A better way

"I've thought of a better way."

Those words of Lord Kelvin, the famous British physicist, are carved in stone above the entrance to the Detroit headquarters of American Motors Corp. American was certain that it had thought of a better way when it led the massive consumer shift to compact, economy cars in the late 1950s. It is less certain today. For the past two years, affluent consumers have been moving up to larger, more luxurious cars, and American's sales and profits have been steadily declining. Last week, after Detroit's Big Three had all reported record earnings in the first quarter of 1965, President Roy Abernethy announced that his company's sales had dropped 8% and its profits 77% below their 1964 levels. American is now looking for a better way.

New Femme Fatale. That way, Abernethy is convinced, is to change the company's image. American has set out to strip the Rambler of the stodgy, maiden-aunt, economy image nurtured during George Romney's reign, and to surround it with the sporty accouterments and glamour that sell autos. Restyled Ramblers have already lost their boxy lines and blossomed forth in hard-tops and convertibles, with bucket seats, floor-mounted gearshifts and even a big, 8-cylinder engine that is definitely not economical. The fastback Marlin, introduced last March, is as sporty a car as Detroit manufactures today; it was rushed onto the showroom floors to give the public the message that American can be a swinging outfit.

To telegraph that message, the company's advertising has gradually changed to the brighter side. The ads now identify Ramblers as the "Sensible Spectaculars," and have introduced a number of quite spectacular girls; one ad features a femme fatale who exults upon seeing a Marlin: "Rambler, I didn't think you were THAT kind of car." These changes to the warmer side, however, were accompanied by a growing coolness between American and the ad agency that has held the Rambler account for 28 years: Geyer, Morey, Ballard. This fall the $15 million account will go to Benton & Bowles (1964 billings: $137 million).

Liked by Foreigners. One of the major problems facing Abernethy--whose biggest car, the Ambassador, is actually shorter than many intermediates--has been the decline of the compact market. This trend has cut Rambler sales by 14%, Valiant sales by 29% and Chevy II and Falcon sales each by 39% below their 1964 levels. In an attempt to counteract the slump, American will add luxury features to the 1966 Classic and Ambassador, avoid advertising them as compacts. The 1966 compact American will be given a sporty, sloping rear deck, and emphasized as American's sole compact.

These new features will also be added attractions for foreigners, who seem to like the Rambler. Foreign sales of Ramblers rose to a record 37,580 units during the first six months of the fiscal year. Anxious to tap the other side of that market, Abernethy hopes that the restyled cars will be equally attractive to U.S. customers who have been buying imports, plans to pit the compact American directly against small, imported cars in 1965.

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