 "Vehículos Automotores Mexicanos" was established as its own company 1963 after 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. (established since 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 transformed into VAM in 1963 after an agreement between American Motors Corporation (AMC) and the Mexican Government.After the restructuring of the original company, VAM proceeded to the construction of its own engine plant located in the municipality of Lerma, "Estado de México".