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=== Late 1970s === [[File:1978 AMC Concord DL 4-door sedan beige.jpg|thumb|right|1978 AMC Concord]] [[File:1979 AMC Spirit liftback light blue NC-r.jpg|thumb|right|AMC Spirit liftback]] [[File:Jeep Grand Wagoneer white NC f.jpg|thumb|right|Jeep Grand Wagoneer]] In February 1977, ''Time'' magazine reported that although American Motors had lost $73.8 million in the previous two fiscal years, U.S. banks had agreed to a year's extension for a $72.5 million credit that had expired in January, that stockholders had received no dividends since 1974, and that Pacer sales did not match expectations. However, Time noted record Jeep sales and a backlog of orders for AM General's buses.<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,914814-2,00.html |archive-url= https://web.archive.org/web/20100828111708/http://www.time.com/time/magazine/article/0,9171,914814-2,00.html |archive-date= August 28, 2010 |url-access=subscription |title=American Motors Hangs In There|magazine=Time|date=February 14, 1977|access-date=August 31, 2012}}</ref> In July 1977, it was announced that the [[General Services Administration]] of the Federal U.S. government had awarded AMC a three-year contract worth $15 million to lease 5,838 cars. Since the beginning of the fiscal year on October 1, 1976, the GSA had purchased 8,700 cars from AMC for $30 million.<ref>{{cite web|title=Hotline News: Top News in Fleet and Leasing Large Lease Contract Goes to AMC |date=July 1, 1977 |url= https://www.automotive-fleet.com/147091/hotline-news-top-news-in-fleet-and-leasing-2 |work=Automotive Fleet |access-date=November 15, 2023}}</ref> On October 21, 1977, Roy Chapin Jr. retired, and Gerald C. Meyers became chairman and CEO.<ref name=ward/> On March 31, 1978, American Motors and Renault announced a sweeping agreement for jointly manufacturing and distributing cars and trucks that would benefit both.<ref>{{cite news|first=Reginald|last=Stuart|title=Joint Manufacture Planned In Accord By A.M.C., Renault; Distribution Also Covered |url= https://www.nytimes.com/1978/04/01/archives/joint-manufacture-planned-in-accord-by-amc-renault-distribution.html |url-access=subscription |access-date=August 9, 2010 |newspaper=The New York Times |date=April 1, 1978 |page=27 |archive-date=June 11, 2019 |archive-url= https://web.archive.org/web/20190611045005/https://www.nytimes.com/1978/04/01/archives/joint-manufacture-planned-in-accord-by-amc-renault-distribution.html |url-status=live}}</ref> A month later, American Motors announced that it would halt the production of standard urban [[transit bus]]es after about 4,300 were sold by its AM General subsidiary over a period of three years.<ref>{{cite news|title=A.M.C. to Halt Building Standard Transit Buses |url= https://www.nytimes.com/1978/06/01/archives/amc-to-halt-building-standard-transit-buses-4300-vehicles-sold-over.html |url-access=subscription |access-date=August 9, 2010 |newspaper=The New York Times |date=June 1, 1978 |page=D4 |archive-date=February 15, 2022 |archive-url= https://web.archive.org/web/20220215053425/https://www.nytimes.com/1978/06/01/archives/amc-to-halt-building-standard-transit-buses-4300-vehicles-sold-over.html |url-status=live}}</ref> In May 1978, the U.S. Environmental Protection Agency ordered the recall of all American Motors's 1976 cars (except those conforming to California emissions regulations) – some 270,000 vehicles— plus 40,000 1975 and 1976 Jeeps and mini trucks, for correction of a fault in the pollution control system. Total cost was estimated at up to $3 million, or more than AMC had earned the previous quarter.<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,919677,00.html |archive-url= https://web.archive.org/web/20080307194638/http://www.time.com/time/magazine/article/0,9171,919677,00.html |archive-date=March 7, 2008 |url-access=subscription |title=AMC's Almost Total Recall |magazine=Time |date=May 22, 1978|access-date=July 29, 2010}}</ref> American Motors lost an estimated $65 million on its conventional (non-Jeep) cars for the fiscal year that ended September 30, 1978, but strong Jeep sales helped the company to an overall $36.7 million profit on sales of $2.6 billion. However, American Motors faced costly engineering work to bring their Jeeps into compliance with a federal directive for all 4-wheel-drive vehicles to average {{convert|15|mpgus|L/100 km mpgimp|abbr=on}} by 1981.<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,916539,00.html|archive-url= https://web.archive.org/web/20101014110944/http://www.time.com/time/magazine/article/0,9171,916539,00.html|archive-date= October 14, 2010|url-access=subscription|title=Money Machine|magazine=Time|date=December 18, 1978|access-date=July 29, 2010}}</ref> In December 1978 the government of [[Iran]], embroiled in the [[Iranian revolution]], cut off oil exports to the world. This caused a devastating effect on all American automobile makers and American consumers. Gasoline prices jumped 52 percent between September and December 1979. Each of the [[Big Three (automobile manufacturers)|Big Three]] (Ford, General Motors, Chrysler) lost money throughout 1979 leading to Chrysler becoming insolvent and considering bankruptcy by September. Ford survived only because of its European operations, eventually losing $7 billion in domestic sales from 1979 to 1982. [[1979 oil crisis|During the crisis]], and with its domestic market share at 1.83%, American Motors struck a deal with Renault, the nationally owned French automaker in October 1979. AMC would receive a $150 million cash injection, $50 million in credits, and also the rights to start building the [[Renault 5]] in 1982<ref name=accent>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,947525,00.html|archive-url= https://web.archive.org/web/20091026235427/http://www.time.com/time/magazine/article/0,9171,947525,00.html |archive-date= October 26, 2009 |url-access=subscription |title=French Accent |magazine=Time |date=October 22, 1979 |access-date=July 29, 2010}}</ref> (a deal for Renault products to be sold through the American Motors-Jeep dealer network had already been made in 1979).<ref>{{cite web |url= http://www.amxfiles.com/amc/part5.html|title=Endgame: Renault and Jeep |publisher=AMX-files |access-date=August 31, 2012 |archive-url= https://web.archive.org/web/20090525103845/http://www.amxfiles.com/amc/part5.html |archive-date=May 25, 2009}}</ref> In return, Renault acquired a 22.5% interest in American Motors.<ref name=accent/> This was not the first time the two companies had worked together. Lacking a prestige model line in the early 1960s, Renault assembled [[Complete knock down|CKD]] kits and marketed Rambler cars in France.<ref>{{cite web |url= http://blog.doctissimo.fr/phedor/cimetiere-oubliees-rambler-2264660.html |title=Le Cimetiere Des Autos Oubloees: Renault Rambler (1962–67) |publisher=The graveyard of forgotten cars |language=fr |date=April 4, 2007 |access-date=August 31, 2012 |archive-url= https://web.archive.org/web/20150222211612/http://blog.doctissimo.fr/phedor/cimetiere-oubliees-rambler-2264660.html |archive-date=February 22, 2015}}</ref> In 1979, American Motors announced a record $83.9 million profit on sales of $3.1 billion (US${{formatnum:{{Inflation|US|3100000000|1979}}}} in {{Inflation-year|US}} dollars{{inflation-fn|US}}) for the fiscal year ending in September—this despite an economic downturn, soaring energy prices, rising American unemployment, automobile plants shutting down, and an American market trend towards imported cars.<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,948805,00.html|archive-url= https://web.archive.org/web/20101015203415/http://www.time.com/time/magazine/article/0,9171,948805,00.html |archive-date= October 15, 2010 |url-access=subscription |title=AMC's Charge |magazine=Time |date=November 19, 1979 |access-date=July 29, 2010}}</ref>
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