The costs of developing and marketing the Jet, along with the fierce competition from the domestic "Big Three" automakers, ultimately led to Hudson's merger with Nash to establish the American Motors Corporation in 1954.

[3] The U.S. automakers were unsure about the post-World War II economy, and even Chevrolet and Ford made plans to develop economical, small-sized models.

[4] Offering consumers lower prices and economy, Nash launched the compact Rambler in April 1950, and Kaiser rolled out the small Henry J in September 1950.

[4] Hudson had limited financial resources, and the relative successes of the Rambler and Henry J compact cars signaled a market segment having an opportunity.

[6] Consequently, the company was forced to merge with Nash-Kelvinator, forming American Motors Corporation (AMC), because of the losses resulting from the Jet project along with the falling sales of Hudson's senior line.

The new I6 engine featured a forged steel crankshaft and shared with the I8 cast aluminum pistons with iron rings as well as floating connecting rods and solid lifters.

[9] A "Twin-H power" version with two 1-bbl downdraft carburetors, aluminum cylinder head, and 8.0:1 compression ratio producing 114 hp (85 kW; 116 PS) was optional.

Pulling the control knob locked out the overdrive and free-wheeling, which was necessary when on steep grades, in heavy traffic, or encountering slippery road conditions.

[17] Kiplinger's Personal Finance magazine noted that the Jet has "much to recommend it" including "riding qualities [which] match more expensive models", good visibility, quiet operation, and more power than its competition for "excellent pickup and a high top speed".

[17] While the 1953 senior Hudsons continued to be based upon the 1948 step-down design, these cars looked sleeker than the smaller, slab-sided Jet models.

Unlike the Nash Rambler, which offered premium body styles such as a station wagon, hardtop, and convertible, the Jet was available only in sedan form.

Features included a heater, theft-proof locks, rotary door latches, defroster vents, dual horns, full-wheel covers, an ashtray, and a lighted ignition switch, equipment that was typically extra cost on the competing makes.

The Jet-Liner came with chrome trim around the windows and body side, gravel shields, and upgraded color-keyed vinyl interiors featuring foam rubber seat cushions.

Barit hoped that the Jet would survive the merger as the resulting new American Motors Corporation focused on the niche market of selling smaller cars.

[26] In drag racing, an Ike Smith–prepared Hudson Jet with a 170 hp (127 kW; 172 PS) "Twin H" 308 cu in (5.0 L) I6 Hornet engine ran consistently low-14-second times.

[27] The firewall required modification as the larger engine was not available from the factory, but the National Hot Rod Association (NHRA) made an exception to its rules for this car.

[27] Hudson "gambled" to introduce a new compact car, yet its styling was described as "bland, its engineering was nothing if not conventional, and it was priced higher than a full-sized Chevy, Ford, or Plymouth.

[12] While there was a negative effect of the Jet on the company's financial condition, it was also a time when market forces, including steel prices and labor costs, as well as the sales war between Ford and Chevrolet, contributed to the demise of the smaller "independent" automakers such as Packard, Studebaker, and Willys.

The limited production Italia featured a body built by Carrozzeria Touring of Milano, with the Jet's standard drivetrain including the I6 engine producing 104 hp (78 kW; 105 PS).