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A letter to shareholders in 1959 claimed that the introduction of new compact cars by American Motors' large domestic competitors (for the 1960 model year) "signals the end of big-car domination in the U.S." and that American Motors predicts small-car sales in the U.S. may reach three million units by 1963. [20]
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It was "the muscle car formula of stuffing a big motor in a small car." [ 36 ] Engine ratings were downgraded to more accurate Society of Automotive Engineers (SAE) net hp figures, bringing the 232 cu in (3.8 L) engine to 100 hp (75 kW; 101 PS), the 258 cu in (4.2 L) to 110 hp (82 kW; 112 PS) [ 37 ] and the 304 V8 to 150 hp (112 kW; 152 PS). [ 37 ]
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Henry J. Kaiser had hoped to profit through volume production; however, the slow sales of cars negated his plan. The automobile market was competitive, and challenging the U.S. "Big Three" — General Motors, Ford, and Chrysler — proved difficult as price wars began that had a devastating impact on small domestic automakers. [18]
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