Mason, the architect of the merger, believed that the survival of the U.S.'s remaining independent automakers depended on their joining to form one multiple-brand company capable of challenging the Big Three as an equal.

[7] The reasons for the merger between Nash and Hudson included helping cut costs and strengthen their sales organizations to meet the intense competition expected from autos' Big Three.

[8] One quick result from the merger was the doubling up with Nash on purchasing and production, allowing Hudson to cut prices an average of $155 on the Wasp line, and up to $204 on the more expensive Hornet models.

Company officials were confident in the changing market and in 1959 announced a $10 million (US$104,520,548 in 2016 dollars[19]) expansion of its Kenosha complex (to increase annual straight-time capacity from 300,000 to 440,000 cars).

On April 1, 1959, American Motors and Sonotone Corporation announced a joint research effort to consider producing an electric car that was to be powered by a "self-charging" battery.

Abernethy believed that American Motors's reputation of building reliable, economical cars could translate into a new strategy that could follow AMC buyers as they traded into larger, more expensive vehicles.

[36] The continuing quest "in the business world's toughest race – the grinding contest against the Big Three automobile makers" also meant annual styling changes requiring large expenditures.

[43] Investors received a message of the changing fortune of the automaker when the company's 1966 annual financial report was delivered in a plain brown wrapper, instead of the previous year's glossy cover.

American Motors did not have their own electric car program as did the Big Three, and after some negotiation, a contract was drawn in 1967 with Gulton Industries to develop a new battery based on lithium and a speed controller designed by Victor Wouk.

American Motors supplied Mark VII Limited owner Jack Webb with two Matadors, a sedan and a wagon, for use in his popular television series Adam-12, increasing the cars' public profile.

It was a sporty appearance package on the Hornet hatchback featuring upgrades, as well as the 258 cu in (4.2 L) inline six as standard with a choice of three-speed automatic or four-speed manual transmissions.

American Motors targeted it at the emerging "premium compact" market segment, paying particular attention to ride and handling, standard equipment, trim, and interior luxury.

[68] In May 1978, the U.S. Environmental Protection Agency ordered the recall of all American Motors's 1976 cars (except those conforming to California emissions regulations) – some 270,000 vehicles— plus 40,000 1975 and 1976 Jeeps and mini trucks, for correction of a fault in the pollution control system.

New ownership and management heralded a new product venture for American Motors: a line of modern front-wheel drive cars, designed by Renault, to be produced at Kenosha.

The extra protection also included aluminized trim screws, plastic inner fender liners, and galvanized steel in every exterior body panel, along with the unibody getting a deep-dip (up to the window line) bath in epoxy-based primer.

Labor was taking revenge, and reports circulated about the sabotage of vehicles on the assembly lines because of the failure to receive promised wage increases[citation needed].

Jose J. Dedeurwaerder, president since 1982 and chief executive officer since September 1984, announced at the Paris Auto Show in October 1985, that AMC would begin imports of the innovative seven-seat, front-wheel-drive Espace minivan in the spring of 1986.

The new management responded with tactical moves by selling the lawn care Wheel Horse Products Division and signing an agreement to build Jeeps in the People's Republic of China.

[2] [113][114] The sale came at a time when the automotive press was enthusiastic about the proposed 1988 lineup of Renault, Eagle, and Jeep vehicles and reported that the small automaker's financial outlook was improving.

Among them was the world-class, brand-new manufacturing plant in Bramalea, Ontario, which offered Iacocca an unprecedented opportunity to increase his company's production capacity at a fire-sale price.

Following Mason's sudden death on October 8, 1954, Romney took over, reorganizing the company and focusing American Motors' future on a new small car line.

[126] Meyers abandoned AMC's policy of head-on competition and instead focused on revamping its four-wheel drive vehicles, a market segment left untended by the large automakers, and by acquiring advanced technology.

[127] Meyer's began talks with Renault in 1979 and from 1980, American Motors partnered with the French automaker to help finance their manufacturing operations, obtain much-needed capital, and source subcompact vehicles.

[151] The company inherited foreign manufacturing and sales partnerships from Nash and continued developing business relations, decades before most of the international consolidations among automobile makers took place.

American Motors' four-wheel-drive vehicles established the foundation for the modern SUV market segments, and "classic" Jeep models remain the benchmark in this field.

[156] At that time, Chrysler's management was attempting to find a model to improve structure and operations, "something that would help get our minds unstuck and thinking beyond the old paradigms that we were so familiar with".

[157] In this transformation, "Chrysler's acquisition of AMC was one of the all-time great moments in corporate serendipity" according to Lutz " that most definitely played a key role in demonstrating how to accomplish change".

He describes the "troops" at American Motors as more like the Wake Island Marines in battle, "with almost no resources, and fighting a vastly superior enemy, they were able to roll out an impressive succession of new products".

Chapin successfully established or re-established vehicle assembly operations in Argentina, Australia, Belgium (via Renault of France), Chile, Costa Rica, Germany, Iran, Mexico, New Zealand, Peru, Philippines, South Africa, and Venezuela.

[166][167] Argentina Australia Canada Chile Costa Rica Egypt Finland France Germany India Iran Japan Mexico New Zealand Norway People's Republic of China Peru Philippines Switzerland South Africa South Korea Spain Venezuela United Kingdom During its history, American Motors bought or created, then later sold and divested itself of several specialized divisions, some of which continue to exist today: Kelvinator, the subdivision of Nash-Kelvinator, was sold by American Motors in 1968 to White Consolidated Industries and subsequently became part of Electrolux.