On August 06, 1987, The Chrysler Corporation acquired the American Motors Corporation. Chrysler's cost for the deal, including the assumption of debts, was estimated at $1.5 billion.

Lee A. Iacocca, chairman of Chrysler, announced that Mr. Cappy, then president of AMC, would join Chrysler as a group vice president for marketing of the Jeep and Eagle brands. Eagle was the badge given to non-Jeep products from AMC, and the Renault line was dropped, since they sold their shares to Chrysler.