JIM asked, "Do you think if they had focused on their core products more like FARMALL and E Moline produced, they could have survived the 80's?"
Oh definitely YES. But they should have started deciding if they wanted to be an ag equipment company, or truck company, or construction equipment company WAY back in the late 1940's. The way the company was set-up organizationally just didn't allow them to concentrate enough on ALL those businesses. Due to lack of engineering resources, and needed cash for product improvements, all their product lines grew old compared to the competition.
As things progressed into the 50's, when they started loosing market share to JD, and into the 1960's, they could have still survived the coming ag down-turn of the early 1980's. But by 1979, when they had their biggest sales year EVER, it was WAY too late.
IH wanted to be bigger than CAT, bigger than Massey-Ferguson, JD, Allis, White Farm, etc, plus be the biggest medium & heavy truck company.
I heard a very interesting comment one day at FARMALL made by the #3 Quality person @ FARMALL. He said that IH "should concentrate on making the Best ag tractor they possibly could... just like Allis-Chalmers." My buddy is an Allis fan as much as I'm an IH fan, I was looking at his copy of C.H.Wendell's book on Allis-Chalmers, very similar to 150 Years of IHC. Now Allis was into as many or more different product lines than IH ever was. 20-20 hind-sight says that maybe Allis wasn't a good role model either, but in the mid-1970's they spent a BUNCH of cash making much needed improvements to their ag tractors. That was something IH should have started doing back in the 1950's & 1960's.
The 706/806 came out just in the nick of time to replace the 460/560's. But they should have released something like the 5X88's around 1970/'72. Meaning no 66 or 86-series. Then around 1975/'77, instead of releasing the 86-series, they could have released the full power-shift version of the 5X88's. Back in '79, IH Melrose Pk Plant was maxed out on production capability of the 400-series engines. Farmall could have used the 530 and later 570 CID engines, and as tractor tire & FWA technology advanced, IH could have made even bigger displacement engines for ag tractors. The IH 800 CID V8 was a power-house in the big Stieger built 4WD's, but had a real short fuse, needed to run several hundred RPM slower, needed bigger intake air filters, and the frt & rear transmission & final drives needed more beef, they were basically 1066 & 1466 rearends. A big "DT-700" or '750 would have been nice along with a power-shift since the big 4WD's were getting so popular.
When I flip pages through Wendell's 150 Yrs of IHC, and see some of the ridiculous low production numbers on some of IH's equipment, I wonder why they decided they needed to make those items at all. I know why they did, Marketing wanted to be a "one-stop shop" for all of the farmer's equipment needs, trucks, tractors, combines, planters, plows, even milking machines, milk coolers, etc. Refridgerators, freezers, even window air conditioners. AND IH should have learned how unprofitable that was when they closed the Evansville, Ind. plant back in 1956 and sold it to Whirlpool. And in most cases, those low production items shared tooling & processes with other high volume items, but still, the amount of engineering time needed to design, modify, test, and then build them was something IH could not afford. Back in 1952, FARMALL had just finished building over 290,00 variations of the M, and over 390,000 H's in the last 13 yrs, their biggest problem was building enough Super M's to meet demand, they were making 350/day @ FARMALL and shipping parts for 25/day more to LVL, why couldn't they have spent a little money on something they were making, selling, and obviously making LOTS of money on. Yes, IH did spend some money on the M, like the Super M-TA, 400, 450, but if the 706/806 had come out in 1958 instead of the 560, who in their right mind would have bought a new 730?!?!