Combines Case buys IHIJ

[diesel]

Here's a radically different take on the situation. Case would have been much better off had Tenneco left International Harvester to die! IH did nothing to help Case. Contrary to popular myth on the internet, Case (under Tennaco) was doing OK in the early '80's before IH entered the picture. In reference to Tennaco buying IH, you say "This was seen by management as a way to make the Case operation profitable." While Tennaco's intent may have been to increase profit, history paints a different picture. Check out the link at the bottom and look at the Case history from the Casecorp website. Especially look through the 1980's. Gaining market share every year since 1973, JI Case was the strongest it had ever been in 1984. The company was still turning a profit even in a depressed agricultural economy. In 1984 Case was hardly a company whose heyday had came and went a long time ago. Now, financially, nothing is mentioned in the history about 1985 and 1986, but I'm sure you can guess what it was like. In 1987, the losses were 253 million. Now lets see, Case turning a marginal profit in a depressed economy while gaining market share before IH enters picture. Afterward, CaseIH struggles to show profit, sometimes showing huge losses until roughly 1993. (No wonder Tennaco wanted out) IH product was and is a highly competitive product, as good as any on the market, but unfortunately, IH top-heavy management, union strangled factories, and financial struggles came with the product line that Tennaco purchased. This is exactly why several "restructuring" moves were required before CaseIH began to consistently show the potential to be profitable after 1993. I guess my point is this, Case did not need to be saved by IH. It is clear that IH needed saved by anyone with money. Tennaco had money. When Tennaco purchased IH, they essentially added the IH ag to the Case industrial, in the process shelving the Case ag (tractor). On paper, it was a good fit, (think about it, not much overlap between the companies, plus the Case loyal get ag products that had been missing in the line for some time) but the move hit the JI Case product line pretty hard. Today, Case still lives, it is an excellent backhoe, but, it is conceivable (although not real likely) that under Tennaco, a modern (2001) version of the 1984 Case line of tractors, backhoes, and etc. could still be in production today had IH not been purchased by Tennaco. I know others will disagree, but I for one see a picture of the mid 1980's that shows IH being the sole beneficiary of the Tennaco purchase while JI Case, Tennaco, and farmers all lose.

 

[J_I__Case_Man]

Well put. I'm sure if you looked at how the purchase was completed, the check was cut from J.I. Case company in Racine. The only thing that Case could have achieved through this purchase is a better dealer network. To suggest that Case had nothing to do with this purchase is just silly. I'm from a former all IH farm (yes, IH truly went out of the farme eq. business in 1984) and by looking at how dated their products and how sleazy the engineering was getting in the late 70's and early 80's, they could not have survived on their own. Case could as was!

 

[dakota]

If you look at Europe you will find that through IH CASE finally won a stronghold in the European market. In the late 70s and early 80s IH tractors for example were the n1 selling brand in Germany before Fendt took over the market. Fendt developed technologies way faster from then on. CASE was pretty much unknown before they bought IH. And the axial flow combines revolutionized the threshing technology until today. Or why else did JD finally adopt this ideaIJ I truly wish CIH would be in a better financial shape to be able to develop new competitiv combines faster. JD is getting way to arrogant (we run four STS).

 

[KP1360]

Don't forget that it was CASE that initiated the relationship with Cummins which produced the CDC engines (starting in 1980-1983) which later powered all the magnums and MX, and Combines (Steiger was already leaning toward all Cummins at this point). I think this played a major role in the comeback of the red tractor line. So even before IH was brought into the Tenneco organization, Case was getting ready to "bring it on"! Yes, CASE definitely needed a combine, and the axial flow was gold at the time, so that shored up a decent product line for Tenneco. Tractor-wise, I think CASE had the edge, overall, IH had the right color for marketing.

 

[binder_man]

First of all CASE CORP. was purchased by TENNECO in 1968. IH joined into a cash merger with TENNECO in late 1984. The only thing in the CASE IH AG line that is CASE is the MAXXUM tractor, and it's a great deal DAVID BROWN. The AXIAl - FlOW combine IS 100% IH. The MAGNUM tractor is almost 100% IH. You can look at the rear end and housings and tell that. The PTO housings and cluthes are even old IH clutches. One of the reasons that IH got into money problems in the 80's is that very tractor. IH had already developed a new 18 speed full power shift transmisson that was going to go into the next IH tractor after the 50 series. We were all going to see a tractor from IH that was the MAGNUM then IH ran into financial problems. IH had the products and still does, TENNECO had the money. THAT'S WHAT REAllY HAPPENED!!!!!!!!!!!!!!