To consolidate the marketing and maintain distribution through AMC dealerships following the 1987 acquisition, the
Jeep-Eagle division of Chrysler Corporation was formed. Chrysler's initial problem was that unlike the Big Three, which had multiple brands under their corporate name, American Motors had sold passenger cars under its corporate initials of "AMC" since 1970. Thus, without having a separate brand from the now-defunct company, Chrysler management looked to re-brand the legacy vehicles inherited by purchasing AMC under the Eagle name instead of trying to fold those outside-designed products into Chrysler's existing distribution structure. A limiting factor is that almost all states "have dealership-friendly franchise regulations" that do not allow manufacturers flexibility because the laws provide dealerships territorial exclusivity, including protection from new competition, as well as limit dealership franchise termination to the point that even "gross inefficiency and poor financial condition are not legitimate grounds for termination." Two of Eagle's first models, the
Eagle Premier and the
Eagle Medallion, were designed by AMC in cooperation with its former corporate partner (and 46.4 percent owner),
Renault. The remainder of the brand's cars were
rebadged versions of cars sold by other
Chrysler Corporation divisions, as well as some
captive imports produced by
Mitsubishi Motors. At one point, an Eagle variant of Chrysler's popular
AS platform minivan was in the planning stages, but this variant never made it to market. Unlike Chrysler,
Dodge, and
Plymouth branded automobiles, the Eagle models lacked the Chrysler Corporation "
pentastar" logo. Instead, all models prominently featured the Eagle head
logo. Throughout its history, the Eagle brand needed more product recognition, although its Premier was technically more advanced than anything offered by Chrysler. Most of Eagle's models were available in Chrysler-Plymouth, Dodge, and Mitsubishi dealerships under different guises. Chrysler was in financial difficulty at the end of the 1980s and did not have the funds to spread to its new automotive division. Moreover, Jeep vehicles were popular and profitable, so most of the division's
marketing resources flowed to the Jeep product range. Since Jeep's products had better recognition and higher profit margins, many dealers emphasized Jeeps. They considered the Eagle line of passenger cars to distract that business. Their sales and service expertise was primarily in the
four-wheel drive Jeeps and AMC's Eagle all-wheel-drive models. Furthermore, the dealership network was realigned following Chrysler's acquisition of AMC. Some former AMC/Jeep dealers were consolidated with Chrysler-Plymouth
franchises. Up to this point, Chrysler-Plymouth outlets needed a
sport utility vehicle (SUV) to sell, and adding the Jeep line helped dealers offer customers a range of vehicles in a rapidly growing market segment. The merger may have helped the individual dealerships that signed on. Still, it caused the nascent Eagle division and its largely derivative models to compete unfavorably for attention with Chrysler's and Plymouth's often similar, but longer-established and better-recognized lines of passenger cars. ==Phase out==