American Motors Corporation
In January 1954, Nash-Kelvinator Corporation began acquisition of the Hudson Motor Car Company (in what was called a merger). The new corporation would be called American Motors Corporation. (An earlier corporation with the same name, co-founded by Louis Chevrolet, had existed in New Jersey from 1916 through 1922 before merging into the Bessemer–American Motors Corporation.)
American Motors Corporation
The continuing quest "in the business world's toughest race – the grinding contest against the Big Three automobile makers" also meant annual styling changes requiring large expenditures. American Motors' management total confidence "that the new 1965 models would stem a bothersome decline" actually began falling behind in share of sales. Moreover, a new line of redesigned cars in the full and mid-sized markets was launched in the fall of 1966. The cars won acclaim for their fluid styling, and Abernethy's ideas did work as Ambassador Sales increased significantly. The dated designs of the Rambler Americans, however, hurt its sales which offset gains from Ambassador sales. There were quality control problems with the introduction of the new full-sized cars, as well as persistent rumors of the company's demise because of their precarious cash flow. Consumer Reports negative ratings for AMC's Safety didn't help either.