I don't know why "The 1967 American Motors" should be any more impressive than the 1966, but they seemed to think it was a big deal. This year was a big deal for Ambassador though. It was moved up to a two inch longer 118" wheelbase in order to finally compete head to head with the full-size 119" cars from the Big Three. The previous increase in size had happened in front of the windshield, adding no more interior volume. I assume that this one added space to the pasenger and trunk area where it would be appreciated most. Their respective brochures don't have much in the way of measurements but they indicate that the new car was 2.5" longer and 4" wider.
The previous 287 and 327 V8s were replaced by newly designed in 290 and 343 Gen II engines. The 287 was an economy engine that had never been available with a 4 barrel carburter and the new 290 two barrel had only two more horsepower at 200. But the 4 barrel 290 produced 225. Power for the two barrel 343 sank to 235 from 250 but the four barrel went from 270 to 280. 1968 would bring a 390 engine on board with 315 horsepower.
1967 also saw a change to the struggling Marlin model. It was moved from the Rambler Classic/Rebel chassis to the larger Ambassador chassis. This put it in line with the similarly styled Dodge Charger and an extra six and a half inches of length allowed the fastback roof to flow more smoothly than before. But to my eye, the stacked headlamp front end is not as attractive or sporty as earlier cars. Sales fell by 44% from 4,547 to 2,545 cars and the Marlin was discontinued at the end of the model year. All was not lost however, AMC had the Javelin and AMX on the starting blocks for 1968 in the popular pony car segment.
The Dodge Charger had also seen a huge drop from its introduction and was restyled for 1968, dropping the fastback roof and becoming much sexier overall.