Development

AMC and its constituent companies, Nash and Hudson, had lost money in 1954 and 1955, and would continue to loose money during 1956 and 1957. When development of the 1958 models began, in early 1956, the outlook was bleak and would become more so throughout the year. On the one hand, it was imperative that the 1958 models would be very successful, or the new company would not be able to continue operating. On the other hand, the resources available required creative re-use of existing bodies and powertrains rather than anything brand new.  As it turned out, the company under the leadership of AMC President George Romney succeded brilliantly at adaptive re-use, and their 1958 line coincided with increasing buyer interest in products somewhat less flamboyant and smaller than what AMC's competitors were offering.  There were some compromises during development, but buyers did not notice. AMC earned a profit for the first time in 1958, and the  1958 cars continued to generate profits with annual updates through 1962.

The Ambassador model would be a replacement for the Nash and Hudson models, which would not be built after 1957. The Ambassador was initially intended to be sold with Nash and Hudson badges through  existing Nash and Hudson dealers, but  it soon became apparent that the consolidation of Nash and Hudson dealer networks into a single AMC Rambler network was an economic necessity.  As a replacement for Nash and Hudson, it would have to offer more to justify a higher price.  A separate body shell from that used for the standard Rambler would have been ideal, and would have added passenger room, but AMC did not have the funds to produce two separate body shells. They had to extend the Classic body shell by 9 inches forward of the cowl to accomodate the larger V8, and thus they got their larger car. They did not get a roomier car. This was an essential compromise within the development process.

The Ambassador received a 5.35 liter V8 as standard equipment , compared with the 4.1 liter V8 that was optional in the 108" Rambler. The Ambassador engine was rated at  250 hp with a two barrel carbuerator,  270 with an optional 4 barrel.  That, and a standard anti-sway stabilizer bar on the front suspension, were the only major mechanical differences between the two cars.  The increased power was just enough to offset the additional weight.  Both cars were good straight line performers, which was all that mattered at the time, and, according to contemporay evalutions, consumed slightly less fuel than their counterparts because of their lower weight. 

            The Rambler Ambassador on the market

All three 1958 Rambler lines were promoted as "compacts", and that was  a magic word in 1958. A better word would have been practical design : standard 5/6 passenger interior, less exterior size and weight.  Only the 100 " wheelbase American was truly a compact. But "compact"  worked. It worked so well, that it prompted AMC's four competitors to offer compact cars for the first time, starting in 1959 and 1960.

The Ambassador was a "luxury compact", but at  at 3500 pounds or more, it was not really compact. It was more so than the 1958 Pontiac Chieftain, Dodge Coronet, Edsel Ranger/Pacer/wagon or Mercury Monterey, which sold for about the same price but weighed about 150 - 200 pounds more. So with the Ambassador,  Rambler dealers could offer their customers a larger car than the standard Rambler with a standard V8 larger than that available in the standard Rambler and a more luxurious interior. In addition, the Ambasssador shared with the standard models a unit body, not available from any other U.S. manufacturer in 1958 - 1959 except for the expensive Lincoln and Ford Thunderbird, a more thorough rust prevention process . What they could not offer was a car with additional interior room to justify the higher price. While some of the aforementioned competitors could not do so either - the cost saving measure of stretching a smaller body shell to make a larger car without expanding the passenger compartment  was common then and is today. However, in public perception, a Pontiac was a step up from a Chevrolet, a Rambler Ambassador was still a Rambler. These two factors - lack of a separate nameplate and no additional interior room at a higher price- probably limited marketplace acceptance .

           Rambler Ambassador production, 1958 - 1961

Sources for this article

Series 5800 summary of U.S. production - automobiles. AMC internal memo              

Series 5900 summary of U.S. production - automobiles. AMC internal memo   

Rambler sales catalogs, 1958 - 1961.

AMCRC Rambler Club. 1958 - 1969 Rambler production handbook   

Auto Editors of Consumer Guide. Encyclopedia of American cars. Publications International 2006.