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After he pressed for more concessions from the United Auto Workers, a strike was called on November 2, 1979. On November 1, IH announced McCardell had received a $1.8 million bonus.
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Union members became increasingly irate over these measures and in the spring of 1979, IH prepared to face a strike. By the end of the year, profits were at their highest levels in 10 years but cash reserves were still low. Unprofitable lines were terminated and factory production was curtailed. In 1979 IH named a new CEO, Archie McCardell, who was determined to improve profit margins and drastically cut costs. In 1974 the 5 millionth International Harvester tractor, a 1066, was manufactured. IH faced strong competition and increased production costs, primarily due to labor and government-imposed environmental and safety regulations. Overly conservative management and a rigid policy of in-house promotion tended to stifle new management strategies and technical innovation. The continual addition of unrelated business lines created a somewhat unwieldy corporate organization. Throughout the 1960s and 1970s, despite good sales, IH's profit margins remained slim. In 1974, the five-millionth IHC tractor was produced at the Rock Island Farmall plant. The commercially successful Metro line of forward control vans and trucks were produced here from 1938 until 1964.
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It acquired the Metropolitan Body Company of Bridgeport, Connecticut, in 1948. In 1946 IH acquired a defense plant in Louisville, Kentucky, which was adapted for production of the Farmall A, B, and the new 340 tractors. IH ranked 33rd among United States corporations in the value of World War II production contracts. IH dominated the market through the 1950s despite stiff competition from Ford, Allis Chalmers, Massey Ferguson and John Deere.
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The resulting 'letter' series of Raymond Loewy-designed Farmall tractors in 1939 proved a huge success. IH next set their sights on introducing a true 'general-purpose' tractor to satisfy the needs of the average American family farmer. By 1930, the 100,000th Farmall was produced. In 1926, IH's Farmall Works built a new plant in Rock Island, Illinois. In 1919, IH bought the Parlin and Orendorff factory in Canton, Illinois, a leader in plow manufacturing, renaming it Canton Works.ġ939 advertisement for the International "Jungle Yacht" tractor-trailer, for Attilio Gatti's luxury scientific expedition in the Belgian Congo In 1902, the McCormick Harvesting Machine Company and Deering Harvester Company, along with three smaller agricultural equipment firms (Milwaukee Harvesting Machine Co., Plano Manufacturing Co., and Warder, Bushnell, and Glessner-manufacturers of Champion brand) merged to create the International Harvester Company. McCormick died in 1884 and his company passed to his son, Cyrus McCormick, Jr., whose antipathy and incompetence toward organized labor sparked the Haymarket affair, the origin of May Day as a labor holiday. He developed a vast support network to demonstrate field operations. Their products came onto the market just as the development of railroads offered wide distribution to distant territories. The reaper sold well, partially as a result of savvy and innovative business practices. McCormick, he moved to Chicago in 1847 to be closer to the Midwestern grain fields and founded the McCormick Harvesting Machine Company. The roots of International Harvester run to the 1830s, when Virginia inventor Cyrus Hall McCormick perfected his version of a horse-drawn reaper, which he field-demonstrated in 1831 and for which he received a patent in 1834. 3.3 Commercial trucks (Truck and Engine Division)Ĭyrus Hall McCormick patented an early mechanical reaper.2.2.3 Attachments: blades, buckets, rippers and compaction equipment.2.1.9 Brand names of the agriculture division.In 2020 Volkswagen agreed to fully purchase the remaining shares of Navistar.
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Throughout its existence International Harvester was headquartered in Chicago, Illinois. International became solely a truck and engine manufacturer and reorganized as Navistar International in 1986. The European division exists today as McCormick Tractors and is owned by ARGO SpA of Italy. In November 1984 IH finalized a deal with Tenneco to sell the farm equipment division to Tenneco's subsidiary Case Corporation, and the brand continues as Case IH which is owned by Fiat. The International Harvester legacy non-profits host some of the largest agriculture related events in the United States.įollowing years of financial and economic decline, International began selling its separate equipment divisions, starting with the sale of the construction division to Dresser Industries in 1982. Given its monumental importance to the building of rural communities the brand continues to have a massive cult following.