Would American Motors under George Mason have done more poorly in the late-50s?

1955 Nash

(EXPANDED FROM 4/9/2024)

A few years ago Indie Auto commentator Kim in Lanark made the useful point that if American Motors had “kept the Nash and Hudson nameplates any longer, the AMC executives could drive their 1959 Nashes and Hudsons to bankruptcy court.”

As a friendly amendment, I would suggest that American Motors might not have collapsed — even Studebaker-Packard managed to make it into the 1960s. However, AMC could have done much worse without CEO George Romney’s decision to ditch big Nashes and Hudsons in favor of a single-minded focus on compact Ramblers.

This raises an awkward question: Why do automotive historians — both professional and armchair — tend to oversell the capabilities of Romney’s predecessor, George Mason?

1951 Nash Ambassador
Nash’s best year under Mason was 1951, when production hit an all-time high of approximately 205,000 units. That was well below Romney’s top year of 1960, when Rambler output almost reached 459,000 units (Old Car Brochures).

Mason has benefitted from ‘bigger = better’ mentality

Automotive historians tend to lionize Mason. For example, Richard Langworth called him “a visionary among his peers” (2021, p. 49) and Stuart R. Blond described him as “far-sighted” (2021, p. 42).

Perhaps this partly reflects the extra regard given to people who die prematurely. Mason, who was CEO of Nash-Kelvinator, unexpectedly succumbed to pneumonia in 1954 after he spearheaded the creation of American Motors by absorbing Hudson.

Another reason Mason has been given high marks is for embracing the popular management philosophy of “get big or get out.” As far back as 1946 he called for the major independents to band together in a grand merger (Foster, 1993).

Less often mentioned is that Mason had a pretty unrealistic ambition — to create a full-line automaker that was โ€œbigger than Chrysler Corporationโ€ (Hamlin and Heinmuller, 2002; p. 557). The plausibility of that goal has not been seriously questioned even though the combined passenger-car output of all postwar independents never came close to matching Chryslerโ€™s.

1961 Chrysler New Yorker front quarter
The premium-price field contracted to such a degree that Chrysler Corporation’s output fell from almost 545,000 units in 1955 to under 114,000 units in 1961. How could even the strongest independent automaker have done much better?

Nance partisans have assigned Mason a savior role

Mason’s reputation has also received a boost from those historians who have been champions of James Nance. They have apparently accepted at face value Nance’s highly questionable contention that he only became head of Packard after Mason agreed to a four-way merger. The first step was supposedly for Nash to merge with Hudson while Packard tied up with Studebaker. Mason died before the mega-merger could be consummated and Romney supposedly opposed it (Bonsall, 2000; Langworth, 2021; Blond, 2021; Hamlin and Heinmuller, 2002).

Perhaps I’ve missed it, but I have not seen any of the historians who have espoused variations on this narrative respond to Patrick Foster’s point-by-point rebuttal — which strikes me as more convincing (go here for further discussion).

If I may get up on my soap box for a moment, here we have a choice example of how American automotive history does not have effective venues for hashing out key debates that could advance the field. Folks are apparently more interested in polishing their collectible car.

Be that as it may, let’s get nerdy about auto history for a moment. I would suggest that Mason’s stature among historians appears to have been enhanced at least in some quarters because he has been viewed as the man who would have “saved” Packard if he had lived longer — which is a highly debatable proposition.

1948-57 production of top-four independents

Mason did handle compacts better than competition

I have been hard on Mason, so to be fair I should add that he navigated the first half of the 1950s better than any other leader of an independent automaker. Although Nash was initially eclipsed by Studebaker, by 1954 it was the best-selling brand primarily on the strength of the compact Rambler.

Mason is frequently lauded for introducing the Rambler as a fairly expensive personal coupe of sorts rather than an economy compact akin to the ill-fated Henry J. Nash’s strategy may have made sense initially, but we should also note that Rambler sales didn’t begin to take off until 1954-55.

This was when the Rambler lineup was expanded to include entry-level models that undercut the Big Three in price for the first time. In addition, the Rambler also received a longer-wheelbase, four-door sedan and wagon that better fit six passengers. This resulted in output topping 80,000 units in 1955, which was higher than the big Nash and Hudson combined.

Mason deserves credit for more adroitly navigating the compact market than any of the other independents, but his basic strategy could have backfired if he had continued to lead American Motors through the end of the decade.

1954 Nash Rambler lineup
Even when Nash moved its compact lineup downmarket in 1954 — including price cuts for high-end models — theย  Rambler was still marketed as “the world’s most luxurious compact cars.” Click on image to enlarge (Old Car Brochures).

Mason saw compacts as a supplement to big cars

Whereas Romney believed that the automaker should focus exclusively on compacts, Mason saw the Rambler as auxiliary to its big-car lineup (Lehman, 2011b). So if Mason had lived, he likely would have invested in a major redesign of big cars in 1956 or 1957. Given how tight money was, the Rambler would likely have received relatively minor updates rather than the all-new body that Romney had championed.

Foster (1993) shows a photograph of a proposed Nash redesign by Pinin Farina that would have been substantially lower than the body that debuted in 1952. It doesn’t strike me as being a real winner, but even if it had been the redesigned big-car body could have had trouble generating a profit. This is because the premium-priced field collapsed in spectacular fashion from 1956-59. Much like struggling Packard, AMC didn’t have much room for error because in 1955 it produced only around 60,000 big cars.

American Motors reportedly came close to insolvency under Romney during 1956-57 (Foster, 2017). Thus, it is entirely possible that spending scarce capital on a big-car redesign that didn’t sell well could have been the final nail in AMC’s coffin.

A more optimistic scenario is that the Rambler managed to sell well enough that it pulled the company through the second half of the 1950s.

1956 Nash
Romney moved the Rambler’s redesign up one year to 1956 because of AMC’s deteriorating competitiveness. Mason could have been under greater pressure to do so with a big-car redesign because of even worse sales (Old Car Brochures).

Nash’s quirky styling undercut merger potential

Mason apparently assumed that Nash would be more successful if its styling stood out from the competition. In theory that made sense, but in practice it would prove to be a key weakness — particularly by mid-decade.

Part of the problem was that Mason’s stylistic tastes were rather quirky. Enclosed front wheels, inboard headlights and the pontoon body curvature of the “Airflyte” Nashes may have initially looked advanced, but they didn’t age all that well. Indeed, by 1955 the big Nash didn’t look futuristic so much as it came off as weird . . . and those enclosed front wheels hardly helped the car’s turning radius.

Even more importantly, Nash bodies were so distinctive that they did not lend themselves to being used as a basis for a multi-brand lineup. That would prove to be a particular problem with the Hudson tie up. Even though the 1955-57 Hudson had significantly different sheet metal than the Nash, it was still quite rightly dubbed a “Hash.” Imagine what a Packard would have looked like if it had been based on the Nash body.

This raises an important question that I haven’t seen discussed elsewhere: If Mason was an early proponent of a grand merger with Nash as its center of gravity, why didn’t he invest in basic bodies whose styling was flexible enough to be used by multiple brands? After all, Mason had five bites of the apple: The redesign of the big Nash in 1949 and 1952 as well as the introduction of the Rambler in 1950, the Nash-Healey in 1951 and the Metropolitan in 1954.

Metropolitan
The Metropolitan gave American Motors an indirect competitor to imported small cars, but its lack of a back seat and meager updates limited the car’s appeal as the sales of other imports soared in the late-50s and early-60s.

Mason spread Nash too thin with niche products

This brings us to another Mason weakness — he had a scattershot approach to product development. During the first half of the 1950s he engaged in more product proliferation than any other automaker of that era. While that gave Nash showrooms more variety, only the compact Rambler was very successful.

Nash’s other new cars — the Nash-Healey sports car and subcompact Metropolitan — arguably made it harder to achieve adequate economies of scale. This is because they diverted marketing resources away from core products and were not built in Nash’s Kenosha plant, so generated a lower profit.

One final weakness was that Mason appears to have assumed that maintaining a multi-brand lineup was a viable option for American Motors. That might have been the case if a merger had occurred early enough after World War II that each brand had the resources to carve out a decent niche. However, by 1954 there simply wasn’t enough money to provide adequate differentiation.

One could give Mason credit for proposing in 1948 a merger of Nash and Packard (Blond, 2021). That might have worked relatively well for Packard for a while but it would have made it harder for the merged company to pivot to compact cars in the second half of the 1950s. So Mason arguably dodged a bullet when the Packard board turned down his proposal.

1950 Packard
If Packard had agreed to merge with Nash in 1948, the brand would likely have switched to unitized construction. In addition, final assembly would have eventually needed to move to Nash’s Kenosha plant (Old Car Brochures).

Mason might have had one advantage over Romney

Mason might have had one advantage — albeit inadvertent — over Romney in leading American Motors. When Romney had the Rambler redesigned in 1956 he decided to make it bigger and more expensive. That may have made the car more competitive with the Big Three, but it also abandoned the bottom end of the market. This was arguably a problem in 1956-57 because an increasing number of buyers were shifting to imports.

Romney recounted that there was only enough money to redesign one platform, so he bet on the Rambler (Foster, 2017). If Mason had instead bet on big cars he presumably could have made only modest changes to the Rambler. And as the car’s design aged it would have made sense for Mason to have increasingly emphasized a low price.

One result is that Mason’s Rambler might have sold better in the crucial years of 1956-57 because it more substantially undercut the Big Three in prices. That could have single-handedly saved his bacon if AMC’s big Nash and Hudson declined in synch with the rest of the premium-priced field.

Another potential advantage that Mason might have had is that he could have been more inclined to continue a parts-sharing agreement with Studebaker-Packard (if a grand merger had not been consummated). One reason Romney had a cash-flow crunch in 1956-57 was the high cost of ditching the agreement and coming out with AMC’s own V8 engine.

Romney belatedly realized that he had made a mistake abandoning the bottom of the market in 1956, when the Rambler was upsized. In 1958 he brought back short-wheelbase models and called them the American (Old Car Brochures).

Two-brand focus on big cars was less sustainable

Even under the more optimistic scenario discussed above, Mason would likely have been in a weaker position than Romney by the end of the 1950s. For one thing, it’s hard to see how a two-brand strategy was sustainable. At some point Mason would have likely needed to ditch the Nash and Hudson in favor of the Rambler unless he engaged in increasingly blatant badge engineering.

In addition, it was pretty much inevitable that Mason would have needed to abandon the big-car field. The longer he waited, the less likely American Motors could have carved out such a strong niche in the compact market.

As a case in point, the Rambler would have desperately needed a major redesign by the time that the Big Three’s first wave of compacts came out in 1960. Would Mason have been smart enough to ditch the big cars and invest in a redesigned Rambler?

We should acknowledge that Mason was getting up there in age: He died in October 1954 at the age of 63. However, even if he had retired only two years later at age 65, he still would have been responsible for key decisions such whether to redesign the big-car body or the Rambler in 1956 or 1957.

1951 Nash Rambler
The 1951 Nash Rambler convertible was priced at $1,993, which was only slightly less expensive than a high-end Chevrolet convertible. Yet sales were quite good — and those of a two-door hardtop and wagon were even better.

Mason was good — but not as good as Romney

The point of this essay isn’t to dismiss Mason. As I said, he strikes me as the most effective leader of an independent automaker in the first half of the 1950s.

Romney quite rightly lauded Mason as a โ€œreal genius in this industry who has never been adequately recognized for what he didโ€ (Lehman, 2011a). After World War II Mason predicted a growing need for smaller cars โ€” and engaged in broad experimentation with four- and even three-wheeled concepts.

As the 1950s wore on, Mason had the right general direction but Romney mostly did a better job of implementation. A key reason why was that Romney had a much keener understanding of economies of scale. During his tenure as head of American Motors, he championed an exceptionally lean lineup. I wonder whether Romney’s approach was partly a reaction to Mason’s dilettantism.

One of the most important marks of a great executive is the ability to recruit top talent. Could it be that Mason’s single greatest accomplishment was recruiting Romney, who had the ability to take his basic approach to the next level?

NOTES:

This story was originally posted on April 9, 2024 and expanded on Oct. 23, 2026. Production figures and product specifications are from the auto editors of Consumer Guide (2006), Gunnell (2002) and Wikipedia (2022).

Share your reactions to this post with a comment below or a note to the editor.


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DECG50
DECG50
2 years ago

To me the question is who would have positioned the company better to compete against the Big 3 once they turned to making smaller cars. My knock on Romney is that his ascetic approach resulted in Rambler acquiring a negative brand image by the mid ’60s. Ramblers were cars for nerds and maiden aunts. On that score, I think Mason would have done better. He better recognized that pride of ownership is an important factor in consumer choice.

Scampman
Scampman
1 day ago
Reply to  Steve

Pat Foster is the living custodian of George Mason’s memory thru Pat’s personal friendship and professional collaboration with George Romney. Pat says that Romney was hired and trained by Mason to be Mason’s successor, as Charlie Nash had hired Mason (and purchased Kelvinator Corporation). Pat probably isn’t repeating tribal knowledge. Pat probably is passing on what he learned from Romney, who would have been Mason’s successor. Whatever their respective titles at the time or in the future, it seems that Romney generally was satisfied with Mason and the succession of authority at the time of Mason’s death.

James E. (Jed) Duvall
James E. (Jed) Duvall
2 years ago

While I think George Mason was a visionary, his time was 1940 to the date of his death in 1954. G.M., Ford and Chrysler had set the pecking order with their 1955 models, which were previewed in the 1953-1955 G.M. Motoramas. From the time of Mason’s death, until 1964, Romney had to deal with A.M.C.’s existing platforms until the fall, 1962 debut of the Rambler Classic / Ambassador because of limited resources. The bets on the 287 / 327 V-8 and the 1956 Rambler platform were the right investments that saved A.M.C. and gave them the money to incrementally invest in the revival of the Rambler American and the ability to create the modern, lighter 232 / 258-cu.-in. sixes as well as replace the 1956 Rambler platform / body shell(s). Think about this: Romney and his team did for A.M.C. what Studebaker-Packard could not do after 1953…produce TWO new sets of bodies (on a unit-body, no less) while creating a unique position for the cars and station wagons that turned a profit. George Mason might have spent more money on sheet metal than Romney had Mason lived, but would Mason have sold more cars between 1955 and 1964 than Romney did at A.M.C.?

This poses a fascinating question about the focus of Studebaker-Packard management in 1955-1956, aside from trying to obtain loans from their bankers (denied) and figuring out what to do under Curtiss-Wright’s oversight in 1956: How focused was Studebaker-Packard on producing a market-competitive Studebaker and a limited-market upscale Packard to save the company ? I would suggest that James J. Nance had more resources under his control in 1955 than Romney had, but that Romney was much more resourceful, doing more with less. In 1955-1956, Studebaker and Packard had more and better dealers than Nash and Hudson, at least in urban centers like Indianapolis, IN. A.M.C. did not have up-to-date dealerships in Indiana, at least until 1959-1960, while after 1956, Studebaker dealers began their decline.

Scampman
Scampman
1 day ago

IMO, Romney’s magic was finding an unserved part of the market.

From 1955 to the 80s, GM and Ford kept coming back to the 1955 Ford and Chevy packages as the sweet spot for a good family car. Romney stayed there, especially with the new 1963 car. As long as he had it to himself, Rambler could keep a factory humming. Ford and GM kept returning to that size and diluting Rambler prime market. In particular, GM bracketed Ford with the A bodies and the Nova, then fired for effect. AMC was a hapless, helpless battle casualty.

The sweet spot for a good family car moved with the GM X cars, tho the actual X cars weren’t the beneficiaries of the insight.

In the early 60s, Rambler had about 3k of maybe 30k new car dealers. Ford and Chevy were about half of 30k. If Ford or Chevy sell a sorta Rambler, it would have to reach X car (or Renault Alliance) levels of infamy to be outsold by the actual Rambler.