American Motors Corporation, the prestigious and eminent name amongst the top commanding companies dealing with the manufacturing of motor vehicles. American Motors Corporation was established on January 14, 1954, with the culminated effort of three cerebral personalities Thomas B. Jeffrey, Nash and Hudson. The merger between the Nash-Kelvinator Corporation and the Hudson Motor Car Company was one of the most prevailing mergers in the history of amalgamations.
However the American Motors Corporation couldn’t somehow muddle through the changing market statistics, severe competition and emerging technologies. By 1957, Hudson and Nash were completely out of the picture. In order to revive from the trouncement received by its rivals; the American Motors Corporation was vended to the Chrysler Corporation . Thereafter since 1958, all models produced by the company were under ‘Rambler’ marque.
In the 1960’s American Motors Corporation had a stupendous sales figure, it has spread its assembling plants worldwide. But the success tenure of the firm lasted for a very squat time frame. Their narrow vision and consideration on only short term goals was the major cause for their downturn. American Motors Corporation lacked in a constructive planning procedure. Millions of dollars were frittered away on poorly envisaged models which were running on antediluvian technology and ad lib structures. Though AMC tried their level best to incorporate the latest tools and equipments, engines which it purchased from Volkswagen but their turnover was never enough to justify the total production American Motors Corporation could never revive back from the jolt and surrendered itself to the giant Chrysler Motors in 1987, which purchased it for a stumpy price.
Though the fall of American Motors Corporation is bona fide, but the fame and honour the company has earned once upon a time for its incredible masterworks can’t be condoned. Few of the classic models produced by AMC were the AMC Eagle, AMC Pacer, AMC Hornet, AMC Concord, Rambler Ambassador, AMC Matador and many more. The Chrysler Motors revived the spirits of the brand name which was lost by the American Motor Corporation; it launched the Eagle Medallion in 1988 and 1989 which was earlier known as Renault Medallion. The Chrysler Concorde was another reinforced and redesigned AMC model
The Chrysler was able to sustain the Jeeps which were developed by the American Motors Corporation for quite a long time, for instance the Jeep Grand Cherokee, was nurtured by Chrysler though originated from the AMC.
The American Motors Corporation did indulge itself in a number of other commodities which it finally sold off, for instance The ‘Kelvinator’ is now owned by ‘Electrolux’, and The Wheel Horse Products division is now under the possession of Toro Company. Though the strategies formulated b y the AMC were brilliant but the lack of vision among the key players of the company led to its demise.
It is been observed that the purchase of the American Motors Corporation by Chrysler's helped him to strategize and overcome its pitfalls to re-establish and regain its strength back in 1990’s.
