International Harvester: A Historical Overview of the Iconic American Manufacturer
International Harvester, often abbreviated as IHC, IH, or simply International, stands as an iconic American manufacturer that played a pivotal role in shaping the agricultural, automotive, and industrial landscape of the United States and beyond. Founded in 1902, its journey spans over eight decades until it evolved into Navistar International Corporation. In this comprehensive overview, we delve into the fascinating history of International Harvester, highlighting its major milestones and contributions.
Founding and Early Years
The roots of International Harvester trace back to the 1830s when Cyrus Hall McCormick, a Virginia inventor, patented a revolutionary horse-drawn reaper in 1834. In 1847, Cyrus and his brother, Leander J. McCormick, moved to Chicago to be closer to the thriving Midwestern grain fields. They founded the McCormick Harvesting Machine Company, which became the cornerstone of the future International Harvester.
The reaper’s success was partly due to innovative business practices and the burgeoning railroad network, which enabled the distribution of their products to distant territories. However, it’s worth noting that Cyrus McCormick’s vehement opposition to organized labor led to the Haymarket affair in 1884, a significant labor event in U.S. history.
The Merger and Formation of International Harvester
In 1902, the McCormick Harvesting Machine Company merged with the Deering Harvester Company and three smaller agricultural equipment manufacturers: Milwaukee, Plano, and Warder, Bushnell, and Glessner (known for the Champion brand). This merger was orchestrated with financial support from J. P. Morgan and led to the creation of the International Harvester Company. Valued at $150 million, the newly formed company became a giant in the industry.
One significant acquisition in 1919 was the Parlin and Orendorff factory in Canton, Illinois, which excelled in plow manufacturing and was renamed Canton Works. International Harvester was a major client of Product Miniature Company during this era.
Sustained Success and Innovation
Throughout its existence, International Harvester achieved remarkable success in various sectors, including agricultural machinery and tractors. In 1924, the company introduced the Farmall, a smaller, versatile tractor that appealed to American family farmers. The Farmall’s popularity grew rapidly, making it a leader in the emerging row-crop tractor segment.
During World War II, International Harvester contributed significantly to the war effort by producing torpedoes, artillery systems, artillery shells, bulldozers, and truck engines. The company’s diversified portfolio allowed it to pivot effectively during wartime.
In the 1960s and 1970s, IH faced tough competition and increased production costs, which included labor and government-imposed environmental and safety regulations. While sales remained strong, profit margins were slim, prompting a change in leadership in 1979 with the appointment of CEO Archie McCardell.
Challenges and Transformation
Archie McCardell’s tenure aimed at improving profit margins and reducing costs, which led to the termination of unprofitable lines and curtailed factory production. Unfortunately, a labor strike in 1979 further strained the company’s finances, costing nearly $600 million. By 1981, International Harvester faced its lowest financial point.
The company began selling off divisions to stay afloat, starting with the construction division’s sale to Dresser Industries in 1982. In 1984, IH finalized a deal to sell the farm equipment division to Tenneco’s subsidiary Case Corporation, giving rise to Case IH. The transformation continued as tractor production ceased in 1985, and the company rebranded as Navistar International Corporation, focusing solely on trucks and engines.
Legacy and Impact
Despite the challenges and transformations, International Harvester’s legacy lives on in the hearts of enthusiasts and those who remember its significant contributions. The brand’s Farmall tractors, iconic Scout and Travelall vehicles, and a wide range of agricultural equipment remain influential in the agricultural community.
In Conclusion, International Harvester’s history is a testament to American innovation and resilience. From its humble beginnings in the 1830s to its transformation into Navistar International Corporation, it left an indelible mark on multiple industries. The legacy of International Harvester continues to be celebrated by devoted enthusiasts, reminding us of the enduring impact of this iconic American manufacturer.