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...Chapin's corporate philosophy is that "there is always a place for someone who can do things a little bit differently." In developing AMC's compact Hornet in 1969, being a little different meant designing a car that would also serve as the basis for the company's entry in the subcompact sweepstakes. Instead of designing a whole new subcompact, as GM did with its Vega and Ford with the Pinto, American Motors spent a remarkably low $5,000,000 and simply cut down the Hornet. As a result, the company produces the only subcompact with...

Author: /time Magazine | Title: AUTOS: The Mouse That Varoomed | 11/20/1972 | See Source »

...very healthy showing. But American Motors is doing more than merely riding a high tide. In the '72 model year, AMC's share of the market inched ahead from 3.2% to 3.4%, largely because of the popularity of its smaller cars. Moreover, vows AMC Chairman Roy D. Chapin Jr., 57, the Yale-educated auto man who has been the company's front-seat driver for five years, "We're not satisfied with that." As if to underscore his determination, AMC this week announced that it will reopen fairly soon a plant in Kenosha, Wis., that...

Author: /time Magazine | Title: AUTOS: The Mouse That Varoomed | 11/20/1972 | See Source »

Profitable Jeeps. Chapin and a small group of aides have almost totally reshaped AMC. They sold its financing and Kelvinator subsidiaries, neither of which showed promise of earning enough to justify the amount of capital tied up in it. Then Chapin bought the famous Jeep line from Kaiser Industries for $70 million. Jeep had been a money loser for Kaiser, but AMC made it profitable, steering it into the recreational-vehicle market, which Chapin figures has doubled in the past three years. New versions of the original four-wheel drive machine soon began appearing as pickups, campers and station wagons...

Author: /time Magazine | Title: AUTOS: The Mouse That Varoomed | 11/20/1972 | See Source »

...Another Chapin innovation was the "Buyer Protection Plan," which gives AMC owners a warranty covering every car part except tires. The company will fix any faulty part for free during the first year, and on '73 models offers a second year's coverage for $150. Both GM and Ford emulate that plan on their '73 cars, though neither offers protection that goes so far as AMC's. The AMC warranty won the praise of industry watchers as divergent as Presidential Consumer Adviser Virginia Knauer and Mac Gordon, outspoken editor of the dealer newsletter Motor News Analysis...

Author: /time Magazine | Title: AUTOS: The Mouse That Varoomed | 11/20/1972 | See Source »

However, Justice Department officials say that Chapin admitted to FBI agents that he had hired Segretti to disrupt the Democratic campaigns. Chapin had also told the FBI that Segretti's payment was set by Nixon's personal attorney, California Lawyer Herbert Kalmbach. Justice Department sources say that Kalmbach, too, admitted to FBI agents that the money he paid Segretti came from cash kept by C.R.P. in the office of its finance chairman Maurice H. Stans...

Author: /time Magazine | Title: INVESTIGATIONS: How High? | 11/6/1972 | See Source »

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