The story
Vehículos Automotores Mexicanos was established as its own company in 1963. The Mexican Government passed a law to control the privately owned Sociedad Mexicana de Credito Industrial (SOMEX), the parent company of Willys Mexicana S.A. (which was established in 1946 as a local manufacturer and distributor for Willys-Overland Jeeps and used both the names VAM and Willys Mexicana on its products) that held the license to produce and import AMC Ramblers.
Willys Mexicana was renamed VAM in 1963 following an agreement between American Motors Corporation (AMC) and the Mexican Government. After the restructuring of the original company, VAM proceeded to construct its own engine plant in the municipality of Lerma. At the same time, AMC took a 40% equity interest in VAM, but did not actively participate in the company's management. Government content regulations required that VAM vehicles have at least 60% locally sourced parts.
American Motors' stake in VAM passed into Renault's operations in late 1980, when Renault assumed majority (controlling) ownership of AMC. The last AMC-based cars were produced in 1983, the same year that AMC produced its last two-wheel-drive cars in the United States. Beginning in 1984, the company produced several Renault models as VAM vehicles.
The Mexican economy entered a recession and a devaluation of the Mexican peso beginning in 1982. The president of Mexico, Miguel de la Madrid Hurtado, introduced neoliberal economic reforms to encourage foreign investment and initiated widespread privatization of state-run industries. This included the sale of the Mexican government's interest in VAM to Renault. The Mexican government paid Renault US$200 million to take over VAM and assume its debts in 1987. Renault then ended VAM as an entity.
The enterprise represented one of the most significant industrial experiments aimed at developing an automotive industry with the involvement of the government and the ability to adapt vehicles to the needs of the Mexican market.
From Wikipedia’s article on Vehículos Automotores Mexicanos, shared under CC BY-SA 4.0.4