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AMC and Renault in the United States, a business adventure of the eighties

Although Renault has been a very symbolic company for France, especially after its nationalization after the Second World War, during the eighties it tried to expand in the convulsive North American market in full reconfiguration after the Oil Crisis. An intense business adventure in which he became the majority shareholder of AMC, launching models received in such an irregular manner as the Alliance based on the R9.

In Alpine's history it is difficult to overlook the importance of the various national variants. Never thought of from the headquarters in France, but admitted as a logical consequence of the autonomy acquired by the manufacturers that produced Renault and Alpine models under license. In this way, in Spain, FASA produced series with its own specifications in the A108 and A110. In addition, Brazil had its own A108 under the name of Willys Interlagos and Mexico a whole range gathered around the Dinalpine appellation. Thus, although Renault has not undergone an international expansion process like FIAT's - with its own models for developing markets - it has been one of the most important European manufacturers on a global scale.

Proof of this is Georges Besse's eagerness to enter the North American market in the early eighties. Something that is understood within his strategy to revive the still state-owned Renault. Mission for which he was appointed director of the same by the government of the socialist François Mitterrand. In this way, the house of the rhombus began a period of expansion into new markets by signing alliances with other manufacturers such as AMC in the United States. But also a traumatic labor policy in which there were almost 21.000 layoffs in just over a year and a half. In fact, this very thing was what brought about the end of Goerges Besse. Killed by the terrorist group Action Directe on November 17, 1986 in response to that management.

A terrible and abrupt end for this key engineer in the appearance of the Renault Alliance and Encore. Models based on the R9 and R11 with the North American market in the sight. Moreover, they were manufactured in Wisconsin within the facilities of the American Motors Corporation. Founded in 1954 and always in the shadow of the big three in Detroit, which saw these models as what should have been its lifeline after a decade marked by the effects of the 1973 Oil Crisis. Year to which we must go back if we want to understand the reasons that led to the appearance of these North American variants on compact Renault models.

AMC, THE DIFFICULT SITUATION OF A SECOND-LINE BRAND

Although the North American market has never experienced a true monopolistic situation in the automotive field, the truth is that its motoring has been dominated by a few companies. Known as The Big Three, the triad made up of Ford, Chrysler and General Motors have enjoyed great influence in the government and the market based on their immense capital. Thanks to this, the industrial policies of the North American administration have almost always been consistent with its interests. Having in the new security regulations dictated in the seventies one of the few exceptions in which there has been a publicly shown clash of interests.

However, beyond the hegemony of these three manufacturers, there were other brands that dared to enter the mass and general motoring sector. One of them was AMC, entering a dangerous league where surviving was already an achievement. Thus, during the fifties and seventies it specialized in offering family models. Relatively affordable and, by the North American definition of a car, quite compact. Thanks to that AMC carved out a niche for itself in the C-segment in the United States., counting as the main disadvantage its narrow financial capacity to create new designs.

Something fundamental in the late sixties. Since, facing the new decade, an increase in sales was expected in terms of compact -segment C- and subcompact -segment B-. Because of this, AMC went to great lengths to introduce the 1970 Gremlin. An interesting three-door equipped with a huge and practical tailgate with which it faced the Ford Pinto and the Chevrolet Vega. Also, According to North American standards the Gremlin enjoyed a very low consumption when marking 8 liters to the hundred in combined cycle. At this point, everything seemed to be on the right track heading into the XNUMXs.

THINGS GET WORSE WITH THE OIL CRISIS

If we know anything from the pure course of history, it is that things can always go for the worse. In fact, when least expected, a problem can erupt out of nowhere capable of turning everything upside down. Just what happened when in 1973 OPEC decided not to export any more oil to the countries that had supported Israel in the Yom Kippur War. In this way, a local conflict with the borders between Israel, Egypt and Syria as the main point of contention became an international problem capable of strangling the western economy. Vigorous and creative. But at the same time totally dependent on this finite resource and affected by geopolitics.

With all this, the automobile industry experienced one of its most problematic but also most creative moments. Suddenly, engineering became feverish because everything established in terms of consumption had to be reconsidered. Also, it had to be done quickly. the rise in the price of gasoline required more efficient engines here and now. Thus, even in the United States, compact and lightweight models began to dominate the market. Therefore, AMC invested the profits that were coming from the Gremlin in producing the 1975 Pacer.

A model that was going to be revolutionary and that in part it was. Designed from the inside out to give maximum interior space without sacrificing a compact body. Although, mechanically, he ended up mounting a six-cylinder in-line that did not put the consumption at the desired low height. In fact, the ones that were going down at a fast pace were the sales of AMC. All this to influence the already complex finances of the company, compromised from before by the efforts made in development.

THE APPEARANCE OF RENAULT

Still mired in dire business straits, AMC had at least two reasons for optimism. The first was that in 1970 it had acquired the manufacturing rights to Jeep. A myth of North American motoring that also sold very well in other markets. However, the truth is that with the consequences of the Oil Crisis still on the table SUVs weren't selling particularly well. Still, there was a second reason. And it is that AMC enjoyed a good marketing network throughout the territory of the United States.

In addition, it had its own large factories and extensive technical experience. Thanks to this, it was the perfect platform for any foreign brand that wanted to settle in the United States. aware of this, AMC managers opened negotiations with various Japanese and European manufacturers, specifying with the pact signed with Renault in 1978. A very complex year, as AMC had to review almost 320.000 vehicles produced two years earlier due to the order issued by the Environmental Protection Agency. Undoubtedly a call to the factory to correct emission failures that put the finishing touch to the company's dwindling accounts.

In fact, as a result of this the banks denied credit to AMC. A situation from which Renault benefited, going from a 22% stake in 1978 to being the main shareholder since 1980 with up to 49% in 1983. Due to this, the senior positions of the North American company began to be occupied by directors appointed from Paris. A fact that had a direct impact on AMC's day-to-day, since ordered a complete rationalization of production systems at its outdated Wisconsin factory. In addition, although the Jeeps would be respected, the rest of the range should be made up of familiar and popular models with front-wheel drive.

Decision that caused the appearance in 1983 and 1984 of the Renault Alliance and Encore based on the R9 and R11 respectively. Two models that would be manufactured with the intention of achieving a good market share. And it is that, months before, the launch of the Fuego, R5 -called in America Le Car- and R18 was done in a very timid and therefore unsuccessful way. far from this, All possible effort was put into the Alliance harvesting some great reviews by the press. Surrendered to the benefits of a European compact that was also offered with mechanics full of nerve to put sportsmanship on a daily basis. And all this topped with an interesting convertible version.

As far as the Encore is concerned, the truth is that the success was not as noticeable as in the case of the Alliance. Retouched for the United States - where wide bumpers were needed for homologation - its lines never convinced. A first point of disappointment that kicked off the bad end of the joint experience between AMC and Renault. Let's see. To begin with, by the mid-1973s the effects of the XNUMX Oil Crisis were already far behind. And since the goat always shoots the bush, in the United States they put aside the attention paid to compacts “European style” to return to desire models with large displacements and sizes.

In addition, in what was left of the market share for compact and urban vehicles, Japanese manufacturers were able to capture the majority of the market thanks to their attractive lines, efficient mechanics and good prices. Result? According to the Renault models they began to sell well -the Alliance passed 600.000 units-, these were buried by a market that was no longer interested in applying Renault designs to the prairies of the Midwest. At this point, in 1988 Renault sold its shares in AMC to Chrysler. Company that was especially interested in giving Jeep a new air that, by the way, was a commercial success. The end of the brief but hectic business adventure in which Renault was the owner of an American company.

Photographs: Renault

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Written by Miguel Sánchez

Through the news from La Escudería, we will travel the winding roads of Maranello listening to the roar of the Italian V12; We will travel Route66 in search of the power of the great American engines; we will get lost in the narrow English lanes tracking the elegance of their sports cars; We will speed up the braking in the curves of the Monte Carlo Rally and we will even get dusty in a garage while rescuing lost jewels.

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