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AMC

AMC: American Motors, the Underdog That Bought Jeep

Classic

American Motors Corporation, or AMC, was formed when Nash-Kelvinator merged with the Hudson Motor Car Company on May 1, 1954, at the time the largest corporate merger in U.S. history. It built everything from the Rambler to the Javelin and AMX until Chrysler bought it in 1987.

AMC models we cover

Nash's George W. Mason engineered the merger. He believed America's remaining independent automakers had to join forces to take on the Big Three of Ford, General Motors, and Chrysler. AMC's lineup ran from small cars like the Rambler American, Hornet, Gremlin, and Pacer to the larger Ambassador and Matador, and chief stylist Dick Teague was known for making a lot out of a much tighter budget than Detroit's big studios had.

In the 1960s AMC answered the muscle car boom with the AMX, and the Javelin was its entry in the pony car market started by the Plymouth Barracuda and Ford Mustang. The Gremlin, the first North American-built subcompact, sold more than 670,000 from 1970 through 1978, and for a time the Hornet and Gremlin could be ordered with Levi's denim interiors. The Pacer arrived in March 1975, marketed as "the first wide small car." It had been designed around a General Motors Wankel rotary engine that GM dropped after the 1973 oil embargo, so AMC fitted its own straight-six engines instead.

In February 1970 AMC bought Kaiser Jeep for $70 million and gained the Jeep brand. For 1980 it added four-wheel drive to the Spirit and Concord to create the AMC Eagle, an early crossover. Renault took a significant stake in 1979, and on March 9, 1987, Chrysler agreed to buy Renault's share and all remaining shares for about $1.5 billion. Chrysler CEO Lee Iacocca mainly wanted Jeep. The last AMC Eagle was built on December 14, 1987.

Frequently asked questions about AMC

What does AMC stand for in cars?
American Motors Corporation, the automaker formed in 1954 by the merger of Nash-Kelvinator and Hudson. It built the Rambler, Javelin, AMX, Gremlin, Pacer, and Eagle, and it owned Jeep from 1970 until Chrysler bought the company in 1987.
Who bought AMC?
Chrysler. Renault had acquired a significant stake in 1979, and on March 9, 1987, Chrysler agreed to buy Renault's share plus all remaining shares for about $1.5 billion. The Jeep brand was the main attraction for Chrysler CEO Lee Iacocca.
What was the AMC Gremlin?
The first North American-built subcompact car. AMC sold more than 670,000 Gremlins from 1970 through 1978. It shared a platform with the Hornet, and for a time both could be ordered with Levi's denim interiors.

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