American automobile industry in the 1950s
In 1954, the smaller American Motors Corporation (AMC) was formed when Hudson merged with Nash-Kelvinator Corporation in a deal worth almost USD $200 million ($1.735 billion in 2013 dollars) the largest corporate merger in U.S. history at that time. Other mergers with smaller independent manufacturers followed. Although AMC was moderately successful it was never sufficiently large to challenge any of the Big Three, and was eventually bought by Chrysler in 1987.
American Motors Corporation
Within a year, George W. Romney, future governor of Michigan, took over, reorganizing the company and focusing AMC's future on a new small car line. By the end of 1957 the legacy Nash and Hudson brands were completely phased out. The company struggled at first, but Rambler sales took off. A Rambler won the 1959 Mobil Economy Run and by 1960, was the third most popular brand of automobile in the United States, behind Ford and Chevrolet. After two model years (1963 and 1964) of only producing compact cars, AMC focused back to larger and more profitable cars like the Ambassador line from the perceived negative of the Rambler's economy car image. In the face of deteriorating financial and market positions, Roy D. Chapin, Jr., took charge to revitalize the company, and designer Richard A. Teague economized by developing several vehicles from common stampings. While prices and costs were cut, new and more sporty automobiles were introduced, and from 1968 AMC became known for the Javelin and AMX muscle cars.