Re: Romney's selective memory

Posted by Steve203 On 2015/8/23 22:00:19

The eventual outcome for AMC should have been satisfaction enough for Romney, leading the remnants of two medium-priced makers onto major successes in an emergent segment which theretofore was certain failure for all who tried. Subsequent AMC troubles were after his tenure; he left them with solid finances and an updated product line which if simply built upon could have lead to further successes.

Romney's stewardship of AMC has it's critics. I remember reading an article in Fortune in the late 60s, which noted that Romney paid out their early 60s profits in dividends, instead of investing in efficient plant and equipment, just as Studebaker had paid out war profits in dividends when Harold Vance was begging for facilities improvements. In the 70s they were still shipping bodies from Milwaukee, instead of investing Rambler profits in an integrated body and assembly plant on the outskirts of Kenosha, or building a new powertrain plant to clear enough of the existing plant's footprint to put in a body plant.