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#1
12-02-2014, 08:39 PM
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Why The Demise of IH Ag Division?
After reading Oscar Will’s book “The 50 Years of Cub Cadet”, I am mystified why more information wasn’t provided regarding the BIGGEST, EARTH SHAKING change to the most dominant player in the entire agricultural equipment sector of the American market – which I’d like to understand. I am aware that the economy was awful in the late 70’s, with high loan rates, farm prices were down with increasing consolidation taking place resulting in equipment sales plummeting. But they were also plummeting for Deere, Massey Ferguson, Allis Chambers, Gleaner, White, Case, Sperry New Holland, etc. I know IH had a recall problem with the 460, 560, and 660 tractors – and lost some market share – but they were still the MASSIVE, dominant, diversified, conglomerate powerhouse as ever - always three step ahead of everyone else. So why, even if IH had revenue issues, why would they sell the foundation, The Soul, of the entire corporation (Ag Division) when they could have sold off other lines of business such as their Consumer Division, Construction Equipment Division and/or their Truck/Diesel Engine Division? Why?
My grandfather who farmed 1+ sections in Leoti, Kansas (pop. -2000) from the 50’s-70’s (wheat/corn/milo) only used IH Farmall equipment. As a 12 year old kid in the early 70’s, I can still remember the joy, looking at his Ag magazines, gazing with delight at IH ads featuring a BIG RED 666 Turbo with HUGE wheels and a white enclosed cab– with the tagline on the bottom: International Harvester. We help you feed the world. ccguy 1994-1440 1976-#4 
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Cub Cadet is a premium line of outdoor power equipment, established in 1961 as part of International Harvester. During the 1960s, IH initiated an entirely new line of lawn and garden equipment aimed at the owners rural homes with large yards and private gardens. There were a wide variety of Cub Cadet branded and after-market attachments available; including mowers, blades, snow blowers, front loaders, plows, carts, etc. Cub Cadet advertising at that time harped on their thorough testing by "boys - acknowledged by many as the world's worst destructive force!". Cub Cadets became known for their dependability and rugged construction.
MTD Products, Inc. of Cleveland, Ohio purchased the Cub Cadet brand from International Harvester in 1981. Cub Cadet was held as a wholly owned subsidiary for many years following this acquisition, which allowed them to operate independently. Recently, MTD has taken a more aggressive role and integrated Cub Cadet into its other lines of power equipment.
This website and forum are not affiliated with or sponsored by MTD Products Inc, which owns the CUB CADET trademarks. It is not an official MTD Products Inc, website, and MTD Products Inc, is not responsible for any of its content. The official MTD Products Inc, website can be found at: http://www.mtdproducts.com. The information and opinions expressed on this website are the responsibility of the website's owner and/or it's members, and do not represent the opinions of MTD Products Inc. IH, INTERNATIONAL HARVESTER are registered trademark of CNH America LLC
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