ga.prime":uuen8hrm said:
Thanks!
If IH would have dumped the appliances, NOT taken on Cat or even gotten itself into industrial equipment all together, and finally dumped it's steel mill all by about 1955 (1960 by the latest), IH would have been in a stronger position by the 1970's to deal with the issues that came at it by then end of that decade (the 560 fiasco aside for a minute). But this was typical IH culture: be everything to everybody. I cannot stress enough the drain that it's steel mill became. That Division was called "Wisconsin Steel", by the way. It is dealt with in great detail in Marsh's book, and really sheds a light on how Wisconsin Steel became a real 'albatross' for IH. One more thing - they were also into turbines (Solar) and lawn equipment (Cadet)!! Just illustrating further how spread out they were.
With funds freed up, the new STS transmission could have come out 10 years before it did. Not only that, but a much better cab design as well. IH had these on the drawing boards at the time, but there was never enough money to fully develop them and get them out 10 years earlier, as funds were spread thin because of all the money-hungry industries IH owned.
Speaking of the drain on IH, is the money they pumped into developing the rotary combine - let's not forget that one!! 100's of millions was spent on the technology, by the time it rolled out in 1977. It was very good technology and great engineering, but...... Not every farmer needs to buy a combine as you can get a custom outfit. But every farmer needs a tractor in some form. If IH would have focused on their tractors and left the rotary technology alone for a few more years, that would have helped too. Don't forget, JD did not jump on this (rotary design) very fast and did just that - they were smart and saw the bad BUSINESS DECISION that it was. Again, JD made very good business decisions and they saw the risk at the time in spending so much on combine technology (read: low production item that would take a long time to recover development and production costs) and kept to what they could sell lots of (read: tractors, as an example) and MAKE MONEY.
The IH engine division was very good, both at the US plant and in Europe (Germany in particular). VERY good engines, and second to none in my opinion. When the 400 series came out in 1971 in the 66 series, it was awesome. But when they came out with the 86 series (my favorite) and the 400 B series engine that was another leap in design. As I recall, they were able to slow the engine and get more HP out of it. Unheard of at the time. Not to mention how long they made that engine, that also found it's way into IH trucks and buses as the 444 and 466. When they gambled and went ahead with the 6.9L and the Ford deal, that was very good too.
The real money for IH was always the truck division. With a tractor every little piece IH had to design and then build itself. That means lots of investment dollars due to engineering, testing and making the machines that made the parts (read: expensive). With a truck, it was much easier: design the cab and fame, but put someone elses engine, transmission, front and rear ends, etc in them. There was a great profit margin with the truck Division, and Marsh also confirms this.
I was in college at the time the merger with Case took place. My parents did not survive the 1980's farm collapse, and we had IH red. When the merger took place I was shocked, and truly saddened with what happened to IH. I have a very soft spot for them, and find nice IH equipment for my hobby farm. Lots of IH still out there - they may not have been the best business people, but I really like IH equipment - very well built for the most part.
"if it ain't red, leave it in the shed"!!