Richard E. Cross

Richard E. Cross at American Motors during the 1960s

Richard Eugene Cross was an American business executive in the automotive industry and a lawyer.

Career at AMC

Richard E. Cross was a "quiet, analytical attorney" who served as legal counsel for American Motors Corporation (AMC).^[1] He drew up the 1954 merger papers that created the new company from Nash-Kelvinator and Hudson Motor Car Company.^[1] Cross became a director of the company in 1954, and in 1959, a member of the policy committee.^[1]

He was one of a duumvirate succeeding George W. Romney, who at the time was technically on leave of absence.^[2] In 1962, at age 52, Cross was elected chairman of the board of directors as well as the chief executive officer, while Roy Abernethy was named president of AMC.^[1]

This was a turbulent time in AMC's strategy development. While the rest of the industry had record earnings, AMC's profits and return on sales dropped (from 7% of its sales in 1959, to an estimated 3.5% return for 1962).^[2] However, in September 1962, AMC paid off an US$80 million loan and became the only U.S. automaker free of long-term debt.^[2] Management could go after new markets, but the company had developed a resistance to extensive restyling.

Cross supported the change away from Romney's legacy of the "economy-car" image and their "boxy" styling.^[3] This involved the automaker making major design, styling, and marketing changes, as well as the addition of new convertibles and sporty models that were promoted by Abernethy.^[4]

In June 1966, Cross was forced to step down from the CEO post and was replaced by Robert B. Evans.^[5] Cross became chairman of AMC's executive committee and could devote more time to his practice of law in Detroit, Michigan.^[5]

"Cross was an urbane, hardheaded lawyer, as well as the chief executive officer at AMC making long-term decisions"^[2]

References