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Kaiser Jeep was the result of the merger between the Kaiser Motors, an independent automaker based in Willow RunMichigan, and the Toledo, Ohio-based Willys-Overland Company.

Founded by John North Willys, Willys-Overland had survived World War II by producing the Jeep vehicle for the armed forces, and Jeep was considered the crown jewel of Willys-Overland.

While Joseph W. Frazer had left Kaiser-Frazer by 1950, Frazer had been the one-time president of Willys-Overland. Going it alone, Henry J. Kaiser pursued a merger between Kaiser Motors and Willys-Overland, which was arranged in 1953. Kaiser's finances ultimately dictated that he could no longer compete with the established manufacturers in the passenger car business in the U.S., but he saw value in Willys' Jeep line.

 In 1955, Kaiser phased out both the Kaiser and Willys passenger car lines, and shipped the dies to Argentina where the joint venture with the Argentina Government owned Industrias Kaiser Argentina (IKA) continued to build cars through 1977 when Renault took over.

Under the name "Willys Motors", the Jeep-based truck line continued in the United States including the CJ (Civilian Jeep) Series, all steel Willys Jeep Wagon (station wagon) and Jeep Forward Control FC-150 and FC-170 models that were introduced in 1957. In 1962, Willys introduced the Jeep Wagoneer as a 1963 model to replace the 1940s-style Jeep station wagons. Designed by industrial designer Brooks Stevens, the Wagoneer (later known as the Grand Wagoneer) would remain in production with the major architecture totally unchanged until 1991, and is credited with being the first true American sport utility vehicle (SUV). Also, in 1962, The original Jeep Gladiator Full-sized pickup truck was introduced to replace the old Willys Jeep Truck.[1]

As part of a general push to place all of their corporate holdings under the Kaiser name, in 1963, the company changed the name of Willys Motors to Kaiser Jeep Corporation.