1974

Ambassador sales had remained steady since 1970, despite the lack of major changes to the vehicle. However, the 1974 model year would bring out the biggest Ambassador — just as the 1973 Arab Oil Embargo sparked gasoline rationing across the nation. The Ambassador sedan was stretched seven inches (178 mm) compared with the 1973 versions. This additional length was due to a new front end design and energy absorbing bumpers.
The 1974 Ambassador Brougham was no longer available as a 2-door hardtop, leaving just the sedan and wagon in the line. The hardtop's cancellation was due in part to low sales volume, as well as the introduction of a sleek, sporty new Matador coupe. It was probably not seen as suitable for AMC to build a formal-styled Ambassador version from the same platform.
Styling changes for the sedan and wagon included new front fenders and hood, grille, bumpers, rear fascia, instrument panel, interior trim, hood ornament, and a new font for the Ambassador nameplate. The grille showed off a new squared-off loop-type design surrounding the circular recessed quad headlights, and featured a forward-protruding center. The insert held a crosshatch pattern dominated by two thick horizontal bars that connected the headlight bezels and contained new parking lights between them. These parking lights had amber lenses, followed the grille protrusion forward, and were overlaid by the grille's crosshatch trim. Headlamp bezels were once again blacked out in their recessed areas. The new hood and front bumper followed the grille's central protrusion forward, giving the car a slight "coffin nose" look. The contemporary Matador saw a similar frontal treatment, but with a much more pronounced effect and with different single headlamp clusters, hood, and grille insert.
At the rear, the new bumper was much larger and backed by shock absorbers, as it was beefed up to comply with new National Highway Traffic Safety Administration regulations for standardized front and rear bumpers on passenger cars that could sustain a 5 mph (8 km) impact with no damage. Fiberglass end caps were added to the ends of each rear fender on sedans. They wrapped inward to create a recessed space that met a carryover decklid. In this space was mounted the new rectangular taillight housings, which featured taller white backup lights mounted inboard of the new taillights. The license plate moved from the rear bumper to the area between the new taillight assemblies, and the whole taillight and license plate system on the sedans was surrounded its own loop of chrome trim.
The cargo area and the rear design of station wagons remained similar to previous Ambassadors, save for a massive new bumper and revised taillamps. The wagon was available with two-row bench seats for six passengers or with a rear-facing third row for a total eight seat-belted passengers. All came with numerous practical, appearance, and comfort items as standard. These included a two-way opening tail gate: (1) hinged at the bottom for convenient loading or hauling long cargo and (2) hinged at the side to open as door for ease of entry and exit for passengers or cargo; wood grained semi-transparent vinyl side and rear trim, a full-length roof rack; as well as a chrome and wood grain roof air deflector to help keep the tailgate window clean.
Powertrain selections remained the same with only V8 engines mated to automatic transmissions. Other increases for 1974 included a larger capacity fuel tank (24.9 gallons or 94.2 liters) and an alternator producing 62 amps. New sound insulation made the Ambassador even quieter. All came with a very lengthy list of standard equipment that was typically optional on competing makes. These included comfort items such as air conditioning and vanity mirror to appearance enhancements such as pin striping and whitewall tires.
Sales of all full-size vehicles, regardless of the automaker, fell significantly in 1974 as America's focus shifted to smaller cars. Ambassador sales were no different, and in June 1974, the final AMC Ambassador rolled off the Kenosha, Wisconsin assembly line, ending a nameplate that had been in continuous production in some form for 48 years.