The Last Independent Automaker

[Suspicious walking bass music] NARRATOR: In the winter of 1948, a long distance phone call from Detroit interrupted George Mason's trip in Bermuda.

[Phone rings] NARRATOR: The cigar-loving, larger-than-life president of the Nash-Kelvinator Corporation was shocked to hear that his friend George Romney, a thin, devout Latter-Day Saint, was resigning as director of an auto industry trade group to become a vice president at the Packard Motor Car Company.

Seizing the moment, Mason urged Romney to wait, and began forming an offer from Nash.

NARRATOR: Neither knew it, but in time, they would build the foundation of a company that would forever change the automotive world.

From 1954 to 1987, American Motors Corporation manufactured over 12 million sedans, coupes, station wagons, hatchbacks, sports cars, trucks, SUVs, and more.

[Whoosh of car driving by] It had factories across the continent and sales around the globe, employing tens of thousands of engineers, designers, machinists, welders, laborers, salesmen, mechanics, secretaries, and executives.

[Engine revs] Always the underdog, American Motors thrived on being different.

But as the cutthroat industry grew even more brutal, it would all come crashing down.

[Explosion] As America lost its last independent automaker.

[Patriotic music] ANNOUNCER: Funding for The Last Independent Automaker was provided in part by... [Driving rhythmic music] WOMAN: We are Detroit.

And when we move, you move.

ANNOUNCER: Funding was also provided by...

The Alfred P. Sloan Foundation... MotorCities National Heritage Area... And also...

For a complete list of funders, visit APTonline.org [Upbeat jazz music] NARRATOR: In February 1948, George Mason invited George Romney to the Nash-Kelvinator headquarters in Detroit with a job offer.

12 years prior, Mason had been head of the Kelvinator appliance corporation, when Charlie Nash personally convinced him to merge with Nash Motors and run both companies.

PATRICK FOSTER: Charlie Nash wanted George Mason, because Walter Chrysler told him, "This is a hard charging, with-it executive, and this is the guy to run your company."

Once Charlie made his mind up, he wouldn't look at anybody else, he wouldn't talk to anybody else.

Mason was the guy he was going to get.

NARRATOR: A decade later, Mason now wanted the young, enthusiastic Romney as his successor-in-training.

NARRATOR: He gave him a tour and showed him Nash's upcoming car designs.

What impressed Romney most was the prototype for an all-new small car.

No American company had anything like it.

But he left undecided.

Nash offered less money and prestige than Packard, but had one big advantage.

FOSTER: George Mason had told him he would give him training and teach him every aspect of the automobile business, and that he was in line for succession.

NARRATOR: As with all hard choices, Romney devoted himself to fasting and prayer.

Then he accepted Mason's offer, sold the family Cadillac, and bought himself a new Nash.

[Ratchets clicking, tools clinking] NARRATOR: Nash-Kelvinator's largest assembly plant started as a former bicycle factory in Kenosha, Wisconsin, which Thomas B. Jeffery bought in 1900 to launch his new car company.

16 years later, his son sold the business to Charlie Nash.

As part of his training, Romney now joined the assembly line at the sprawling, 100-acre Nash Motors complex.

[Factory noises] FOSTER: He worked in the Kelvinator plant, he worked in the Nash plant, he took the repairman's course.

And then he cycled through every department in the corporate headquarters.

So he got a well-rounded education.

NARRATOR: Within two years he was promoted to Vice President, and assigned a peculiar new job duty.

FOSTER: George Mason, as I said, was a very kindly man.

He couldn't fire anybody, so he gave it to George Romney.

And George did, you know, without hesitation.

NARRATOR: By 1950, almost nine out of every ten cars sold in America came from General Motors, Ford, or Chrysler, industry titans known as "The Big Three."

The rest belonged to the smaller "independents," including Studebaker, Nash, Hudson, Packard, and others.

Mason had proposed the independents merge to better compete with the Big Three, but was rebuffed, as sales were booming in the wake of World War II.

FOSTER: For every car that was being built, there were two people that wanted it.

Demand was out of control, but it started to slow.

[Crowd noise] NARRATOR: To keep buyers interested, Nash launched the new small car that had impressed Romney two years prior.

COMMERCIAL VOICEOVER: Take a good look at this!

It's that completely new Nash Airflyte Rambler Convertible.

A new kind of car.

NARRATOR: Named after Thomas Jeffery's first car, the 1950 Rambler was smaller than anything "The Big Three" made, but larger than rarely-seen foreign cars.

FOSTER: The problem with small cars; in the 50s and 60s, small equated cheap.

And then they got a reputation for being cars for poor people because they were cheap.

[Jazz music ends] NARRATOR: To counter this, the Rambler came as a luxury convertible, but was still easy to drive and easy on gas.

[Upbeat string music] To avoid labeling it as "small", Romney coined the term, "compact car."

FOSTER: Because it was so beautifully trimmed; so well equipped, it became known as a smart car for young people on their way up.

And George Romney told me once, you know, we never knew how many friends we had, until we came out with the Rambler.

"George, can you get me one of those Nash Ramblers?

George, I went to my dealer.

I can't get a Nash Rambler, can you get me one?"

NARRATOR: From market research, Mason and Romney knew Americans were moving from cities to suburbs, and buying more cars.

MITT ROMNEY: My dad's view was that Nash should make everybody's second car.

If they want to have a fancy Ford or Chevy, or whatever, great.

But the right car for their second car in every driveway should be a Rambler.

NARRATOR: The convertible was soon joined by a hardtop and station wagon, along with compact competition from Kaiser, Hudson, and Willys.

But rivals couldn't match the Rambler's success.

NARRATOR: This, combined with strong sales of the larger Nash Statesman and Ambassador, later joined by the British-built Nash-Healy and Metropolitan, kept the company in good financial shape.

Other independents weren't so lucky.

[Dixieland music] WILLIAM CHAPIN: My grandfather, Roy Chapin, started the Hudson Motor Car Company with a couple of other people, and he got in on the ground floor of the automobile business here in Detroit.

NARRATOR: From its founding in 1909, Hudson became one of the largest independents.

Guided by conservative president A.E.

Barit, Hudson launched groundbreaking new "Step-Down" models in 1948.

CHAPIN: My dad would come home with one of those cars, and all my friends would want to come over and see it.

It was like a rocket ship landed in my garage.

[Engine starts and revs] NARRATOR: Streamlined with a low center of gravity, the step-down models became the best-handling cars on the road... ...and track.

NARRATOR: In 1951, Hudson became the first automaker to sponsor a NASCAR team.

[Racetrack noises] [Crowd cheering] NARRATOR: But, the innovation became a liability, as Hudson couldn't afford to redesign the complex body for changing tastes.

JOSH GREENPLATE: The step-down cars were revolutionary in '48, but they had no real ability to update that body shell.

They never had a wagon, they couldn't develop a V8, and that's what the car-buying public wanted at the time.

NARRATOR: In 1952, sales fell by half.

NARRATOR: With dozens of brands across price points, GM, Ford, and Chrysler could afford expensive redesigns almost every year.

Unlike the independents.

FOSTER: To get your costs low, you have to have volume sales.

You can't be selling 100,000 cars, you've got to be selling 400 or 500,000 of basically the same car.

NARRATOR: George Mason had been right.

As the market cooled, sales dropped, and by 1953, merging became a matter of survival.

Kaiser and Willys paired off first.

Deciding that Studebaker wasn't a good fit, Mason re-approached Hudson and Packard.

[Dark, intense music] NARRATOR: Then disaster struck, when Henry Ford II launched an all out sales war against General Motors.

Soon Chrysler joined in, as inventories surged, prices fell, and buyers stampeded after the bargains.

CHAPIN: All of a sudden, if you didn't have a less expensive, even medium to lower priced car, the market was pretty devastating at that point.

NARRATOR: Hudson's new compact, the Jet, flopped, as the independents just couldn't match "The Big Three's" discounts.

FOSTER: Did Henry Ford know that he was killing Nash and Hudson and all the other independents when he started the sales war?

I don't know, but that's in fact what he did.

NARRATOR: Meanwhile, Packard President James Nance told Mason he would only agree to a merger if he could be in charge, despite having less experience.

Mason refused.

Facing a disastrous 10 million dollar loss, Hudson was more receptive-and desperate.

A.E.

Barit would forfeit his positions, but keep a seat on the board of directors.

GREENPLATE: Nash basically became the lead partner, even though it was categorized as a merger.

I don't think they had a choice, and I don't think either of those companies would've survived more than a few more years independently.

[Triumphant music, camera flashbulb noises] NARRATOR: On January 14th, 1954 Mason, Barit, and Romney announced the merger of the Nash-Kelvinator Corporation and the Hudson Motor Car Company, at the time, the largest corporate merger in U.S. history.

Mason himself created the name for the new company: American Motors Corporation.

AD VOICEOVER: We know how important an automobile is to hunting and fishing these days, and we've incorporated in the 1950 Nash Airflyte important features to add to the pleasure of your trip.

FOSTER: Nash became known as a sportsman's car because it had the seats that converted into a bed, and you could take to your favorite secret fishing hole and start fishing at the break of dawn.

George Mason was an avid outdoorsman, just loved fishing!

[Water splashing] NARRATOR: That October, Mason was on a fishing trip in Wyoming, when Packard announced a merger with Studebaker, with Nance at the helm.

Upon his return, Mason suddenly fell seriously ill and checked into Detroit's Harper hospital.

Romney visited him daily, as they discussed a possible manufacturing deal with Packard, and a new sales executive Romney wanted to hire, named Roy Abernethy.

Mason seemed in good spirits, until one night, his condition suddenly worsened.

[Men talking in background] [Phone rings] NARRATOR: George Romney was in the styling studios at American Motors on Friday, October 8th, when the phone rang.

At 11: 45 that morning, his boss, mentor, and friend, George Mason, had died.

[Mournful piano music] NARRATOR: At the funeral, Romney spoke of Mason's kindness and generosity.

Unfortunately, the warmth didn't last.

The next day, he found himself in a boardroom battle over Mason's plan to leave him in charge.

FOSTER: They just felt Romney was a little bit too young, and hadn't been there long enough.

Well, he'd been in training for almost 6 years.

And it took Romney, I think, two full days to convince the board to make him the head of the entire company.

NARRATOR: The sales war had decimated the independents.

But Romney had a vision: The Rambler was the car of the future, and American Motors would build its future on it.

[Upbeat tempo jazz; distant factory whistle blows] DANIEL WOJEIECHOWICZ: One friend, he says to us, "Boys come on.

Tomorrow I'm going to come and bring you to Nash, and you're going to apply for a job."

We were still not very fluent with English, but he says, "You come to work tomorrow.

All of us."

NARRATOR: Hired on September 24th 1951, Daniel Wojeiechowicz and his three brothers were part of thousands who left war-torn Europe for a better life in America and the auto industry.

Within the country, a wave of African Americans were also moving north in search of jobs and respect.

[Factory noise; men yelling over loud machines] JOHN DREW: Coming to the north to escape the segregation and the inferior education and the Jim Crow Laws, and for these good paying union jobs was, was huge.

NARRATOR: While prospects were better, discrimination persisted, as many were given grueling work in the foundry.

ANTHONY BROWN: That was the only place where a lot of minorities worked, because there were some of the dirtiest jobs.

And they told me at one time in that area, you couldn't see from one end of the building to the other, inside!

Air quality was so bad.

[Factory noises] NARRATOR: In less dangerous areas, factory work could still be repetitive and exhausting.

WOJEIECHOWICZ: They put us on assembly line to tighten the bumpers.

And my gosh, after one hour or so, I thought, "What the heck!

This is crazy.

It don't stop.

The line doesn't stop!

When are they going to stop?"

Then later on, I came home, and could hardly sleep because my arm was killing me.

I was only 17.

I never had this kind of job before, [laughs] but I was determined to work.

NARRATOR: By 1954, the majority of AMC labor was represented by Kenosha's Local 72 chapter of the United Auto Workers Union or UAW.

WOJEIECHOWICZ: A lot of people objected to the dues that they had to pay but the union was a very good protector of the workers.

[Stepping jazz music] NARRATOR: To keep the factory humming, Kenosha also employed hundreds of office workers.

GENEVIEVE WATRING: I graduated from high school and I started at Nash.

I worked there for about two years, and quit because I had my first child.

I went back in the factory, because they paid more than the office did; worked beside my mother in law for the last year or two!

NARRATOR: Wages in the plant were good, though job security was tied directly to car sales.

[Factory noise] NARRATOR: To cut costs, Hudson's Detroit factories were shuttered along with the old Hudson models.

All 1955 Hudsons were based on existing Nash cars.

The Hudson Rambler and Metropolitan were obvious clones, but the Hudson Hornet and Wasp tried harder to disguise their roots.

GREENPLATE: They had to build in Kenosha on the bodies that were available.

So they didn't have a lot of choice in the matter.

It was either rebadged Nash bodies or not have a lineup.

[Jazz music ends] NARRATOR: Loyalists derided the new cars as "Hashes," but there were improvements, including industry-leading air conditioning, co-developed with Kelvinator.

[Bass-walking jazz] NARRATOR: New for both Hudson and Nash that year was an optional V8 engine built by, Packard.

FOSTER: All of a sudden everybody wanted a V8 engine.

A six, which used to be considered more than adequate, was considered inadequate now.

NARRATOR: Customers wanted more power, and with no V8 of its own, American Motors turned to Packard.

In return, Studebaker-Packard would purchase other components from AMC.

But things went sour when, intentionally or not, Studebaker-Packard didn't reciprocate, and James Nance stonewalled Romney's attempts to contact him.

FOSTER: When he discovered that Studebaker-Packard was regnegging on that agreement; they never purchased the parts that they said they were going to, he was livid!

NARRATOR: Romney ordered his engineers to design a new V8 in-house.

AMC could hardly afford the 10 million dollar price tag, but he was determined to cut ties with Nance.

[Jazz music ends] Let's look at the 1954 Nash Airflytes ELF: Ambassador!

Pinin Farina's newest automobiles ELF: The Statesman!

See your dealer, looking inside, get a key, and take a ride It's a new way of life on wheels ELF: Love that Nash Rambler!

A new way of life on wheels!

MAN: Only Nash... NARRATOR: Starting in 1954, American Motors began sponsoring an exciting new TV show and upcoming theme park, called Disneyland.

ROMNEY: I got a chance to meet Walt Disney with my dad, and I do remember going with him and seeing the American Motors exhibit at Disneyland!

He was one of the very first advertisers.

GEORGE ROMNEY: And our Rambler is now the lowest priced car on the market.

Every model is priced below the Chevrolet, Ford, and Plymouth models, similarly equipped.

[Children cheering] NARRATOR: But advertising couldn't hide that AMC's cars were growing stale, and it didn't have the money to redesign all of them.

ROMNEY: People bought cars like every other year, because each two years the car companies changed what the cars looked like.

Not American Motors; we couldn't afford that!

But many car companies changed them pretty dramatically every two years.

NARRATOR: Sales of the full-size Nash and Hudson models had slumped.

In response, Romney plowed AMC's scarce funds into a new Rambler for '56.

Then launched a speaking tour to promote it.

ROMNEY: People used to say he had missionary zeal.

Which meant that he was very, very passionate.

GEORGE ROMNEY: "The Big Three" have given us an unusual opportunity.

They've been making the Chevrolet, the Plymouth, and the Ford bigger and bigger through the years.

And the result is that, people wanted economical vehicles.

We have a car in the Rambler that fits better than any other car on the road.

NARRATOR: Unfortunately, sales got worse, not better.

And the newly-hired Roy Abernethy found himself placating dealers who threatened to leave for other brands.

As yearly losses approached 20 million, Romney scrambled to slash expenses, including his own salary.

FOSTER: He started cutting costs like crazy at American Motors, and one of the things they changed from, toilet paper on a roll to sheet toilet paper, and if you've never seen it; it's awful stuff, but they got their breakeven down below 150,000 cars a year, which was amazing.

NARRATOR: Next, he planned to end production of all Hudson and Nash cars.

Except for the imported Metropolitan, after 1957, AMC would only sell Ramblers.

Infuriated with Romney's decision, A.E.

Barit resigned.

CHAPIN: I know he gets the credit, as he should, but he had no choice.

American Motors was just losing tons of money on its bigger cars.

He looked at the portfolio and said, "I've only got one road to go."

[Stadium crowd cheers] NARRATOR: On a cool September evening in Kenosha, Romney addressed a crowd of AMC workers.

ROMNEY: He somehow believed that the Rambler was the answer to everyone's problems, and spoke about the car and the company and the people as if it was a great cause.

"We cannot have, and I want to emphasize this because it is vital to every one of us, another year like 1956 in 1957 and survive.

We cannot.

If we fail to take advantage of our opportunity, it will not be because General Motors, Ford, or Chrysler has prevented us from doing it.

Our success or our failure in 1957 is largely in our own hands."

[Applause] [Sad Christmas music plays] NARRATOR: A lavish corporate party was out of the question that Christmas, but Romney insisted on a celebration, no matter how modest.

ROBERT MONACELLI: Before we left for Christmas vacation, we gathered in the garage downstairs and he would lead the singing and singing Christmas carols, which I thought was kind of neat.

NARRATOR: Meanwhile, the New York Times business section gloomily proclaimed, "American Motors Deeper in the Red."

as sales continued to slide.

FOSTER: It was a very difficult time.

A lot of people left the company because they didn't have faith in it.

You know, when you're working 50-60 hours a week and, and you just got your salary cut, it's tough to remain upbeat.

NARRATOR: In private Romney confessed, "If I could have one wish granted, it would be for the public to have faith in American Motors."

[Sea gulls] [Driving big band jazz music] NARRATOR: In February of 1957, the annual Daytona Beach Speedweeks was wowed by the new Rambler Rebel.

[Engine revs] NARRATOR: With AMC's powerful new V8, the limited-edition Rebel became the second-quickest car in America, behind only the Chevrolet Corvette.

[Engine roars] Narrator: However, economy cars remained Romney's top priority, and as the competition kept getting bigger, heavier, pricier, and thirstier, the Rambler gospel was winning new converts.

COMMERCIAL VOICEOVER: Rambler is so much trimmer on the outside than other cars, it out-turns, out-parks, out-handles every other car made in America.

Only Rambler with single-unit construction gives you the room and comfort of a big car plus the economy and handling ease of a compact car.

CHAPIN: Since AMC didn't have any large cars anymore, they could pick on the competitors' large cars, and he turned it into a marketing bonanza, really.

ROMNEY: He said, you know, America doesn't need to drive gas guzzling dinosaurs.

GERALD MEYERS: He sold gas guzzling as an immoral idea.

Even though gasoline at the time was low priced!

And for George Romney to say something is immoral, sticks.

NARRATOR: During a promotional tour, engineer Les Viland managed a stellar 33.9 miles per gallon, compared to rivals that could barely get 20.

NARRATOR: Then, just as things were looking up, the U.S. plunged into a recession, taking car sales with it... ...except for the Rambler.

FOSTER: When the economy goes down, everyone wants a lower-priced car.

And all of the sudden, buyers were turning to the Rambler.

Every month, American Motors sales would be higher than the year before.

And George Romney knew then, "Ok, it's begun."

NARRATOR: Sales took off, as 1958 brought new models and refreshed styling.

NARRATOR: To create more product, AMC did the unthinkable, and put the old 1955 body back into production as the "new" Rambler American.

ROMNEY: Apparently he said it only would take selling 30,000 to breakeven, because they had all the tooling already done.

So they reintroduced it, and apparently it was a huge success.

NARRATOR: By year's end American Motors finally turned a corner, and a profit.

Sales would DOUBLE in 1959.

As thanks, a group of dealers gifted Romney a plaque reading, "To George Romney... hunter of the American dinosaur."

He was a hero in Kenosha, too.

WOJEIECHOWICZ: George Romney was a very smart man and he did a lot of good things for Kenosha, and brought a lot of jobs here.

GEORGE KAUFFMAN: We thought the world of Romney.

I tell people, Romney could get a Chevrolet man like me to buy a Rambler and like it and buy another one.

NARRATOR: A lot had changed in the decade since his phone call to Bermuda.

NARRATOR: Kaiser Willys had quit U.S. car production to focus on Jeeps.

Studebaker-Packard had ousted James Nance and killed the Packard brand, but continued to struggle.

Even AMC wasn't out of the woods.

After the Rambler's success, "The Big Three" were planning compact cars of their own.

And, Americans were buying more foreign cars than ever.

But most concerning, the miraculous turnaround had catapulted George Romney into the spotlight, attracting offers of a career change.

The road ahead for American Motors would be anything but easy.

ANNOUNCER: The Complete Book of AMC Cars features a fully-illustrated history of American Motors vehicles, and is available online at MPT.org/Shop.

Or call the phone number on the screen.

To learn more about the cars and the people of American Motors, connect with The Last Independent Automaker online.

ANNOUNCER: Funding for The Last Independent Automaker was provided in part by... [Driving rhythmic music] WOMAN: We are Detroit.

And when we move, you move.

ANNOUNCER: Funding was also provided by...

The Alfred P. Sloan Foundation... MotorCities National Heritage Area... And also...

For a complete list of funders, visit APTonline.org