Renault Alliance - Legacy

Legacy

The 1983 Motor Trend Car of the Year award for the Renault Alliance was an industry-wide recognition that contributed to increased sales, as well as to AMC's profits of about $15 million in 1984. (US$33,555,413 in 2012 dollars)

The Alliance afforded AMC the opportunity to field a new compact car without the expense of its design and tooling, still the business relationship with Renault exacted a heavy price on the U.S. company. The automaker was required to shed its profitable AM General line of commercial and military vehicles because of U.S. Government regulations prohibiting foreign companies from owning domestic military suppliers.

The initial positive reception and the "impressive" sales total of 200,000 Alliances by 1984 was later hindered by the market offer of only two models while the competition was offering with a wider range of cars for the market segments. Renault failed to fully accommodate the European cars to U.S. market demands. These included the car's less powerful engine whose output limited by the more demanding U.S. emission requirements, as well as the popularity of air conditioning that was still a rare option in Europe. The exchange rate of the U.S. dollar also became "very problematic in the mid-1980s" due to the inflation and declining economy in the U.S., compared to French currency. Renault also did not consider the costs of manufacturing at AMC and failed to "properly support its distribution network" since U.S. dealerships were seldom brand exclusive. The mistakes in controlling "the quality delivered by the distribution network" resulted in "disastrous " consequences for the image of the automobiles, as well as increasing warranty costs.

Alliance production at the Kenosha plant ended in June 1987, shortly after Chrysler's buyout of AMC was announced. The damaged reputation of the Alliance would also affect attempts to launch other Renault cars, including the brief appearance of the Renault Medallion, and Eagle Premier (the latter which would be the basis for the successful Chrysler LH platform-based automobiles).