Business: AMC Liaison

A French connection—maybe

Can putting together two weaknesses make a strength? Profit-pinched American Motors Corp. has been openly looking for a foreign carmaker with which to form some kind of partnership. Last week AMC revealed the company that it is focusing on—not, as rumored, Peugeot, but the French government-owned Renault—and the terms of a "proposed affiliation" that left a great deal for AMC stockholders to desire.

The pact is very tentative: basically, a commitment to try to work out a formal deal. If concluded, that deal would combine the two companies' selling efforts in the U.S. (American Motors cars would appear in Renault...

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