U.S. Business: Rambling into the Gap

In their race with ruin, the new bosses of American Motors Corp. last week decided to rev up their smallest and—nowadays—least popular car: the compact Rambler American. "Between the small imports and the nearest U.S.-built models, no American car is reaching out to the consumer," said Roy D. Chapin Jr., who became A.M.C. chairman only four weeks ago. "The Rambler is going to be driven right into the center of this gap."

By promoting the low-priced ($2,073) Rambler—along with a separate $300,000 splash of ads plugging the company's size and zest—American was obviously...