For the longest time, nobody in Detroit took Volkswagen seriously, and who could blame them? The Beetle was an anachronism, no matter how much steady but glacier-like evolution it underwent, no matter how conscientious its assembly or clever its ads. By the end of the 1960s, however, it was selling more than half a million copies a year in the U.S. In the February 1969 issue of Motor Trend, editor Eric Dahlquist laid it out, explaining that the Volkswagen was frequently the best-selling car in Los Angeles, one of the nation's (and the world's) largest automotive markets.

This was bad news for all of the U.S. automakers, but it was particularly threatening for American Motors Corporation. AMC had made its mark in the late 1950s and early 1960s as a purveyor of economy cars, alternatives to what George Romney called "Detroit dinosaurs," but by the late sixties, its compact Rambler American was moribund, stigmatized as a car for little old ladies. AMC's total sales for 1968 were 272,696, climbing a bit to 281,297 for 1969; Volkswagen's sales for the same model years were 582,009 and 548,904, respectively. The Volkswagen was certainly problematic for Chevy and Ford, but for AMC, it was a deadly threat. Beyond that, Toyota and Datsun were beginning to emerge as real contenders. Something had to be done.

AMC was already preparing a new compact, the Hornet, to replace the aging Rambler American for 1970. American management realized, however, that, like the contemporary Ford Maverick, the Hornet was basically a new bottle for the same wine. Despite new styling, a longer wheelbase, and the revival of the storied Hornet name (which had been dropped when AMC abandoned the Hudson nameplate in 1957), the new car was not that different from the Rambler American underneath. To compete with the imports, AMC needed something different, something smaller: a genuine subcompact to take on the Beetle and its foreign brethren.


Even the shape of the rear sheet metal suggests that the Gremlin is a hatchback, but it's not -- only the rear window lifts up for loading cargo. (On some early base cars, even that was fixed in place.)

The ever-resourceful Dick Teague, AMC styling VP, was already working on it. Back in 1966, Teague and stylist Bob Nixon had discussed the possibility of a shortened version of the Hornet, which was then in development. Its engineering would also be reminiscent of the production AMX: just as the AMX was a cut-down Javelin, the new subcompact would be a cut-down version of the Hornet. Nixon created a series of sketches along those lines, which Teague liked.

On an airline flight that fall, Teague presented the idea to Gerry Meyers, AMC's VP of product development. Lacking any of Nixon's design studies, Teague sketched the design on the only thing he had at hand -- the back of an air-sickness bag. Meyers liked the idea, in large part because its tooling costs would be very low.

AMC showed a concept version of the new design at the New York auto show in April 1968 under the name AMX-GT. The AMX-GT was a trial balloon, and AMC did not suggest any plans to build it. Nonetheless, public response was generally favorable, and plans for the production model went forward. Perhaps mindful of Chrysler's success with the Plymouth Road Runner, AMC settled on a cute name for its subcompact, with a cute, cartoon mascot to go with it: Gremlin.


Charlie's '75 Gremlin X, known as "Cool Factor X," shows off a stylized version of the AMC Gremlin mascot. (Photo © 2006 Gremmie; used by permission)

Structurally, the Gremlin was a Hornet shorn of 12 inches (305 mm) of wheelbase, trimming its overall length by 18 inches (457 mm). At 161.3 inches (4,097 mm), the Gremlin was only 3 inches (76 mm) longer than a Beetle, although it looked significantly bigger. It was only fractionally narrower than the Hornet, although it was around 200 pounds (90 kg) lighter. The similarity allowed a great deal of commonality; the Gremlin shared its big brother's front suspension, steering, brakes, although the rear leaf springs were shortened, most of the rear legroom was extracted, a fold-down rear seat was added to increase its cargo space.

Despite the commonality, the Gremlin was not just a cut-down Hornet, although in 1970, Teague told Motor Trend's Eric Dahlquist that they'd built a prototype of just such a car, which would've been dubbed the Wasp. Instead, the Gremlin had a distinctive wedge shape, ending in a sharp "Kammback" tail (an aerodynamic technique named for the German aerodynamicist Wunibald Kamm, who had outlined it back in the 1930s). The Kamm tail was theoretically a drag-reducing measure, but we assume that Teague and Nixon chose it mostly to give a stylistic rationale to the truncated shape.


A battered 1970½ Gremlin. First-year Gremlins were 161.3 inches (4,097 mm) long and weighed about 2,640 lb (1,200 kg). Compare the slimmer bumper with the bulky post-1973 5 mph (8 km/h) bumper on Charlie's Gremlin X, below. (Photo © 2007 Karmann; used under a Creative Commons Attribution ShareAlike 3.0 license)

Although the Gremlin looked like a hatchback, a design becoming popular in Europe for small cars, it had no tailgate, although a flip-up rear window was optional, allowing cargo to be loaded through the rear. Teague explained to Dahlquist that American had avoided the hatchback because it would have reduced structural rigidity. That much was true -- hatchbacks are significantly less rigid than coupes or sedans -- but the real reason was that there was no money for its development. In fact, the entire development cost of the Gremlin was a modest $12 million, significantly less than Ford spent for its new Pinto subcompact, and one fifth what AMC spent on the Pacer a few years later.

In Teague's surprisingly candid interview with Motor Trend, he made no apologies for the Gremlin's unusual styling. He admitted that it was unlikely to win any beauty contests, but he said it had character, and he hoped it would be an attention-grabber.


The business end of Charlie's '75 Gremlin X. It has the optional V8 engine. AMC's modern V8 originally appeared in mid-1966, then displacing 290 cu. in. (4.7 L). In 1970, its deck height was raised and its stroke was increased, bringing it to 304 cu. in. (5.0 L). In 1975, it cost $154 more than a six, added 258 lb (117 kg) -- most of it, sadly, on the nose -- and offered 150 net horsepower (112 kW). Charlie's has been modified to yield approximately 190 net horsepower (142 kW). (Photo © 2006 Gremmie; used by permission)

The production Gremlin made its debut a few months after its larger brother. It was introduced to the public, amusingly enough, on April 1, 1970. It carried a starting price of $1,879 FOB Kenosha, although that was for the most basic model, with a fixed rear window and no back seat at all. (Only about 3,000 of these price-leader fixed-window cars were sold, and it was soon dropped.) The four-seat Gremlin with flip-up rear glass started at $1,959 -- which compared well with the $1,995 starting price of Ford's Maverick. The Gremlin came with the same inline-six used by bigger AMCs, either a 199 cu. in. (3.3 L) version with 128 gross hp (95 kW) or the 232 cu. in. (3.8 L) with 145 hp (108 kW). Standard also were a three-speed manual transmission with a non-synchronized low gear and four-wheel drum brakes.

Dynamically, the Gremlin's hand-me-down mechanicals produced some decidedly mixed results. The shortened wheelbase made the rear seat uninhabitable except for very small children, although its cargo room was reasonable, especially with the seat folded down. With the same engines as the Hornet and somewhat less weight, the Gremlin had respectable acceleration -- in January 1971, Car and Driver clocked a Gremlin with the big six and manual shift from 0-60 mph (0-97 km/h) in a sprightly 10.5 seconds. On the other hand, because the Gremlin had so few purpose-built components, it was not particularly light for a subcompact, it was nose-heavy, and the manual steering was painfully slow. Worse, the shortened rear springs let the axle hop around in hard braking. The Gremlin was not well suited to enthusiastic cornering or panic stops.


The 1975 Gremlin was 170.3 inches (4,326 mm) long, 9.0 inches (229 mm) longer than the 1970½ model, thanks to its bigger bumpers. Charlie's '75 Gremlin X has non-stock alloy wheels, although the side stripe was part of the original X package. (Photo © 2006 Gremmie; used by permission)

The Gremlin's fuel economy was also disappointing, at least compared to its import competitors. Conservative highway driving could reach 25 mpg (9.4 L/100 km), but in harder use, the heavy body and big six would drop mileage below 20 mpg (11.8 L/100 km), not exactly in keeping with its economy-car mission.

Despite its late introduction, the Gremlin managed a modest 28,560 sales in the 1970 model year. Better yet, total AMC sales were up sharply, by more than 100,000 units for 1970, so the Gremlin was adding business, rather than cannibalizing existing AMC sales. Sales for 1971, its first full model year, were 76,908.

In 1971 the small six was dropped and a bigger, 258 cu. in. (4.2L) version became optional. The switch to net horsepower ratings for 1972 dropped the 232 and 258 engines to 100 and 110 net horsepower (75 kW and 82 kW), respectively, although they were mechanically unchanged from 1971. More helpful was a new automatic transmission; AMC called it Torque Command, but it was actually Chrysler's TorqueFlite 904, which AMC quietly arranged to buy from its rival. It was a vast improvement over the archaic Borg-Warner "Shift Command" transmission it replaced. You could also now order front disc brakes for an extra $47.25, providing notably better stopping power.


The stock Gremlin V8 had a single two-barrel carburetor and rather mild tuning. Charlie has added Hedman exhaust headers, Edelbrock Performer aluminum intake manifold and four-barrel carburetor, a seven-blade aluminum fan, and a high-output ignition coil. At a guess, it probably produces at least 40 horsepower (30 kW) more than it did when it left the factory. (Photo © 2006 Gremmie; used by permission)

More interestingly, starting in 1972, you could get a V8 engine. It was not a great surprise -- Teague had told the press back in 1970 that they would offer a V8 eventually, and the Hornet had offered an optional 304 cu. in. (5.0L) V-8 from the start. The V8, with a single two-throat carburetor, was credited with a modest 150 net horsepower (112 kW), but a healthy 245 lb-ft (331 N-m) of torque. A V8 Gremlin with TorqueFlite could run 0-60 mph (0-97 km/h) in around 8.5 seconds, and the performance hardware AMC had offered for the same engine in the Javelin and AMX could be bolted on. The V8 cost $154 and added nearly 200 extra pounds (90 kg), but it made the Gremlin a real sleeper. Alas, the following year was the first OPEC oil embargo, making the demand for a relatively thirsty V8 subcompact somewhat limited.

Sales climbed steadily each year through 1974 -- the Gremlin's peak, with 171,128 sold. Along the way, there were a number of minor styling revisions and some jazzy trim packages, notably the X package (side stripes, slotted wheels, and some other trim) and the Levi's Edition, which gave the seats upholstery that looked like blue denim, complete with Levi's brass studs, yellow-orange stitching, and tags.


This 1976 Gremlin has the 258 cu. in. (4.2 L) six, this year rated at 95 net horsepower (71 kW), and a column-shifted three-speed automatic. Unlike Charlie's car, this survivor is in remarkably good stock condition, still sporting its original wheelcovers.

In 1977, the Gremlin received a new engine option, a Volkswagen-designed 121 cu. in. (2.0 L) four. This was a derivative of the Volkswagen-Audi EA831 engine, also found in the Porsche 924, although with a two-throat Holley-Weber carburetor, rather than the Porsche's Bosch K-Jetronic fuel injection. AMC paid $60 million for license rights and tooling to build the engine itself, in a plant in Richmond, Indiana. The four had only 80 hp (60 kW), but it reduced the Gremlin's weight by nearly 200 lb (90 kg), so performance was not quite as dire as you might expect. In May 1977, Car and Driver clocked a four-speed Gremlin X with the four-cylinder engine from 0-60 mph (0-97 km/h) in 15.3 seconds, with a top speed of 91 mph (146 km/h); subjectively, they also found it more pleasant than the Gremlin's big six. Buyers were evidently not convinced, for it accounted for less than a third of Gremlin sales.

Gremlin sales had dropped steadily since 1974, a reflection of its dated styling, mediocre packaging, and a host of more sophisticated competitors, like the Volkswagen Rabbit (nee Golf), Honda Accord, and Ford Fiesta. In 1978, its final year, sales were only 22,104. Nonetheless, AMC recycled the Gremlin's mechanical package in 1979 for the slightly more conventional-looking AMC Spirit, which lingered through 1983. Total Gremlin sales were 674,492, plus 191,785 Spirits. That wasn't much by GM standards, but it was respectable for a manufacturer with American's limited resources.

The Gremlin's looks and bargain-basement engineering have often been derided, but we think its real problem was simply that it came to market two or three years too late. If it had appeared in '67 or '68, it would've been an interesting counterpart to the Javelin and AMX, more firmly establishing a new, younger image for AMC. If it had had immediate V8 availability, perhaps with the Javelin/AMX's new 280 hp (209 kW) 343 cu. in. (5.6 L) engine, it would also have been a formidable competitor for the Plymouth Road Runner in the budget muscle sweepstakes. By the standards of 1967, its fuel economy was respectable enough, and buyers would have appreciated its performance. By 1970, though, the performance market was dying on the vine, and buyers were starting to demand greater fuel economy and utility from their small cars.

What the Gremlin never would have done in any case was seriously compete with the Beetle. For all the domestic industry's fear of the Volkswagen, none of the U.S. automakers really understood why people were buying them. It wasn't that the Beetle was a particularly good car -- for all of VW's continual evolution, it was hopelessly obsolete, and its performance was abysmal. The excellent assembly quality and strong dealer service certainly helped, but the main reason people bought Volkswagens was not what they were, but what they were not. VWs were not real cars by Detroit standards. The Beetle was impossible to really take seriously; in the parlance of the day, it was a put-on. Buying a VW was a minor act of protest, a thumbing of the nose at the whole Alfred P. Sloan automotive class system. It was about being different.

In that respect, the Gremlin was a smarter response to the Beetle than most people usually give it credit for. It wasn't sexy, but it was certainly unique, with an impish character far removed from the dowdy Pinto. Furthermore, for all the derision the Gremlin received for its parts-bin engineering, it cost far less to develop than either the Ford Pinto or Chevrolet Vega, it had very few of those cars' well-publicized faults. The Gremlin's own deficiencies were not unlivable, or, compared to other cars of the time, particularly egregious. Compared to its domestic contemporaries, the worst that can be said of it is that it was a little weird-looking. Dick Teague's cut-down compact emerges as an honorable effort and a decent success -- no small feat for a car engineered on a shoestring and sketched on an air-sickness bag.

Special note: The blue Gremlin seen here (and the matching Pacer we'll see in part two) is owned by Charlie and Debbie from the northeast (Gremmie on Flickr), who've been kind enough to let us use their photos. We'll talk more about these specific cars in our next installment.

# # #

Our initial sources included: Alfred Koos, "A Brief History of the Gremlin" (no date, GremlinX.com, http://www.gremlinx.com/Gremlin-history.htm, accessed 13 October 2007); Eric Dahlquist, "1970 Gremlin," Motor Trend, March 1970 (Vol. 22 No. 3), pp. 70-72, 106; "A Small World to Conquer: Six-Car Comparison Text: AM Gremlin, Chevrolet Vega 2300, Ford Pinto, Simca 1204, Toyota Corolla, Volkswagen Super Beetle, Car and Driver, January 1971 (Vol. 16, No. 7), pp. 20-29; Don Sherman, "Road Test: AMC Gremlin X: They think 80 hp and 2600 pounds is funny? Tell 'em it's a Porsche," Car and Driver, May 1977 (Vol. 22, No. 11), pp. 103-106); and Drew Beck, "The Gremlin: AMC's Successful Compact" (1992, 2006, Allpar.com, http://www.allpar.com/amc/gremlin.html, accessed 13 October 2007).

We subsequently revised this article incorporating new information from Todd Ruel's 29 July 2006 interview with Bob Nixon (6 October 2007, Torq-o.com, http://www.torq-o.com/Podcasts/podcasts.html, accessed 7 December 2009) -- which was the source of Bob Nixon's description of the Gremlin as a "short-sheeted" Javelin -- and Patrick Foster, "Bob Nixon: AMC's Master of Design," Hemmings Classic Car, April 2009, pp. 48-51.

This article's title, inevitably, was suggested by the film Gremlins (produced by Mike Fennell and Steven Spielberg, directed by Joe Dante, written by Chris Columbus, United States, Warner Bros., 1985).

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