Business Notes Autos

Ailing American Motors is looking to cut a deal with a competitor. AMC said last week that the company was negotiating to build Chrysler's full-size Fifth Avenue, plus its Dodge Diplomat and Plymouth Gran Fury models. The proposed pact could help Chrysler as well as enable

AMC to recall most of the 3,700 workers who have been laid off at its Kenosha, Wis., plant.

Additional revenues would come in handy for AMC. The only U.S. automaker now running in the red, it lost $18.9 million during the first quarter. Sales of its Alliance and Encore subcompacts fell 41%. To help stem the losses, AMC has hired Actor George C. Scott to be its TV spokesman. It may be Scott's most challenging role since Patton.