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=== Chrysler purchases American Motors stock === Under pressure from Renault executives following Besse's death, Renault's new president, Raymond Levy, set out to repair employee relations and [[Divestment|divest]] the company of its investment in American Motors. Renault owned 46.1% of American Motors' outstanding shares of stock. In 1986, American Motors posted a $91.3 million loss.<ref name=holusha>{{cite news |first=John |last=Holusha |title=Chrysler is Buying American Motors; Cost is $1.5 billion |url= https://www.nytimes.com/1987/03/10/business/chrysler-is-buying-american-motors-cost-is-1.5-billion.html |url-access=subscription |access-date=August 7, 2010 |newspaper=The New York Times |date=March 10, 1987 |archive-date=August 15, 2018 |archive-url= https://web.archive.org/web/20180815165532/https://www.nytimes.com/1987/03/10/business/chrysler-is-buying-american-motors-cost-is-1.5-billion.html |url-status=live }}</ref> The earlier agreement between Chrysler and American Motors in 1985, under which American Motors would produce [[Chrysler M platform|M-body chassis]] rear-drive large cars for five years from mid-1986 through 1990, fed the rumor that Chrysler was about to buy AMC. According to the head of manufacturing for Chrysler, Stephan Sharf, the existing relationship with AMC producing a car for a competitor facilitated the negotiations.<ref name=sharf/> [[File:1st Jeep Grand Cherokee .jpg|thumb|The [[Jeep Grand Cherokee]] was the driving force behind Chrysler's buyout of American Motors; Lee Iacocca wanted the design. Chrysler completed development and released it to the public in late 1992 and continues to use the nameplate.]] On March 9, 1987, Chrysler agreed to buy Renault's share in American Motors, plus all the remaining shares, for about $1.5 billion (${{formatnum:{{Inflation|US|1500000000|1987}}}} in {{Inflation-year|US}} dollars{{inflation-fn|US}}).<ref name=holusha/><ref name=cannpl>{{cite news |url= https://news.google.com/newspapers?id=A0BPAAAAIBAJ&pg=6239%2C2741774 |work=Toledo Blade |location=(Ohio) |agency=Associated Press |title=Chrysler announces plans to purchase AM as subsidiary |date=March 9, 1987 |page=1 |access-date=September 21, 2020 |archive-date=February 15, 2022 |archive-url= https://web.archive.org/web/20220215100052/https://news.google.com/newspapers?id=A0BPAAAAIBAJ&pg=6239%2C2741774 |url-status=live }}</ref><ref name=bbupdl>{{cite news |url= https://news.google.com/newspapers?id=g05TAAAAIBAJ&pg=4227%2C6179679 |work=The Bulletin |location=Bend, Oregon |agency=UPI |title=Chrysler sets AMC deal |date=March 9, 1987 |page=A1 |access-date=September 21, 2020 |archive-date=October 11, 2021 |archive-url=https://web.archive.org/web/20211011055926/https://news.google.com/newspapers?id=g05TAAAAIBAJ&pg=4227%2C6179679 |url-status=live }}</ref><ref name=rlvbo>{{cite news |url=https://news.google.com/newspapers?id=le5VAAAAIBAJ&pg=3256%2C2111076 |work=Eugene Register-Guard |location=Oregon |agency=Washington Post |title=Chrysler plans to buy out rival |date=March 10, 1987 |page=1A |access-date=September 21, 2020 |archive-date=February 15, 2022 |archive-url=https://web.archive.org/web/20220215000526/https://news.google.com/newspapers?id=le5VAAAAIBAJ&pg=3256%2C2111076 |url-status=live }}</ref><ref name=wmsnytes>{{cite news |url=https://news.google.com/newspapers?id=CeEyAAAAIBAJ&pg=3500%2C4320252 |work=Wilmington Morning Star |location=North Carolina |agency=(''New York Times'' News Service) |title=Chrysler agrees to buy out struggling American Motors |date=March 10, 1987 |page=1A |access-date=September 21, 2020 |archive-date=August 27, 2021 |archive-url=https://web.archive.org/web/20210827004835/https://news.google.com/newspapers?id=CeEyAAAAIBAJ&pg=3500%2C4320252 |url-status=live }}</ref><ref name=ctbaa>{{cite news |url=https://news.google.com/newspapers?id=cagpAAAAIBAJ&pg=7299%2C5148234 |work=Spokesman-Review |location=(Spokane, Washington) |agency=Associated Press |title=Chrysler to buy ailing AMC |date=March 10, 1987 |page=A1 |access-date=September 21, 2020 |archive-date=February 15, 2022 |archive-url=https://web.archive.org/web/20220215033933/https://news.google.com/newspapers?id=cagpAAAAIBAJ&pg=7299%2C5148234 |url-status=live }}</ref> Chrysler made no secret that they were only interested in AMC for Jeep, AMC's new assembly plant in Canada, and AMC's network of 1,300 dealerships nationwide. Chrysler president Lee Iacocca was quoted in the March 10, 1987 [[LA Times]] as saying: {{blockquote|For Chrysler, the attractions are Jeep, the best-known automotive brand name in the world; a new . . . assembly plant at Bramalea, Canada, and a third distribution system giving us access to a larger market.<ref>{{cite news |title=Chrysler Plans to Buy AMC for $757 Million: Reaches Accord on Purchasing Renault's 46.1% Interest; Wants Jeep, Assembly Plants, Dealers |first=James |last=Risen |date=March 10, 1987 |url=https://www.latimes.com/archives/la-xpm-1987-03-10-mn-5919-story.html |newspaper=Los Angeles Times |access-date=August 6, 2021 |archive-date=August 6, 2021 |archive-url=https://web.archive.org/web/20210806022157/https://www.latimes.com/archives/la-xpm-1987-03-10-mn-5919-story.html |url-status=live }}</ref>}} With the sale complete, American Motors became the [[Jeep-Eagle]] division of Chrysler on August 25, 1988, and was fully merged as of March 29, 1990.<ref name=cofs.lara.state.mi.us /> <ref name=aappbuo>{{cite news |url=https://news.google.com/newspapers?id=4e5VAAAAIBAJ&pg=5673%2C1355597 |newspaper=Eugene Register-Guard |location=Oregon |agency=Associated Press |title=AMC approves Chrysler buyout |date=August 6, 1987 |page=2E |access-date=September 21, 2020 |archive-date=August 28, 2021 |archive-url=https://web.archive.org/web/20210828004403/https://news.google.com/newspapers?id=4e5VAAAAIBAJ&pg=5673%2C1355597 |url-status=live }}</ref><ref name=wmsctov>{{cite news |url=https://news.google.com/newspapers?id=vLkyAAAAIBAJ&pg=3703%2C2330843 |work=Wilmington Morning Star |location=North Carolina |agency=New York Times News Service |title=Chrysler completes $1.5 billion AMC takeover |date=August 6, 1987 |page=6B |access-date=September 21, 2020 |archive-date=June 13, 2021 |archive-url=https://web.archive.org/web/20210613183934/https://news.google.com/newspapers?id=vLkyAAAAIBAJ&pg=3703%2C2330843 |url-status=live }}</ref> The sale came at a time when the automotive press was enthusiastic about the proposed 1988 lineup of Renault, Eagle, and Jeep vehicles and reported that the small automaker's financial outlook was improving. American Motors' quarterly results for all of 1987 were positive. Chrysler purchased American Motors when the company appeared to be in an excellent financial position with its new product line.<ref name=holusha/> It was the Jeep brand that Chrysler CEO [[Lee Iacocca]] wanted β in particular, the ZJ [[Jeep Grand Cherokee|Grand Cherokee]], then under development by Jeep engineers, which ultimately proved highly profitable for Chrysler (the nameplate remains in production today). However, the buyout included other attractive deal sweeteners for Chrysler. Among them was the world-class, brand-new manufacturing plant in [[Bramalea, Ontario]], which offered Iacocca an unprecedented opportunity to increase his company's [[Capacity utilization|production capacity]] at a fire-sale price. American Motors had designed and built the plant in anticipation of building the [[Renault 25]]-based [[Eagle Premier]]. Additional profitable acquisitions were the American Motors dealer network (the addition of which strengthened Chrysler's retail distribution β many American Motors dealers switched to selling Chrysler products), and American Motors' underrated organization and management talent β which Chrysler quickly assimilated (numerous leading Chrysler engineers and executives were ex-American Motors).<ref>{{cite magazine |url= http://wardsautoworld.com/ar/auto_daimlerchrysler_ifs/index.html |title=DaimlerChrysler: The 'What Ifs?' |magazine=Ward's AutoWorld |date=June 1, 1998 |access-date=August 31, 2012 |archive-url= https://web.archive.org/web/20110728081757/http://wardsautoworld.com/ar/auto_daimlerchrysler_ifs/index.html |archive-date=July 28, 2011 }}</ref> Renault left the U.S. market entirely as a brand in 1987. Thus, the Renault Medallion was sold through the new [[Jeep-Eagle]] division as an Eagle, not a Renault. The Jeep-Eagle division was formed from the American Motors Jeep Renault dealer network. The [[Jeep]] and [[Eagle (automobile)|Eagle]] vehicles were marketed primarily by former American Motors dealers. The American Motors badge was last used on the Eagle Sports Wagon through the 1988 model year, then eliminated, and the Eagle car brand was phased out by 1998.
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