The Renault Alliance is a subcompact manufactured and marketed in North America by American Motors Corporation (AMC) for model years 1983–1987. Originally available in two- and four-door sedan configurations, with a convertible variant introduced for model year 1985; three three and five-door hatchback variants introduced for model year 1984 as the Renault Encore; and a sportier variant, the Renault GTA, introduced for model year 1987. Production reached 623,573 vehicles, all manufactured in Kenosha, Wisconsin, before production eneded and AMC was acquired by Chrysler in 1987.
The Alliance and Encore derived from AMC's partnership since 1979 with Renault, which at the time held controlling stake in the smallest U.S. automaker. The Alliance and Encore derived closely from the Renault 9 & 11, re-engineered for the U.S. and Canadian markets. Robert Opron, director of Renault Styling, designed the exterior, and AMC's Richard Teague executed the interior design as well as the two-door sedan and the convertible exteriors, both unique models developed by AMC.
History Competition from the "Big Three," the rise of Asian import automobiles, new safety regulations, the 1973 oil crisis, and 1979 energy crisis left American Motors in a weak position in the U.S. marketplace. The company had three product lines: a profitable line of government vehicles, Jeeps, and passenger cars. However, sales dropped suddenly in 1979 with a declining economy meaning all four of the U.S. automakers saw their sales plummet, but this decline was dangerous to AMC's survival with only 2% share of the U.S. passenger car market.
Banks refused to provide AMC further credit to develop new products for the changing marketplace, so AMC turned to Renault for a $90 million loan. As the U.S. economy entered the early 1980s recession, AMC signed an agreement with Renault giving a share in AMC's ownership in exchange for the rights to sell Renault cars in the U.S. During the time when Chrysler received US$1.5 billion in loan guarantees when Congress passed the "Chrysler Corporation Loan Guarantee Act of 1979",Chrysler Corporation Loan Guarantee Act of 1979 Public Law 96-185, 96th Congress, 7 January 1980. AMC was not considered by lawmakers to be "too big to fail" and thus the smallest U.S. automaker sought assistance from the French government-owned company. By the end of 1980, Renault held a controlling interest of AMC. Some called it "Franco-American Motors," a pun on the French-American combination and the Franco-American food company.
With the United States dollar then relatively weak against the French franc, manufacturing in the U.S. seemed the best way to grow especially since fuel prices were rising and the major U.S. carmakers had yet to bring out large numbers of small, fuel-efficient cars. Renault's objective was to build its newer models at AMC's existing manufacturing plants, thus avoiding the problems Volkswagen encountered with its "Rabbit" version of the Mk1 Golf assembled in its new factory in Westmoreland, Pennsylvania.
The two automakers worked closely as each design studio developed spin-offs of cars created by the other. Richard Teague, AMC's Vice President of Design, and his French counterpart, Robert Opron, director of Renault Styling, each traveled between France and the U.S. at least three times a year. Originally only a four-door sedan body style, Teague and AMC's design staff decided to mock-up a two-door coupe just before Opron was to review the work of the American team.
Renault executives came in to run things alongside AMC officials, and the veritable factory in Kenosha, Wisconsin was retooled to produce an Americanized version of the European Renault 9 subcompact under the "Alliance" nameplate. Consumer clinics were conducted between 1979 and 1982 using a fiberglass mockup (and later with actual cars) to evaluate various issues that concerned AMC officials. Market research indicated that consumers preferred the Renault name over AMC, though not strongly. The model was named the Renault Alliance, with the AMC logo only on a small sticker affixed on the inside of the rear window, as well as printed at the bottom or back of the advertising materials.
Production began in 1982, making Renault the second European automaker to build cars in the U.S. The cars were aimed at the lowest price range in the U.S. market, the two-door Alliance had a sticker price starting at $5,595. The European Car of the Year for 1982 was described as "the bargain of the year in the U.S." for 1983.
Model years
For context of the era, the Alliance was launched into the U.S. subcompact market segment that included the Chevrolet Chevette, a basic and dated rear-wheel drive car; the Toyota Corolla E70 with a good reputation, but also still featuring an outdated design and rear-drive layout, the Volkswagen "Rabbit", the first-generation replacement for the original Beetle; the four-year old Chrysler twins Dodge Omni and Plymouth Horizon that were less fuel efficient; the simple Honda Civic (second generation) with a high rating and a matching high price; and none of them could come anywhere close to the high level of Alliance's passenger comfort.
1983 The Alliance was a 2- or 4-door sedan, launched in June 1982 as a 1983 model after a US$150 million overhaul of AMC's Kenosha, Wisconsin, assembly plant. Although it was branded as a Renault, the car bore AMC's logo on a rear window decal and was officially classified as a domestic automobile because it had more than 70% U.S.-produced parts.
The Alliance was a modern front-drive sedan with a overall length on a wheelbase featuring a thrifty, transverse four-cylinder engine. The Alliance had a long list of standard equipment and achieved in city driving. Fuel economy on the highway with the 5-speed manual transmission approached . It was a sensible car for a post-oil crisis period in which good fuel economy was highly prized.
The Alliance used a Renault supplied OHV 1.4 L I4 engine from the Renault Le Car. Cars sold in 49-states came with a Renix throttle-body fuel injection, while California emissions standards required the use of multi port injection. This four-cylinder was upgraded with the latest electronics that included an electronically controlled fuel system, a digital ignition system, and a microprocessor to manage the optional three-speed automatic transmission. Although Renault transmissions have been equipped with Renix based electronics and sensor assemblies, the all-new electronic controlled transmission system in the Alliance was an innovation to the U.S. mass-market.
Power went through either a four-or five-speed manual, or a three-speed automatic transaxle. The base engine produced to accelerate the Alliance from 0 to 60 mph in 14.3 seconds, and gave it an top speed. Steering was rack and pinion. The suspension system was fully independent via MacPherson struts in front, while the rear had a compact and ingenious system of transverse torsion bars and trailing arms. At just under for the base model, the Alliance was also the lightest car assembled in the U.S. in its time.
The Alliance was slightly smaller on the outside than the competing first-generation Ford Escort (North America), but it was somewhat bigger on the inside where it looked larger and more inviting. Interior space was good for four or occasionally five people, in part due to a cleverly engineered front seats—where each seat was mounted on a wide central rail (rather than two side tracks) allowing for copious rear foot room on either side of the rail. In addition to the usual recline and fore-and-aft movements, the upscale DL models included a curved track that allowed the seat to be adjusted along the arc to find the most comfortable position for driver and passenger.
The Alliance sold well with over 142,000 of the debut 1983 models. Sales were limited by the availability of only two body styles. American Motors' had several 4-door Alliances converted into stretch limousines for publicity and official use.
1984 American Motors introduced a companion model called Encore featuring a hatchback in both two- and four-door versions. The new derivatives featured a redesigned rear end and were shorter than the Alliance sedans. "More versatile and a little more luxurious than the Alliance," the marketing objective of the Encore was to attract younger and more "upscale" customers, but they were really the same cars. California engines featured a Bosch LU multi-point fuel-injection system. The 1984 models introduced innovative electronics that included an infrared remote power locking system, a "Systems Sentry" monitoring fluid levels, as well electronically tuned sound systems.
Bolstered by the additional two- and four-door hatchback models, sales increased to over 208,000 for 1984. While the financial fortunes of its French partner faltered, AMC recorded $7.4 million profit in fourth quarter of 1983, which a contrast to the previous 14 consecutive quarters of losses. According to Jose Dedeurwaerder, a Renault executive who became AMC's president, 1984 was profitable for AMC on an annual basis for the first time since 1979 during which the automaker lost $637.6 million.
However, the new Encores were introduced just in time to encounter a sag in the small-car market because as fuel prices fell, consumers began to drift away to larger automobiles, leaving the Renault-based models to scramble against low-priced Chevrolet Chevettes, Ford Escorts, the Dodge Omni and Plymouth Horizon twins, as well as a slew of Japanese imports.
1985 The 1.7 L fuel injection (EFI) engine with 5-speed transmission was introduced in 1985 as optional on all versions except the base model. It developed of torque at 3000 rpm and at 5000 rpm. Designed to be either gasoline of diesel, the new five main bearing engine was torture tested to higher levels than normal to be "the strongest Four in the industry." The fully pressurized cooling system eliminated corrosive oxygen while engineers reduced the number of connections to avoid coolant leaks for both the 1.7 and 1.4 engines.
In addition to the sedan, the Alliance was now offered as a convertible for 1985 (AMC's first of this body type since the 1968 Rebel). The design was in collaboration with American Sunroof Company (now American Specialty Cars) that reinforced the Alliance's unibody for torsional rigidity during manufacture in Kenosha, Wisconsin.
Potential buyers were asking at AMC/Jeep/Renault dealerships for an Alliance-based station wagon, who pointed them toward the larger Renault 18 Sportwagon.
By 1985, the U.S. automobile market was starting to move away from the subcompact Alliance and Encore as the gasoline crisis ended and consumers were buying larger cars. Increasing competition in the subcompact market segment from imported vehicles meant that total Alliance and Encore sales fell to 150,000 for 1985.
1986 For 1986, the Alliance and its variants received a revised instrument panel with a prominent horizontal brow extending across the center console and stack -- as well as slightly revised headlights and front fascia; revised Renix fuel injection system for the 1.4L engine, and minor trim revisions.
Improving economic conditions and lower gasoline prices meant total sales dropped to 65,000 in 1986. American Motors had already stopped production of the Concord and Spirit in 1983 (the four-wheel drive AMC Eagle continued to be built), while the larger Medallion (to replace the Renault 18) was not going to be ready until 1987. The automaker offered zero-interest financing on the Alliance and Encore models in the fall of 1986. By mid-December 1986, around 2,000 hourly employees at its Kenosha factory were put on temporary layoff through the first week of January to balance inventory with sales of the Alliance.
1987