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Feature Tractor

This year the feature tractor brand is "International Harvester." The company was formed in 1902 when 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.  The most important motivation for the merger was elimination of competition to increase profits.  Banker J. P. Morgan provided the financing.  The architect of the merger was George W. Perkins, one of the Morgan executives who Cyrus McCormick described as the "most brilliant negotiator he had ever known.”  The new company was valued at $150 million.  In 1919, IH bought the Parlin and Orendorff factory in Canton, Illinois, a leader in plow manufacturing, renaming it Canton Works. International Harvester was one of the main clients of Product Miniature Company.

     In 1926, IH's Farmall Works built a new plant in Rock Island, Illinois. By 1930, the 100,000th Farmall was produced. IH next set their sights on introducing a true 'general-purpose' tractor to satisfy the needs of the average American family farmer. The resulting 'letter' series of Raymond Loewy-designed Farmall tractors in 1939 proved a huge success. IH dominated the market through the 1950s despite stiff competition from Ford, Allis Chalmers, Massey Ferguson and John Deere. IH ranked 33rd among United States corporations in the value of World War II production contracts. Different plants of the corporation produced torpedoes and their components, artillery systems and their parts, artillery shells and some civilian products for the military like bulldozers and truck engines. 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. It acquired the Metropolitan Body Company of Bridgeport, Connecticut, in 1948. The commercially successful Metro line of forward control vans and trucks were produced here from 1938 until 1964. In 1970, Pacific Trucks was purchased. In 1974, the five-millionth IHC tractor, a 1066, was produced at the Rock Island Farmall plant.Throughout the 1960s and 1970s, despite good sales, IH's profit margins remained slim. The continual addition of unrelated business lines created a somewhat unwieldy corporate organization. Overly conservative management and a rigid policy of in-house promotion tended to stifle new management strategies and technical innovation. IH faced strong competition and increased production costs, primarily due to labor and government-imposed environmental and safety regulations.

The company's Downfall

     In 1977, International Harvester named Archie McCardell as its new CEO, who embarked on a strategy to drastically cut costs and improve profit margins. Unprofitable lines were terminated, and factory production was scaled back, resulting in profits reaching their highest levels in ten years by the end of the year, although cash reserves remained low. This strategy led to growing dissatisfaction among union members. In anticipation of labor disputes, IH braced for a strike. On November 1, 1979, just as the company announced a $1.8 million bonus for McCardell, the United Auto Workers called a strike the following day. The protracted strike eventually cost the company almost $600 million, equivalent to $2.5 billion in 2023. 
     By 1981, IH's finances were at their lowest point ever, and investors had lost faith in the company and its management. In 1982, Louis W. Menk, who was a former president and CEO of the Burlington Northern Railroad, was appointed as IH's new chairman and CEO. Under Menk's guidance, IH went through a twenty-month reorganization process, and he hired a new management team. Menk also ensured that IH made necessary cutbacks, and it involved the sale of the company's Payline division of construction equipment to Dresser Industries. Further assets were sold to Tenneco, Inc., in 1984. 
     Following the merger, tractor production at Farmall Works ceased in 1985. Production of the new Case IH tractors moved to J.I. Case in Racine, Wisconsin. Production of IH Axial-Flow combines continued at the East Moline, Illinois, factory. The Memphis Works plant was closed. The truck and engine divisions remained and in 1986, Harvester changed the corporate name to Navistar International Corporation, having sold the International Harvester name to Tenneco. Navistar International Corporation continues to manufacture medium- and heavy-duty trucks, school buses, and engines under the International brand name.
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