evaluated this "revolutionary" coverage as successful in bringing buyers into the showroom, providing a sales tool that other brands did not offer, and the quality of the cars resulted in improved ownership satisfaction.

Mark Donohue drove a two-door hardtop prepared by Roger Penske on the road course at Riverside, California, on 21 January 1973, lapping the entire field to win this NASCAR Cup Series race.

The two-door hardtop Matador of the previous series was replaced with an all-new fast-back coupe for 1974, a wholly restyled model with no appearance similar to the new sedan and wagon.

The interior of all body styles (including the radically different coupe) featured an all-new fully padded and safety-shaped dashboard with three squared pods for housing the instruments in front of the driver (indicator lights, fuel gauge, and water temperature to the left, 120 mph (190 km/h) speedometer at the center, and an electric clock or fuel economy gauge on the right) as well as a new horizontal radio/sound system design in the center of the dash.

[47] A road test by automobile journalist Vincent Courtenay of the 1974 Matador station wagon "praised its performance, handling, and fuel economy considering its size and 360 CID engine."

[66] This special trim package included velveteen crush fabric upholstery on the individually reclining front seats, vinyl roof, and coordination of colors both inside and outside.

The coupe was designed under the direction of AMC's vice president of styling, Dick Teague, with input from Mark Donohue, the famous race car driver.

AMC's styling department had greater freedom because of a decision to design the new Matador strictly as a coupe, without the constraints of attempting to have the sedan and station wagon versions fit the same body lines.

[43] The bodywork flowed underneath the coupe's broad grille with tunneled headlamps in the rear with an uninterrupted design with the four round taillamps and an indented license plate area, while the bumpers were free-standing with rubber gaiters concealing the retractable shock absorbers.

[82] This was also the first time in AMC's designer models where the fashion expert influenced both the interior and exterior details with the objective "for the entire car to emphasize a carefully wrought harmony of colors, trim, and fabrics".

[84] The interior was a Cassini hallmark featuring a unique black fabric with copper metal buttons on the individual adjustable and reclining front seats as well as on the padded door panels.

The special items were: individual reclining seats in velveteen crush fabric with woven accent stripes, custom door trim panels, unique headliner, 24 oz (680 g) carpeting, special "Barcelona" medallion on glove box door and front fenders, two-tone paint, headlight bezels painted accent color, two-tone finished 15-inch slot styled wheels, body-colored front and rear bumpers with rubber guards and nerf strips, landau padded vinyl roof, opera quarter windows with accents, dual remote control mirrors painted body color, black trunk carpet, rear sway bar, GR78x15 radial whitewall tires.

After extensive testing of the special police models offered by GM, Ford, and Chrysler, the LAPD chose the AMC Matador because they "out-handled and outperformed all the other cars".

[103] The LAPD police Matadors included among other special equipment: T-2 can lights, a five-channel Motorola Mocom 70 VHF radio, a Federal PA-20A Interceptor siren, and a "Hot Sheet Desk" with a Roster gooseneck lamp.

[140] Along with the vehicle modifications needed for Australian standards and market requirements, changes included the use of locally sourced parts and components such as seats, carpeting, headlamps, side-view mirrors, heaters, and unique "R"-logo wheel covers.

Continuing the concept of VAM's version of the AMC Rebel, the Mexican Matadors were only available as a single trim level and in four-door sedan and two-door hardtop forms in their initial year.

Standard equipment consisted of four-wheel manual drum brakes, manual steering, 170 bhp (127 kW; 172 PS) gross at 4,600 rpm 252 cu in (4.1 L) I6 engine with Carter WCD two-barrel carburetor and 9.5:1 compression ratio, fully synchronized three-speed manual transmission with column shift, 10-inch heavy-duty clutch, 3.54:1 rear differential gear ratio with manual transmission, 3.07:1 rear differential gear ratio with automatic transmission, electric two-speed wipers, electric washers, rectangular full-length 200 km/h (120 mph) speedometer, electric analog clock, collapsible steering column with built-in ignition switch, luxury custom steering wheel, courtesy lights, cigarette lighter, dashboard ashtray, locking glove box, wide individual front seats (hardtop), front bench seat (sedan), two-point front seatbelts, front and rear side armrests, dual rear ashtrays, single round dome light (sedan), dual C-pillar dome lights (hardtop), dual coat hooks, bright molding package, luxury wheel covers, and driver's side remote mirror.

The Brougham included as standard equipment power steering, three-speed automatic transmission with a floor-mounted shifter (the same unit as the U.S. Rebel Machine models), a center console with locking compartment (also shared with the Rebel Machine), individual high-back bucket seats (shared with the VAM Javelin), bright trim for pedals, heater, AM/FM stereo radio with four speakers, tinted windshield, and a remote-controlled driver's side remote mirror.

The Classic AMX sported VAM's in-house five-spoke wheels with volcano center caps and trim rings, a blacked-out grille, and a rally stripe surrounding the entire length of the car with an integrated AMX emblem on the right corner of the trunk lid; the Classic Brougham had a standard vinyl roof cover with its respective moldings, wheel covers (new design for the year), standard grille and "Brougham" emblems over the C-pillar bases.

The Classic AMX showcased a three-spoke sports steering wheel, high-back fold-down individual bucket seats, a center console with a locking compartment, a floor-mounted gearshift, and an AM/FM radio.

The Classic DPL obtained the new one-piece grille design with rectangular parking lights, following the US-made versions, as well as featuring new seats and door panels.

All three versions shared the upgrades of electronic ignition, a vacuum gauge in place of the electric clock, a 282 cu in (4.6 L) I6 with a lower 7.7:1 compression ratio, and Holley 2300 two-barrel carburetor.

U.K. models also received a locally built and fitted "walnut burr" fascia that replaced the AMC black plastic cluster surround, as had been the practice for previous U.K.-market Rebels and Ambassadors.

The large-sized Matador was no longer attractive to customers demanding more economical cars as fuel and money became increasingly worrisome problems after the 1973 oil crisis and the continuing double-digit domestic inflation.

Lacking the financial resources for a complete redesign, AMC dropped the large Ambassador after 1974, while the Matador was discontinued after 1978, around the same time as Ford moved their full-size nameplates to a smaller platform.

It was presented as combining an "easy-to-handle size with a roomy sumptuous interior" and in contrast to the Matador coupe, the "overall styling was pleasant ... would not offend anyone"[190] This was the first full line of economical, compact-sized cars with luxurious trim, features, and comfort levels previously available only in larger automobiles.