American Motors was formed from the merger of Nash Motors and Hudson Motor Car Company, and the company hired Abernethy in 1954. During AMC's formative years, the company struggled with costs and sales. Abernethy became vice president of sales and concentrated on building AMC's sales and distribution network. He recognized that promotion and advertising are useless without a strong dealer organization, so his first task was to convert every Hudson and Nash dealer into an AMC dealer. He then kept many of these dealers allied with AMC, thus helping to keep the corporation afloat, until AMC found its compact car niche under Romney's leadership. He was known to fly a year to make AMC synonymous with the compact car. Abernethy achieved sales successes for the company and by 1962, Rambler was number three in sales rank among all the brands of cars sold in the United States.