The Randall 401 Gremlin was a dealer car. Not sure what the author of that article meant when he stated AMC gave "permission" to install 401's. These were simply crate engines. The 304 and 401 were the same dimensionally. Nothing unusual here, Royal Pontiac (and other Pontiac dealerships) were swapping 421's for 389's way back in 1964, and you couldn't tell which was which by popping the hood.
Now if AMC sent 30 crate 401 engines, with specific VIN's, and instructions for Randall AMC to remove the 304's, install the 401's, then send the 304's back to the plant, THEN it's an official authorization by AMC.
Pretty scary putting a 401 into a Gremlin. Putting nearly 400 hp into a poorly made little carnival ride of a compact car, with the build quality of a shopping cart, is not something I'd want to be sitting in while going through the traps at over 100 mph.
Randall AMC most likely had to discontinue these cars due to the fact that the Feds clamped down on dealer installed engine transplants at that time. Dealership engine swaps were very popular in the 1971-1973 era. Fantastic performance, cheap cars, and low insurance premiums.
Jim Wangers (of Pontiac fame) was the one that the Feds made an example of when he began placing crate LS7's into Chevy Novas at his Milwaukee-based Jim Wangers Chevrolet dealership. With his high profile name, the Feds decided to make an example of him, and suddenly Baldwin-Motion, and dealers like Randall AMC, quickly ceased their programs in fear of sustaining very hefty fines for violating Federal emissions standards.
Personally, I'd rather have a 427 or 454 Motion Vega.