Editing American Motors Corporation (section)

== 1954 formation ==
[[File:American Motors-1954.svg|left|thumb|150px|American Motors logo used from 1954 until 1967]]
In January 1954, Nash-Kelvinator Corporation began the acquisition of the Hudson Motor Car Company (in what was called a [[Mergers and acquisitions|merger]]). The new corporation would be called the American Motors Corporation. An earlier corporation with the same name, co-founded by [[Louis Chevrolet]], had existed in Plainfield, New Jersey, from 1916 through 1922 before merging into the Bessemer–American Motors Corporation.

The Nash-Kelvinator/Hudson deal was a straight [[stock transfer agent|stock transfer]] (three shares of Hudson listed at {{frac|11|1|8}}, for two shares of American Motors and one share of Nash-Kelvinator listed at {{frac|17|3|8}}, for one share of American Motors) and finalized in the spring of 1954, forming the fourth-biggest auto company in the U.S. with [[asset]]s of US$355&nbsp;million and more than $100&nbsp;million in [[working capital]].<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,823270,00.html|archive-url= https://web.archive.org/web/20101116180818/http://www.time.com/time/magazine/article/0,9171,823270,00.html|archive-date= November 16, 2010|url-access=subscription|title=Answer from the Hustlers |magazine=Time|date=January 25, 1954|access-date=July 12, 2010}}</ref> The new company retained Hudson CEO [[A.E. Barit]] as a consultant and he took a seat on the [[board of directors]]. Nash's [[George W. Mason]] became president and CEO.

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. The "frantic 1953–54 Ford/GM price war" devastated the remaining "independent" automakers.<ref>{{cite book|first=James M.|last=Flammang |title=Chronicle of the American automobile: over 100 years of auto history |year=1994 |publisher=Publications International |isbn=978-0-7853-0778-5 |url= https://books.google.com/books?id=9Z5TAAAAMAAJ&q=frantic+1953-54+Ford/GM+price+war |page=278 |access-date=July 29, 2010 |archive-date=May 14, 2016 |archive-url= https://web.archive.org/web/20160514100309/https://books.google.com/books?id=9Z5TAAAAMAAJ&q=frantic+1953-54+Ford/GM+price+war |url-status=live}}</ref> 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.<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,860075,00.html |archive-url= https://web.archive.org/web/20081222130620/http://www.time.com/time/magazine/article/0,9171,860075,00.html |archive-date= December 22, 2008 |url-access=subscription|title=Time Clock, Oct. 12, 1953 |magazine=Time |date=October 12, 1953|access-date=July 12, 2010}}</ref>

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.<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,823771,00.html |archive-url= https://web.archive.org/web/20081215071048/http://www.time.com/time/magazine/article/0,9171,823771,00.html |archive-date= December 15, 2008 |url-access=subscription|title=Time Clock, Feb. 7, 1955 |magazine=Time|date=February 7, 1955|access-date=July 12, 2010}}</ref> After the merger, AMC had its first profitable quarter during the second three months of 1955, earning $1,592,307, compared to a loss of $3,848,667 during the same period in the previous year.<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,866588,00.html |archive-url= https://web.archive.org/web/20081215050030/http://www.time.com/time/magazine/article/0,9171,866588,00.html |archive-date= December 15, 2008 |url-access=subscription|title=Second-Best Year |magazine=Time|date=August 1, 1955|access-date=July 12, 2010}}</ref> Mason also entered into informal discussions with [[James J. Nance]] of Packard to outline his [[Strategic planning|strategic vision]]. Interim plans were made for American Motors to buy Packard [[Ultramatic]] automatic transmissions and Packard [[V8 engine]]s for certain American Motors products.

In July 1954, [[Packard]] acquired [[Studebaker]].<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,860916,00.html |archive-url= https://web.archive.org/web/20101116223456/http://www.time.com/time/magazine/article/0,9171,860916,00.html |archive-date= November 16, 2010 |url-access=subscription|title=Autos: Merger No. 3 |magazine=Time |date=June 28, 1954|access-date=July 12, 2010}}</ref> The new [[Studebaker-Packard Corporation]] (S-P) made the new {{convert|320|CID|L|abbr=on}} Packard V8 engine and Packard's Ultramatic automatic transmission available to American Motors for its 1955 [[Nash Ambassador]] and Hudson Hornet models. When Mason died in 1954, [[George W. Romney]] succeeded him. Ironically, Romney had once been offered Nance's job.<ref>{{cite book|first=Thomas E. |last=Bonsall |title=More Than They Promised: The Studebaker Story|publisher=Stanford University Press|year =2000|page=287 |url= https://books.google.com/books?id=w67Uhn6bpnsC&pg=PA287 |isbn=978-0-8047-3586-5|access-date=November 24, 2010}}</ref> In 1948, Romney received offers from Packard for the post of chief operating officer and from Nash for the number two position in the company. Although the Packard offer would have paid more, Romney decided to work under Mason because he thought Nash had a brighter future. Studebaker-Packard president James Nance refused to consider merging with American Motors unless he could take the top position (Mason and Nance were former competitors as heads of the Kelvinator and [[Hotpoint]], respectively), and a week after Mason's death, Romney announced ''"there are no mergers under way either directly or indirectly."''<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,823618,00.html |archive-url= https://web.archive.org/web/20070930213850/http://www.time.com/time/magazine/article/0,9171,823618,00.html |archive-date= September 30, 2007 |url-access=subscription|title=Personnel: Changes of the Week |magazine=Time |date=October 25, 1954|access-date=July 12, 2010}}</ref> Romney agreed with Mason's commitment to buy S-P products. Mason and Nance had agreed that S-P would endeavor to purchase parts from American Motors in return, but S-P did not do so. As the Packard engines and transmissions were comparatively expensive, American Motors began development of its own [[AMC V8 engine|V8]].<ref name=newentry>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,819620,00.html |archive-url= https://web.archive.org/web/20101116224228/http://www.time.com/time/magazine/article/0,9171,819620,00.html |archive-date= November 16, 2010 |url-access=subscription|title=Autos: New Entry |magazine=Time|date=March 22, 1954|access-date=July 12, 2010}}</ref> American Motors also spent US$40 million developing its Double Safe Single Unit [[monocoque]], which debuted in the 1956 model year.<ref>{{cite web |url= http://www.oldcaradvertising.com/AMC%20Ads/1956%20Rambler/1956%20Rambler%20Ad-02.jpg|title=Make the Smart Switch for '56 |website=OldCarAdvertising.com |archive-url= https://web.archive.org/web/20160310133755/http://www.oldcaradvertising.com/AMC%20Ads/1956%20Rambler/1956%20Rambler%20Ad-02.jpg |archive-date=March 10, 2016 |access-date=October 8, 2013}}</ref><ref>{{cite web |url= http://www.oldcaradvertising.com/AMC%20Ads/1956%20Rambler/1956%20Rambler%20Ad-05.jpg|title=A New Era In Motoring Has Begun |website=OldCarAdvertising.com |archive-url= https://web.archive.org/web/20160310133555/http://www.oldcaradvertising.com/AMC%20Ads/1956%20Rambler/1956%20Rambler%20Ad-05.jpg |archive-date=March 10, 2016 |access-date=October 8, 2013}}</ref> In mid-1956, the {{convert|352|CID|L|1|abbr=on}} Packard V8 and [[Ultramatic#1955: Twin-Ultramatic Drive|TwinUltramatic]] transmission were phased out and replaced by American Motors's new V8 and by GM Hydra-Matic and [[BorgWarner|Borg-Warner]] transmissions.