Richard E. Cross
Encyclopedia
Richard Eugene Cross was an American business executive in the automotive industry
Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....

 and a lawyer
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...

.

Career at AMC

Richard E. Cross was a "quiet, analytical attorney" who served as legal counsel for American Motors Corporation
American Motors
American Motors Corporation was an American automobile company formed by the 1954 merger of Nash-Kelvinator Corporation and Hudson Motor Car Company. At the time, it was the largest corporate merger in U.S. history.George W...

 (AMC). He drew up the 1954 merger papers that created the new company from Nash-Kelvinator and Hudson Motor Car Company
Hudson Motor Car Company
The Hudson Motor Car Company made Hudson and other brand automobiles in Detroit, Michigan, from 1909 to 1954. In 1954, Hudson merged with Nash-Kelvinator Corporation to form American Motors. The Hudson name was continued through the 1957 model year, after which it was dropped.- Company strategy...

. Cross became a director of the company in 1954, and in 1959, a member of the policy committee.

He was one of a duumvirate succeeding George W. Romney
George W. Romney
George Wilcken Romney was an American businessman and Republican Party politician. He was chairman and CEO of American Motors Corporation from 1954 to 1962, the 43rd Governor of Michigan from 1963 to 1969, and the United States Secretary of Housing and Urban Development from 1969 to 1973...

, who at the time was technically on leave of absence. In 1962, at age 52, Cross was elected chairman of the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 as well as the chief executive officer, while Roy Abernethy
Roy Abernethy
Roy Abernethy was an executive in the American automobile industry, serving as CEO of American Motors Corporation from February 1962 to January 1967. Prior to his tenure at AMC, Abernethy had been with Packard Motors and Willys-Overland. Abernethy replaced George W...

 was named president of AMC.

This was a turbulent time in AMC's strategy
Strategy
Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is concerned with how different engagements are linked...

 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). However, in September 1962, AMC paid off an US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

80 million loan and became the only U.S. automaker free of long-term debt. 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. 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.

In June 1966, Cross was forced to step down from the CEO post and was replaced by Robert B. Evans
Robert B. Evans
Robert Beverley Evans, Sr. was an automobile industry executive, a prominent Republican, an industrialist, a socialite, and an avid sportsperson...

. Cross became chairman of AMC's executive committee and could devote more time to his practice of law
Practice of law
In its most general sense, the practice of law involves giving legal advice to clients, drafting legal documents for clients, and representing clients in legal negotiations and court proceedings such as lawsuits, and is applied to the professional services of a lawyer or attorney at law, barrister,...

 in Detroit, Michigan
Detroit, Michigan
Detroit is the major city among the primary cultural, financial, and transportation centers in the Metro Detroit area, a region of 5.2 million people. As the seat of Wayne County, the city of Detroit is the largest city in the U.S. state of Michigan and serves as a major port on the Detroit River...

.

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