Chrysler no longer owned by US Gov.

There really was no downfall to AMC, they just got bought out. Chrysler found out that Renault was making a big pile of money, almost exclusively from JEEPs, when AMC was sold. Renault only sold AMC because the natives back in France were restless.

Yes many of the AMC products were pretty lame or worse but they were profitable at the time but then so was Chrysler and they were only making K-car derivatives and old trucks.