Essay about American Motors Corporation : An American Automobile Company
American Motors Corporation (AMC) was an American automobile company was founded January 1954. In 1954 two leading manufacturers of automobiles, Nash-Kelvinator Corporation began the buying process of the Hudson Motor Car Company. This formed a merger between the two businesses, at the time, this was the largest corporate merger in U.S. history. Concerned with the merger were more than 30,000 employees, 58,000 stockholders and 10,000 American Motors dealers and distributors in more than 100 countries. The new corporation would be called American Motors Corporation also known as AMC. Thus, forming the fourth-biggest auto company in the U.S.
“From 1954 through 1957 the company did not report a single profit. Each of its first four annual reports, American Motors recorded losses before tax adjustments varying from a low of approximately $12 million to a high of almost $29 million per year, the firm’s largest loss having occurred in 1956” (Thomson Gale, 2006). Although American Motors had a huge fall in their automotive operations, the corporation survived. “In fact, the company staged one of the most impressive comebacks in the history of American business, earning more than $25 million before taxes in 1958, $105 million in 1959, and equally large profits in the following years.” (Thomson Gale, 2006). The success of the business was due to the help of the newly designed Rambler in 1958 (as seen in appendix A). Nash and Hudson introduced a new…