1950s American automobile culture
During the decade, many smaller manufacturers could not compete with the Big Three and either went out of business or merged. In 1954, American Motors was formed when Hudson merged with Nash-Kelvinator Corporation in a deal worth almost $200 million, the largest corporate merger in United States history at that time.
American Motors Corporation
AMC's managers anticipated important trends in the automotive industry. It preached fuel efficiency in the 1950s, long before most auto buyers demanded it. Led by AMC's Rambler and several European cars, the small car innovation reduced the Big Three's market share from 93% in 1957 to 82% in 1959. The company inherited foreign manufacturing and sales partnerships from Nash and continued developing business relations, decades before most of the international consolidations among automobile makers took place. AMC was the first U.S. automaker to establish ownership agreement with a foreign automaker, Renault.
Although small in size, AMC was able to introduce numerous industry innovations. Starting in 1957, AMC was the only U.S. manufacturer to totally immerse all automobile bodies in primer paint for protection against rust, until competitors adopted the practice in 1964. Even one of AMC's most expensive new product investments (the Pacer) established many features that were later adopted by the auto industry worldwide. These included aerodynamic body design, space-efficient interiors, aircraft style doors, and a large greenhouse for visibility. AMC was also effective in other areas such as marketing by introducing low rate financing. AMC's four-wheel drive vehicles established the foundation for the modern SUV market segments, and "classic" Jeep models continue to be the benchmark in this field. Roy D. Chapin drew on his experiences as a hunter and fisherman and marketed the Jeep brand successfully to people with like interests. The brand developed a cult appeal that continues.