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The American Motors Corporation (AMC) was absorbed by the Chrysler Corporation in 1987. Chrysler bought the company primarily to acquire the highly profitable Jeep brand and phased out the AMC passenger car nameplate.
Why Did AMC Fail?
- Lack of Scale: As the smallest of the American automakers, AMC struggled to compete with the massive R&D and marketing budgets of the "Big Three" (General Motors, Ford, and Chrysler).
- Financial Strain: In the 1980s, the company partnered with the French automaker Renault. However, poor sales of Renault-designed cars in the US and the assassination of Renault's president led the French company to sell its shares.
- The Irony of Jeep: AMC executives actually sold the company just as preliminary data revealed the new Jeep Cherokee (XJ) was a massive hit. Had they waited, the sudden cash influx might have kept them independent.
The Lasting Legacy
For a deeper look into the history, struggles, and innovations that defined American Motors:
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