In 1979 IH named a new CEO, Archie McCardell, who was determined to improve profit margins and drastically cut costs. Unprofitable lines were terminated and factory production was curtailed.
By the end of the year, profits were at their highest levels in 10 years but cash reserves were still low. Union members became increasingly irate over these measures and in the spring of 1979, IH prepared to face a strike. On November 1, IH announced McCardell had received a $1.8 million bonus. After he pressed for more concessions from the United Auto Workers, a strike was called on November 2, 1979.
[10] By the time it ended, the strike had cost the company almost $600 million (over $1
billion today).
By 1981, the company's finances were at their lowest point ever. The company sold its Payline division of construction equipment to
Dresser Industries in 1982. Further assets were sold to Tenneco, Inc., in 1984.