The president of Nash, George Mason, had already been in touch with Abraham E. Barit, who ran Hudson, back in 1946. He suggested the companies merge to better withstand competition from the "big three". In 1946 Barit had no interest because Hudson was successful. Now Barit approached Nash with the same plan. The American Motors Corporation was formed in January 1954. Hudson though had nothing but debt to offer the new company. Because things at Nash were slightly better, Mason became the overall head of the new company with Barit one of the directors.
Hudson cars were fitted with Nash bodies and were sold as Hudson Rambler, Wasp and Hornet. The 3,320 cc six cylinder engine of the Wasp produced 112 bhp at 4,000 rpm initially, increased in 1956 to 132 bhp to provide a top speed of 94 mph (150 kph).