Renault Encore

American Motors Corporation
	File:AMC logo 1980.svg AMC logo used during the 1980s
Company type	Public
Industry	Automotive
Founded	May 1, 1954; 72 years ago in United States
Defunct	1987
Fate	Acquired by Chrysler
Headquarters	Kenosha, Wisconsin, United States
Key people	Dick Teague (VP of Design), Jose Dedeurwaerder (President)
Products	Automobiles (including Renault Alliance, Encore)
Number of employees	2,000 (temporary layoffs in 1986) (1986)

The Renault Alliance was a subcompact automobile featuring a front-engine, front-wheel-drive layout, manufactured and sold in North America by American Motors Corporation (AMC) between 1983 and 1987. This model, along with its hatchback counterpart known as the Encore, represented redesigned adaptations of the European Renault 9 & 11, tailored specifically for the U.S. and Canadian markets.

Originally available in two- and four-door sedan configurations, AMC broadened the lineup in 1984 by introducing three- and five-door hatchback versions under the Renault Encore designation, followed by a convertible variant in 1985. In 1987, AMC also launched a sportier trim called the Renault GTA. Overall production totaled 623,573 vehicles at AMC’s Kenosha, Wisconsin facility before the model was discontinued after Chrysler acquired AMC in 1987.

The creation of the Alliance and Encore was a direct outcome of AMC’s strategic alliance with Renault that began in 1979 when Renault took a controlling interest in AMC. The exterior design was crafted by Renault’s Robert Opron, while interior styling was overseen by AMC’s Dick Teague. Notably, AMC was responsible for developing the unique two-door sedan and convertible body styles exclusive to these models.

History

Facing intense rivalry from the "Big Three" U.S. automakers, rising competition from Asian imports, stricter safety standards, and the effects of the 1973 oil crisis and 1979 energy crisis, American Motors struggled within the domestic market. AMC's lineup included government fleet vehicles, Jeep models, and passenger cars; however, sales sharply declined in 1979 during an economic downturn, placing AMC’s future at risk with only about 2% market share of U.S. passenger cars.

Lacking access to bank financing for new vehicle development, AMC sought financial support from Renault in the form of a $90 million loan. As the early 1980s recession unfolded, AMC agreed to grant Renault equity stakes in return for distribution rights to sell Renault vehicles across the U.S. Unlike Chrysler, which secured $1.5 billion in federal loan guarantees due to its size, AMC was not considered "too big to fail" and thus turned to the French government-backed automaker for help. By late 1980, Renault had gained controlling ownership of AMC, leading some observers to dub it "Franco-American Motors."

With a depreciated U.S. dollar against the French franc and escalating fuel costs, manufacturing within the United States became a strategic move for Renault to increase market penetration by producing fuel-efficient cars at AMC’s existing factories—circumventing challenges similar to those Volkswagen faced with its Westmoreland plant.

The two companies collaborated extensively on vehicle design; Richard Teague, AMC’s Vice President of Design, worked closely with Renault’s Robert Opron through frequent exchanges of ideas. While initially planning only a four-door sedan version, AMC developed a two-door coupe prototype to capture wider consumer appeal.

Renault executives integrated into AMC’s management as the Kenosha plant underwent retooling to produce an Americanized iteration of the Renault 9 subcompact under the "Alliance" brand name. Market analysis revealed that buyers favored the Renault badge slightly more than AMC’s own branding; consequently, the Renault Alliance debuted with limited AMC identification.

Production commenced in 1982, making Renault only the second European manufacturer to assemble vehicles in the United States. Positioned within the affordable segment, the base two-door Alliance started at $5,595. The car earned European Car of the Year honors for 1982 and was marketed as "the bargain of the year" in America for 1983.

Model years

The Alliance entered the competitive U.S. subcompact segment, contending with vehicles such as the Chevrolet Chevette, Ford Escort, Toyota Corolla, Volkswagen Rabbit, Dodge Omni and Plymouth Horizon from Chrysler, Mazda GLC, Subaru DL, Nissan Sentra, and Honda Civic.

1983

Introduced in June 1982 as a 1983 model year, the Alliance was available as either a two- or four-door sedan following a $150 million modernization of AMC's Kenosha manufacturing facility. Although it was marketed under the Renault nameplate, the car displayed AMC branding and qualified as a domestic product due to having more than 70% of its components sourced from the U.S.

This front-wheel-drive model measured in length with a wheelbase of , featuring a fuel-efficient transverse-mounted four-cylinder engine. It came well-equipped as standard and achieved approximately in urban driving conditions, with highway fuel economy close to when equipped with the five-speed manual gearbox—an appealing feature in the post-oil crisis market environment.

The powertrain consisted of a Renault-supplied 1.4-liter OHV inline-four engine derived from the Renault Le Car. Most variants utilized Renix throttle-body fuel injection, while California-spec models were fitted with multi-port injection systems to comply with stricter emissions regulations. The engine incorporated sophisticated electronics such as an electronically controlled fuel delivery system, digital ignition timing, and a microprocessor that managed the optional three-speed automatic transmission—an advanced technology for mainstream vehicles in the United States at that time.

Available transmissions included four- and five-speed manual options alongside a three-speed automatic transaxle. The base engine produced , enabling the vehicle to accelerate from 0 to 60 mph in 14.3 seconds and reach a top speed of . Steering was rack-and-pinion type; suspension featured fully independent setups with MacPherson struts up front and transverse torsion bars combined with trailing arms at the rear. Weighing just under , the Alliance ranked among the lightest American-assembled cars during its era.

While marginally smaller on the outside compared to rivals like the Ford Escort, the Alliance provided a more generous interior space for four or five occupants by employing innovative front seats mounted on a central rail system that maximized rear legroom. Higher-end DL trims included curved seat tracks designed to enhance passenger comfort.

Despite offering limited body styles during its initial year, sales surpassed 142,000 units. AMC also adapted some four-door Alliances into stretch limousine configurations for promotional purposes and official use.

1984

In 1984, American Motors introduced the Encore, a complementary hatchback variant available in both two- and four-door configurations. Slightly shorter by than the sedan versions of the Alliance, the Encore was aimed at younger and more upscale customers by featuring a redesigned rear section and increased practicality while maintaining much of the Alliance's mechanical foundation. California models incorporated Bosch LU multi-point fuel injection systems. That year’s lineup also brought forward electronic advancements including infrared remote locking capabilities, a "Systems Sentry" fluid monitoring feature, and electronically tuned audio systems.

The introduction of hatchback models contributed to rising sales figures exceeding 208,000 units in 1984. Despite financial difficulties faced by its French partner Renault, AMC recorded a $7.4 million profit during the fourth quarter of 1983, ending a streak of fourteen consecutive quarters of losses. Jose Dedeurwaerder, Renault executive and AMC president, confirmed that 1984 marked AMC’s first profitable year since 1979 after incurring losses totaling $637.6 million.

Nevertheless, the Encore arrived during a period of declining demand for small cars as lower fuel prices encouraged consumers to favor larger vehicles. The Renault-based models confronted strong competition from budget-friendly options like Chevrolet Chevette and Pontiac 1000, Ford Escort and Mercury Lynx twins, Dodge Omni and Plymouth Horizon counterparts, along with increasingly popular Japanese imports.

1985

In 1985, AMC rolled out an optional 1.7 L EFI engine paired with a 5-speed manual transmission across all trim levels except the base variant. This powerful engine delivered at 5000 rpm and torque at 3000 rpm, engineered to run on either gasoline or diesel. It also incorporated a fully pressurized cooling system designed to minimize corrosion and reduce coolant leakage.

That year, the Alliance range was broadened with the addition of a convertible model—the first AMC convertible since 1968—created in collaboration with American Sunroof Company to enhance unibody torsional stiffness during assembly in Kenosha, Wisconsin.

Requests from dealers for an Alliance-based station wagon were instead directed toward the larger Renault 18 Sportwagon.

By this time, as the fuel shortage crisis eased, American buyers started moving away from subcompact cars like the Alliance and Encore in favor of bigger vehicles. Increased competition from imported models further lowered combined Alliance and Encore sales to roughly 150,000 units.

1986

With economic improvement and declining fuel prices, total sales fell to about 65,000 units in 1986. AMC had discontinued the Concord and Spirit models by 1983, while the four-wheel-drive AMC Eagle remained available. The larger Medallion, intended as a successor to the Renault 18, did not arrive until 1987. Late in 1986, AMC promoted zero-percent financing deals on the Alliance and Encore lines. By mid-December, approximately 2,000 hourly employees at the Kenosha facility faced temporary layoffs through early January to better align production with sales demand.

1987

For the 1987 model year, AMC launched the GTA, a sportier variant inspired by the Alpine GTA. All models featured a redesigned front end with updated headlights, and the Encore hatchbacks were rebranded as Alliance Hatchback.

Confronted with financial difficulties and political pressures under French President François Mitterrand, Renault opted to withdraw from AMC. On March 9, 1987, Chrysler agreed to acquire Renault’s shares along with all remaining AMC stock for approximately US$1.5 billion, folding AMC into its newly established Jeep-Eagle division.

Chrysler’s acquisition centered on securing the profitable Jeep brand and the newly built Brampton Assembly plant in Ontario. During the first five months of 1987, only 13,390 Alliances were sold amid growing inventory levels. Nonetheless, promotional materials for the 1988 model year indicated Chrysler’s intention to continue offering the subcompact Renault Alliance.

Production of the Alliance at Kenosha ceased on June 5, 1987. The model competed against Chrysler’s own domestic and imported small cars such as the Dodge Omni, Shadow, and Colt, alongside comparable Plymouth models.

Following this acquisition, Chrysler inherited a largely underperforming lineup that included Renault imports which did not fit its strategic direction. Approximately 35,000 Alliances were sold during their final production year in 1987.

GTA

The Renault GTA was a limited-edition performance variant of the Alliance released for the 1987 model year. Marketed as an affordable "pocket rocket," it focused on sporty styling, enhanced performance, and improved handling—akin to Volkswagen’s strategy with the Rabbit GTI.

Offered as a two-door sedan or convertible, the GTA housed a 2.0 L fuel-injected four-cylinder engine producing at 4900 rpm when running on premium U.S. gasoline. It accelerated from zero to 60 mph in approximately 10.2 seconds and achieved a .89 g cornering force rating according to Car and Driver road tests.

Built upon the two-door Alliance unibody platform, the GTA featured distinctive monochromatic paint schemes—silver, white, red, or black—and body-colored "ground effects" side cladding designed by Zender GmbH of West Germany. It came equipped with 15-inch aluminum alloy sport wheels fitted with low-profile Michelin Sport XGT tires; suspension upgrades included thicker sway bars; vented front disc brakes; a larger exhaust tip; optional driving lights; unique body moldings; a rear spoiler; a red-accented shift knob; close-ratio manual transmission gearing; stiffer engine mounts; an enlarged brake booster; and specially contoured racing seats. No automatic transmission was available.

Reviews highlighted its blend of comfort and responsive handling on twisty roads, although aggressive acceleration could lead to wheel spin and torque steer.

The GTA served as a final effort to boost Alliance sales before its discontinuation following Chrysler’s takeover of AMC and Renault’s withdrawal from the American market.

Reception

In 1982, the Renault 9 earned the title of European Car of the Year, quickly becoming France's top-selling automobile and Renault's most successful model in terms of sales.

The Alliance secured the number one spot on Car and Driver's Ten Best list for 1983, receiving accolades for its compact dimensions, comfort, fuel efficiency, design, and driving dynamics. With a U.S. content level of 72%, this American-assembled yet French-designed vehicle qualified as a domestic product and made history as the first foreign-named car to win the Motor Trend Car of the Year award in 1983.

A comprehensive long-term evaluation by Popular Mechanics praised the four-door Alliance for its economical operation, solid construction, and exceptional ride quality. The test emphasized the vehicle’s smooth engine performance and superior suspension system, which effectively managed rough terrain and tight corners. A 1983 owner survey revealed that 60% rated the vehicle’s build quality as excellent, outperforming typical American-made cars. Editor John Linkletter highlighted that this Franco-American partnership challenged prevailing assumptions about U.S. manufacturing standards.

In 1983, Popular Science described the Alliance as a "miracle for AMC," combining robust build quality with advanced front-wheel-drive technology, positioning it favorably against both domestic and imported compact cars. According to The New York Times, AMC experienced a remarkable 117.6% increase in U.S. sales in part due to the Alliance’s success.

By 1985, a long-term review characterized the Alliance as a dependable yet straightforward vehicle featuring practical amenities. In a 1986 comparison with newer Asian competitors, Popular Science noted that although the Alliance was based on an older design, it remained "the most refined," boasting superior handling and construction quality compared to vehicles like the Hyundai Excel.

The 1987 convertible version of the Alliance GTA received commendations from Popular Mechanics for turning an economical model into an agile "Pocket Rocket."

Despite initial favorable reviews for models such as the Alliance and Encore, AMC’s market share had dwindled to approximately 1 percent by 1987, as documented by The New York Times.

Racing series

The Sports Car Club of America (SCCA) successfully launched the Renault LeCar Cup spec-racing series. Although equipped with a modest 1.4 L engine, the Alliance’s outstanding ride comfort and handling gave it a competitive advantage among small cars in America, leading to the creation of the Alliance Cup in 1983. Permitted modifications on showroom stock vehicles were limited to roll cages, free-flow exhaust systems, enhanced shocks, and wider wheels and tires.

Many components from the Alliance—particularly engine and suspension parts—were utilized in the Sports Renault race car, which debuted as a single-make series organized by SCCA in 1984. Conceived by Roy Lunn and developed by Renault/Jeep Sport USA in Livonia, Michigan under Vic Elford, over 500 units were produced. While most remain active today, many have been converted to Ford powertrains and are now known as Spec Racer Fords competing within SCCA club racing events.

Legacy

Winning the 1983 Motor Trend Car of the Year award significantly enhanced Renault Alliance sales and contributed to AMC's earnings of approximately $15 million in 1984 (adjusted for inflation to current US dollars).

The Alliance enabled AMC to penetrate the compact car segment without incurring substantial expenses for design and tooling. Nevertheless, AMC's alliance with Renault compelled the company to sell off its lucrative AM General commercial and military vehicle division, as U.S. regulations prohibited foreign entities from owning domestic military contractors.

Automotive analyst Gary Witzenburg observed that the Alliance sedan’s "outstanding reputation and remarkable initial success" prompted AMC to phase out larger models such as the Spirit and Concord, replacing them with new hatchbacks under alternative nameplates. Although 200,000 units were sold by late 1984, the limited variety of models restricted AMC’s ability to compete with rivals offering more extensive product lines.

Renault faced challenges in fully tailoring its European-designed vehicles to meet U.S. consumer preferences. The Alliance’s engine, already less powerful, was further limited by strict American emissions regulations, and features favored by U.S. buyers—such as air conditioning—were infrequently included. Moreover, adverse currency exchange rates during the mid-1980s and inadequate support for AMC’s non-exclusive dealer network negatively affected profitability and brand perception. Inconsistent quality control across the distribution system led to increased warranty claims and harmed the brand’s reputation.

While the Alliance is frequently credited with providing crucial financial relief to AMC, it may have simultaneously hastened the company’s loss of autonomy.

The Encore name was later revived in the U.S. market in 2013 as a compact Buick SUV.

References

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