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===1980s=== A drop in Jeep sales caused by the declining economy and soaring energy prices began to constrict American Motors' cash flow. At the same time, pressure increased on the company's non-Jeep product lines. The face-lifts and rebranding of American Motors' once-innovative and successful cars were not enough in a competitive landscape that had changed dramatically. No longer was the threat limited to the [[Big Three (automobile manufacturers)|Big Three]] automakers ([[General Motors]], [[Ford Motor Company|Ford]], and [[Chrysler]]). In response to the [[1979 oil crisis]], the Big Three had resorted to importing foreign motor vehicles, mainly Japanese models. Japanese models were mass-marketed and had lower manufacturing costs.<ref name="University of Michigan Press">{{Cite book |url=https://www.jstor.org/stable/10.3998/mpub.18647 |title=The Japanese Automotive Industry: Model and Challenge for the Future? |date=1981 |publisher=University of Michigan Press |isbn=978-0-939512-08-9 |doi=10.3998/mpub.18647|jstor=10.3998/mpub.18647 |editor-last1=Cole |editor-first1=Robert }}</ref> By the end of 1980 Japanese manufacturers surpassed Detroit's production totals, becoming first in the world. Indeed, the share of Japanese cars in U.S. auto purchases rose from 9 percent in 1976 to 21 percent in 1980.<ref name="University of Michigan Press"/> The Japanese manufacturers ([[Honda]], [[Toyota]], and [[Nissan]]) used streamlined production methods such as outsourcing and [[Just In Time (business)|Just In Time]] (JIT) supply-chain management. They had new, highly efficient assembly plants in the United States. And now they targeted the heart of American Motors' passenger product line: small cars. While Americans turned to the new imports in increasing numbers, American Motors continued its struggle at the inefficient and aging downtown [[Kenosha, Wisconsin]], facilities—the oldest continuously operating automobile plant in the world, where components and unfinished bodies still had to be transported across the city. In early 1980, the banks refused American Motors further credit. Lacking both capital and resources for the new, truly modern products it needed to offer, the company turned to Renault for a $90 million loan (US${{formatnum:{{Inflation|US|90000000|1980}}}} in {{Inflation-year|US}} dollars{{inflation-fn|US}}).<ref>{{cite magazine |url= http://www.time.com/time/magazine/article/0,9171,924408-8,00.html|archive-url= https://web.archive.org/web/20071130033908/http://www.time.com/time/magazine/article/0,9171,924408-8,00.html|archive-date= November 30, 2007|url-access=subscription|title=Detroit's Uphill Battle |magazine=Time|date=September 8, 1980|access-date=July 29, 2010|first1=Alexander |last1=Taylor III |first2=Christopher |last2=Redman |first3=Barrett |last3=Seaman}}</ref> By September that year, American Motors's U.S. market share had fallen to 1.7%, and in November sales dropped 19.1%. American Motors warned stockholders that the company could be bankrupted if they did not approve a plan for Renault to acquire as much as 59% of the company.<ref>{{cite magazine |first1=Alexander |last1=Taylor |first2=Christopher |last2=Redman |url= http://www.time.com/time/magazine/article/0,9171,922223-2,00.html |archive-url= https://web.archive.org/web/20121105153045/http://www.time.com/time/magazine/article/0,9171,922223-2,00.html |archive-date=November 5, 2012 |url-access=subscription |title=Detroit's Road Is Still Rocky |magazine=Time|date=December 15, 1980 |access-date=July 29, 2010}}</ref> On December 16, 1980, American Motors shareholders "overwhelmingly approved making the French Government-owned Renault" their company's principal owner.<ref name="Peterson D1">{{cite news |first=Iver |last=Peterson |title=A.M.C. Raises Renault's Stake; A.M.C.-Renault Plan Set |url= https://www.nytimes.com/1980/12/17/archives/amc-raises-renaults-stake-amcrenault-plan-set.html |url-access=subscription |access-date=August 9, 2010 |newspaper=The New York Times |date=December 17, 1980 |page=D1 |archive-date=August 11, 2020 |archive-url= https://web.archive.org/web/20200811021323/https://www.nytimes.com/1980/12/17/archives/amc-raises-renaults-stake-amcrenault-plan-set.html |url-status=live }}</ref> Jean-Marc Lepeu, former corporate treasurer at Renault, became vice president for finance at American Motors. In September 1981, [[Jose Dedeurwaerder]], a Renault veteran of 23 years, mainly in manufacturing, became American Motors' executive vice president for manufacturing.<ref>{{cite news |title=AT (Franco-)American Motors, Paris Takes the Wheel |first=James |last=Risen |date=February 7, 1982 |newspaper=The New York Times |url= https://www.nytimes.com/1982/02/07/business/at-franco-american-motors-paris-takes-the-wheel.html |access-date=November 4, 2019 |archive-date=February 15, 2022 |archive-url= https://web.archive.org/web/20220215001659/https://www.nytimes.com/1982/02/07/business/at-franco-american-motors-paris-takes-the-wheel.html?searchResultPosition=68 |url-status=live }}</ref> In January 1982, the company's president [[W. Paul Tippett Jr.]] replaced Gerald C. Meyers as chairman and CEO, and Dedeurwaerder moved up to be president.<ref>{{cite magazine |url= http://content.time.com/time/magazine/article/0,9171,921599,00.html|url-access=subscription|first=John S. |last=Demott |title=On the Comeback Trail |magazine=Time |date=March 12, 1984 |access-date=August 20, 2019}}</ref> By this time Renault owned 46% of American Motors. Dedeurwaerder brought a broad perspective at this critical time: he is credited with streamlining many of American Motors' arcane management techniques. He also instituted important improvements in plant layouts, as well as in cost and quality control.<ref>{{cite book|editor-last=Derdak |editor-first=Thomas |title=International Directory of Company History, Volume 1 |publisher=St. James Press |year=1988 |page=[https://archive.org/details/internationaldir0001unse/page/136 136] |isbn=978-0-912289-10-6 |url= https://archive.org/details/internationaldir0001unse/page/136}}</ref> Having increased its stake in the company several times to keep it solvent, Renault eventually owned 49% in 1983. Some view this development as ending American Motors' run as a truly American car company. New ownership and management heralded a new product venture for American Motors: a line of modern [[front-wheel drive]] cars, designed by Renault, to be produced at Kenosha.
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