AUTOMOTIVE HISTORY – GEORGE ROMNEY – AMERICAN MOTORS CEO – BORN – JULY 8, 1907
George Wilcken Romney (July 8, 1907 – July 26, 1995) was an American businessman and Republican Party, politician. He was chairman and president of American Motors Corporation from 1954 to 1962, the 43rd Governor of Michigan from 1963 to 1969, and the United States Secretary of Housing and Urban Development from 1969 to 1973. He was the father of Mitt Romney, the former Governor of Massachusetts, 2012 Republican presidential nominee and current United States Senator from Utah, husband of 1970 U.S. Senate candidate Lenore Romney, and grandfather of current Republican National Committee chair Ronna McDaniel.
When Romney took over AMC, he canceled Mason's (the late CEO) plan to merge AMC with Studebaker-Packard Corporation (or any other automaker). He reorganized upper management, brought in younger executives, and pruned and rebuilt AMC's dealer network. Romney believed that the only way to compete with the "Big Three" (General Motors, Ford, and Chrysler) was to stake the future of AMC on a new smaller-sized car line. Together with chief engineer Meade Moore, by the end of 1957 Romney had completely phased out the Nash and Hudson brands, whose sales had been lagging. The Rambler brand was selected for development and promotion, as AMC pursued an innovative strategy: manufacturing only compact cars. The company struggled badly at first, losing money in 1956, more in 1957, and experiencing defections from its dealer network. Romney instituted company-wide savings and efficiency measures, and he and other executives reduced their salaries by up to 35 percent.
Though AMC was on the verge of being taken over by corporate raider Louis Wolfson in 1957, Romney was able to fend him off. Then sales of the Rambler finally took off, leading to unexpected financial success for AMC. It posted its first quarterly profit in three years in 1958, was the only car company to show increased sales during the recession of 1958, and moved from thirteenth to seventh place among worldwide auto manufacturers.[29] In contrast with the Hudson's NASCAR racing success in the early 1950s, the Ramblers were frequent winners in the coast-to-coast Mobil Economy Run, an annual event on U.S. highways. Sales remained strong during 1960 and 1961; the Rambler was America's third most popular car both years.
A believer in "competitive cooperative consumerism", Romney was effective in his frequent appearances before Congress. He discussed what he saw as the twin evils of "big labor" and "big business", and called on Congress to break up the Big Three. As the Big Three automakers introduced ever-larger models, AMC undertook a "gas-guzzling dinosaur fighter" strategy, and Romney became the company spokesperson in print advertisements, public appearances, and commercials on the Disneyland television program. Known for his fast-paced, short-sleeved management style that ignored organizational charts and levels of responsibility, he often wrote the ad copy himself.
Romney became what automotive writer Joe Sherman termed "a folk hero of the American auto industry" and one of the first high-profile media-savvy business executives. His focus on small cars as a challenge to AMC's domestic competitors, as well as the foreign-car invasion, was documented in the April 6, 1959, cover story of Time magazine, which concluded that "Romney has brought off singlehanded one of the most remarkable selling jobs in U.S. industry." A full biography of him was published in 1960; the company's resurgence made Romney a household name. The Associated Press named Romney its Man of the Year in Industry for four consecutive years, 1958 through 1961.
The company's stock rose from $7 per share to $90 per share, making Romney a millionaire from stock options. However, whenever he felt his salary and bonus was excessively high for a year, he gave the excess back to the company. After initial wariness, he developed a good relationship with United Automobile Workers leader Walter Reuther, and AMC workers also benefited from a then-novel profit-sharing plan. Romney was one of only a few Michigan corporate chiefs to support the passage and implementation of the state Fair Employment Practices Act. After a period of pained indecision and a 24-hour prayer fast, Romney stepped down from AMC in February 1962 to enter electoral politics.
Make it A Champion day!
Brandon Hardison