Editing American Motors Corporation (section)

== Product development in the 1950s ==

=== Product consolidation ===
[[File:'57 Nash Metropolitan Coupe (Auto classique St. Lazare '10).jpg|thumb|1957 [[Nash Metropolitan]]]]
American Motors combined the Nash and Hudson product lines under a common manufacturing strategy in 1955, with the production of Nashes and Hudsons consolidated at the Nash plant in Kenosha.<ref name=newentry/> The Detroit Hudson plant was converted to military contract production and eventually sold. The separate Nash and Hudson dealer networks were retained. The Hudsons were redesigned to harmonize with Nash's body styles.

The fast-selling [[Nash Rambler]] model was sold as a Nash and a Hudson in 1955 and 1956. These [[Badge engineering|badge-engineered]] Ramblers, and similarly the small Metropolitans, were identical except for the hubcaps, nameplates, and other minor trim.

The pre-existing full-size Nash product line was continued with the [[Nash Statesman]] restyled as the "new" [[Hudson Wasp]] and the [[Nash Ambassador]] restyled as the [[Hudson Hornet]]. Although the cars shared the same body shell, they were at least as different from one another as Chevrolet and Pontiac. Hudsons and Nashes each used their engines as they had previously: the Hudson Hornet continued to offer the {{convert|308|CID|L|1|abbr=on}} I6 that had powered the ([[NASCAR]]) champion during the early 1950s; the Wasp now used the former engine of the Hudson Jet.

The Nash Ambassador and Statesman continued with overhead- valve and L-head sixes, respectively. Hudson and Nash cars had different front suspensions. Trunk lids were interchangeable, but other body panels, rear window glass, dash panels, and braking systems differed. The Hudson Hornet, Wasp, and their Nash counterparts had improved ride, visibility, and fuel economy because of their lighter unitized Nash body.

[[File:Rambler American 1st-generation black sedan.jpg|thumb|1959 Rambler American Club Sedan]]

The larger Nash and Hudson range did not sell well, and AMC lost money each year. Dismayed with the results, Romney decided in 1956 that the company's future lay with the compact Rambler line. Romney halted production on the new large cars and focused entirely on the new [[Rambler Six and V8]] introducing them in 1956, despite being scheduled for a 1957 release. Sales of the new Ramblers were poor, and sales of the Hudson and Nash models were almost non-existent, resulting in a $31.7 million operating loss for 1956. Sales improved in 1957, but the company saw a $11.8 million loss. In response, Romney launched a massive public relations campaign, traveling {{convert|70,000|mi|km|0|abbr=off}} nationwide in 12 months. Romney spoke at union halls, dinners, churches, fairgrounds, and radio and TV stations. He was anywhere where he could get the word out about Rambler. Rambler sales took off in 1958, up 58.7%, and 425 new dealers were signed up. As a result, 1958 became AMC's first year of profitability since its formation, with $28 million in earnings. The Nash and Hudson brands were dropped, and [[Rambler (car)|Rambler]] became a marque in its own right and the mainstay of the company.<ref>{{cite web |url= https://www.curbsideclassic.com/automotive-histories/automotive-history-nash-rambler-amc-during-the-romney-years-1947-1962-filling-in-a-lot-of-blanks-and-correcting-a-lot-of-assumptions/2/ |title= Automotive History: George Romney at Nash/Rambler/AMC (1947-1962) – Unflinching Vision and Determination to Take on the Big Three Dinosaurs with Compacts |date=February 5, 2021 |access-date=July 2, 2021 |archive-date=July 9, 2021 |archive-url= https://web.archive.org/web/20210709182246/https://www.curbsideclassic.com/automotive-histories/automotive-history-nash-rambler-amc-during-the-romney-years-1947-1962-filling-in-a-lot-of-blanks-and-correcting-a-lot-of-assumptions/2/ |url-status= live }}</ref> The popular British-built Metropolitan subcompact continued as a standalone brand until it was discontinued in 1961. The prototype 1958 [[Nash Ambassador]]/[[Hudson Hornet]], built on a stretched Rambler platform, was renamed at the last minute as "Ambassador by Rambler". To round out the model line, American Motors reintroduced the previous 1955, {{convert|100|in|mm|0|abbr=on}} wheelbase [[Nash Rambler]] as the new [[Rambler American]] with only a few modifications. This gave Rambler a compact lineup that included the reintroduced American, the {{convert|108|in|mm|0|abbr=on}} wheelbase [[Rambler Six]] and [[Rambler Rebel|Rebel V8]], as well as the {{convert|117|in|mm|0|abbr=on}} wheelbase Ambassador.

=== The "dinosaur-fighter" ===
[[File:1958 Rambler sedan pink and white NJ.jpg|thumb|1958 Rambler Custom 4-Door Sedan]]

Sales of Ramblers soared in the late 1950s partly because of American Motors' focus on the compact car and its marketing efforts. These included sponsoring the hugely popular [[Walt Disney anthology television series]] and as an exhibitor at the Disneyland theme park in Anaheim, California. George Romney himself pitched the Rambler product in television commercials.

While the "Big Three" introduced ever-larger cars, American Motors followed a "dinosaur-fighter" strategy. [[George W. Romney]]'s leadership focused the company on the compact car, a fuel-efficient vehicle 20 years before there was a real need for them.<ref>{{cite book|first1=Gerald C. |last1=Meyers |first2=John |last2=Holusha |year=1986 |title=When it hits the fan: Managing the nine crises of business |publisher=Houghton Mifflin |isbn=978-0-395-41171-1 |url-access=registration |url= https://archive.org/details/whenithitsfanman0000meye}}</ref> This gave Romney a high profile in the media. Two core [[Critical success factor|strategic factors]] came into play: (1) the use of shared components in American Motors products and (2) a refusal to participate in the Big Three's restyling race. This cost-control policy helped Rambler develop a reputation for building solid economy cars. Company officials were confident in the changing market and in 1959 announced a $10&nbsp;million (US${{formatnum:{{Inflation|US|10000000|1959}}}} in 2016 dollars{{inflation-fn|US}}) expansion of its Kenosha complex (to increase annual straight-time capacity from 300,000 to 440,000 cars).<ref name=rvm15>{{cite magazine |url= http://wardsautoworld.com/ar/auto_rearview_mirror_15/index.html |title=Rearview mirror|magazine=Ward's AutoWorld |date=February 1, 2000 |access-date=August 31, 2012|archive-url= https://web.archive.org/web/20110728081550/http://wardsautoworld.com/ar/auto_rearview_mirror_15/index.html |archive-date=July 28, 2011}}</ref> A letter to shareholders in 1959 claimed that the introduction of new compact cars by American Motors' large domestic competitors (for the 1960 model year) "signals the end of big-car domination in the U.S." and that American Motors predicts small-car sales in the U.S. may reach three million units by 1963.<ref name=rvm15/>

American Motors was also beginning to experiment with non-gasoline-powered automobiles. On April 1, 1959, American Motors and Sonotone Corporation announced a joint research effort to consider producing an [[electric car]] that was to be powered by a "self-charging" battery.<ref>{{cite magazine |url= http://wardsautoworld.com/ar/auto_rearview_mirror_13/index.html|title=Rearview Mirror|magazine=Ward's AutoWorld |date=April 1, 2000 |access-date=August 31, 2012 |archive-url= https://web.archive.org/web/20110728081557/http://wardsautoworld.com/ar/auto_rearview_mirror_13/index.html |archive-date=July 28, 2011}}</ref> Sonotone had the technology for making sintered plate [[nickel–cadmium batteries]] that can be recharged very rapidly and are lighter than a typical automobile [[lead–acid battery]].<ref>{{cite web |url= http://www.roger-russell.com/sonopg/sononst.htm |first=Roger |last=Russell |title=Sonotone History: Tubes, Hi-Fi Electronics, Tape heads and Nicad Batteries |publisher=Sonotone Corporation History |access-date=July 12, 2010 |archive-date=July 12, 2012 |archive-url= https://web.archive.org/web/20120712044321/http://www.roger-russell.com/sonopg/sononst.htm |url-status=live }}</ref>

In 1959, American Motors hired designer Dick Teague, who had previously worked for [[General Motors]], [[Packard]], and [[Chrysler]]; after [[Edmund E. Anderson]] left the company in 1961, Teague was named principal designer and in 1964, vice president.

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