It went on sale on 1 March 1987 as a 1988 model and filled the market segment gap for AMC/Renault dealers following the slow-selling Renault 18i/Sportwagon and the venerable AMC Concord.

[12] As part of the buyout, Chrysler would continue AMC's program for U.S. distribution of the new Renault Medallion for five years, but not to sell the originally contracted number of the French imports.

Renault did this for two reasons: 1) The larger, more powerful engines required stronger gearboxes that could not be made to fit into the transaxle assembly typical to transverse powertrains, and 2) The longitudinal engine/transmission layout allowed Renault to use equal-length half-shafts from a centrally-mounted gearbox, which reduced torque steering that would have otherwise been brought on by the increased power generated by the larger engines.

The engine was rated at 103 hp (77 kW; 104 PS) at 5000 rpm and 124 pound force-feet (168 N⋅m) at 2500 rpm, achieving United States Environmental Protection Agency (EPA) fuel economy ratings of: The Medallion featured four-wheel independent suspension with MacPherson struts in the front with negative offset for stability and inclined lower wishbones for anti-dive effect, while the rear suspension is controlled by a V-section cross-member with four transverse torsion bars and inclined shock absorbers.

[18] This put the Medallion in the mid-size car class according to EPA market segments (those between 110 and 120 cu ft (3,115 and 3,398 L) of passenger and luggage space).

At the front, the Medallion featured flush-mounted composite headlamps - a first for an AMC vehicle - mounted on either side of a flush grille with 3 horizontal black bars and a prominent Renault diamond logo.

The new Renault Medallion station wagon was reviewed by Kiplinger's Personal Finance magazine as "surprisingly comfortable, with a load of standard features for its relatively modest $10,693 base price.

A week-long review of an automatic transmission equipped 1988 Medallion by The Milwaukee Sentinel described it as an "eye-appealing alternative for those shopping for a compact four-door sedan" offering "peppy" performance with an engine that "purred contently at highway speeds" while offering a smooth ride in both the city and on the highway returning an actual combined 23 mpg‑US (10 L/100 km; 28 mpg‑imp) fuel economy, but the sedan's low weight at 2,420 lb (1,098 kg), was criticized as too light on open roads in the wind and the insulation to reduce road noise seemed inadequate.

[25] A long-term test by Popular Mechanics found the Medallion "low on flash, high on comfort" especially on long-distance journeys and along the roughest roads in New York City, and the editors came to regard it as a "pretty nice car.

"[26] Other automotive guides recommended the Medallion for its comfortable ride and interior roominess, as well as summarizing that Chrysler does not "have a domestic model in this category that's quite as nice.

"[7] American Motors offered a special optional warranty program exclusively on the Medallion for the 1988 model year called Ultra Plan, which included scheduled maintenance services.

[27] The 1989 Medallions were also covered by Chrysler's new "7/70 Protection Plan" that was a comprehensive warranty on the entire vehicle for seven years or 70,000 miles (110,000 km).

[15] The newly reconfigured Chrysler-Jeep-Eagle dealers also had to deal with the sudden departure of Renault from the market along with a transition to the Chrysler corporate system.

[32] The Medallion was also overshadowed by numerous domestic and imported competitors "that were far easier to sell customers into if they were in the market for a sedan or station wagon of this size.

[33] This reflects the struggles with the Medallion line launched just before Renault exited from U.S. market and that Chrysler only wanted to continue sales of highly profitable Jeep models.

[34] The Medallion was ranked as "a damn good car — winning numerous accolades and enjoying a 9-year model run outside the States.

[35] Robert Lutz, the head of the Chrysler Corporation at the time, said in his 2003 book Guts that the Medallion, and its larger linemate, the Premier were "sales proof" in that no matter how attractive and competitive the cars were, customers in large enough number to ensure success would not take notice.

[11] At the time, Chrysler was investing in the Diamond-Star Motors manufacturing joint venture and building a new plant in Normal, Illinois, with an annual capacity of almost a quarter-million vehicles.

The smaller Eagle Summit made by Mitsubishi was also marketed by Jeep-Eagle dealers, primarily for Alliance and Encore owners to trade into.