By the early 1980's, the loans were being repaid at a brisk pace and new models based on the K-car platform were selling well. A joint venture with Mitsubishi called Diamond Star Motors strengthened the company's hand in the small-car market.
The acquisition of AMC by Chrysler in 1987, mostly for its Jeep brand, bolstered the firm further, although Chrysler was still the weakest of the Big Three American auto makers.