The 1954 merger of Nash-Kelvinator Corporation and Hudson Motor Car Company, and the creation of American Motors, was led by George W. Mason to reap benefits from the strengths of the two firms to battle the much larger "Big Three" automakers (General Motors, Ford, and Chrysler).
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 original 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.
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