Solve the Oil Crisis with the New 1974 AMC Gremlin Hatchback
Anger among the leaders of the Arab oil-producing nations over American support for Israel during the Yom Kippur War led to a painful oil embargo in the fall of 1973, which caused fuel prices to skyrocket here.
This made it tough for Detroit to move big, thirsty cars out of showrooms, but looked like an opportunity for companies building smaller machines. Here's a magazine advertisement for the (relatively) fuel-efficient 1974 American Motors Corporation Gremlin and its powerful warranty.
Yes, the goofy-looking Gremlin (which was at heart a shortened Hornet with a hatchback rear) came standard with a 232-cubic-inch (3.8-liter) straight-six engine as base equipment. That made it much more powerful than Chevrolet's Vega and Ford's Pinto, while its small size allowed it to get decent gas mileage—by the forgiving standards of the era.
On top of that, the folks in Kenosha, Wisconsin, offered an impressive warranty that covered every single part on the car (except tires) for a full year, plus up to $150 to cover food and lodging if your new AMC stranded you on a trip. That was serious stuff for 1974.
