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Tis' the season to be nostalgic

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ajl View Drop Down
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    Posted: 28 Dec 2019 at 12:15pm
This topic has been hashed to death i'm am sure many times but lets do it again.   Just watched a video on big tractor power about top ten classic combines.  One was an 80's Gleaner L3 and the other a NI 800 Uni husker.   Both these unit featured AC 426 power.  While it was struggling I'm sure,  equipment volumes during the 80's were not that bad and likely more units sold many years during the 80's as was in 2018 and 19.  I am looking for a tractor and 1980's units are all that is in my price range.   My 2019 would fit right into the 80's in that it sucked just that up here in western canuckistan, smaller farmers do not get any government support unlike the 80's.   By the mid 80's AC had an excellent product, sold some components to other equipment mfg's like the engines to NI and transmissions to Stieger, so what exactly put them out of business?  Maybe Stieger wan not able to pay the bill.  Was it actually a debt overhang from the 70's the parent company had and they decided to take KHD's money while it was available?    Seems to me that, given the amount of 80's equipment still out there AC farm equipment would have been quite a viable business.   Too bad KHD screwed it up.    
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Ray54 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Ray54 Quote  Post ReplyReply Direct Link To This Post Posted: 28 Dec 2019 at 2:09pm
i am not remebering details,but someone will. AC had other business than ag equipment,I believe a small electrical products division still operated several years ago. But AC had big,big money in a government prodject the governmnt baled on.
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SteveM C/IL View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SteveM C/IL Quote  Post ReplyReply Direct Link To This Post Posted: 28 Dec 2019 at 3:15pm
Coal gasification wasn't it? Ag and construction were not the fault,they were the victoms.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote exSW Quote  Post ReplyReply Direct Link To This Post Posted: 28 Dec 2019 at 3:21pm
Farm Equipment revenue wasn't enough to prop up the rest of the company. But Duetz really screwed the pooch. Handed market share to Deere and CIH.
Learning AC...slowly
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Bill Long View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Bill Long Quote  Post ReplyReply Direct Link To This Post Posted: 28 Dec 2019 at 8:14pm
Gentlemen,  I have said this before but I agree with the writer of "The Plow Peddler".  It was the strike right after WWII that caused the eventual downfall of Allis Chalmers.  It was a period when the farmers HAD CASH.  They were well paid for having exceptional crops during WWII but could not get new equipment.  Believe me we could have sold anything.  In 1946 we got 6 yes SIX tractors.  Most of them C's.  When the strike was over the opportunity was over and Allis Chalmers never recovered.  In fact up until the development of the D series tractors in the late 50's we only got one new tractor - the G.  The others were upgrades from existing tractors.  WD and WD-45  from the WC, CA from the C, there was no replacement for the B.  AC did not have the development money. 
It has been stated that the strike was communist inspired, and was the attempt of the communists to severely damage a major United States Company.  In my mind they succeeded.
You will be exposed to other reasons but to me that was the root cause.
Good Luck!
Bill Long
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Post Options Post Options   Thanks (0) Thanks(0)   Quote HD6GTOM Quote  Post ReplyReply Direct Link To This Post Posted: 28 Dec 2019 at 8:45pm
Bill. I agree with you 100%.
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Unit3 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Unit3 Quote  Post ReplyReply Direct Link To This Post Posted: 28 Dec 2019 at 10:11pm
AJL, topics like this have been talked about before, and they will again, and again, and yet again. Let's face it, we all hold that same warm and fuzzy feeling for the orange equipment of yesteryear. I just came in from the shed where many are kept. Then, I log on here to hear others tell their stories of their tractors. It is in the blood. I don't care how many time we ask about rattle can PO1, or AC's in the movies, or my favorite, "Look what followed me home". I love them all.
2-8070FWA PS/8050PS/7080/7045PS/200/D15-II/2-WD45/WD/3-WC/UC/C
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SteveM C/IL Quote  Post ReplyReply Direct Link To This Post Posted: 28 Dec 2019 at 11:38pm
Bill is probably correct. I had forgot that chapter.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DougG Quote  Post ReplyReply Direct Link To This Post Posted: 29 Dec 2019 at 12:41pm
I'd say Bills assumption is a leading factor to AC, s demise, but there's a Lot of years in between then and 85,, in my opinion Allis management thought the same as IH - we are to big to fail- and they were doing ok till the world markets were absorbed with foreign machines,, the dollar / money markets changed drastically and Allis was slow to flow with change,, and poorly managed at the end- trying things that looked good 10 years before - then put in production 10 years later- Kiln N Gas ,, was a good idea butthat ship had sailed and at the bottom of the tank! Then with interest so high , low farm prices,, for a few years, it all came crashing down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Ted J Quote  Post ReplyReply Direct Link To This Post Posted: 29 Dec 2019 at 3:44pm
Yep, I agree with Bill too.  My grandfather worked for Allis here in La Crosse and he was madder than a hornet about the strike.  He had hated unions ever since.  He retired from Allis but he never talked about it.  If you asked, he'd give you this look and then changed the subject.  The only thing he had after 40 some years, I should say the only thing he kept was his button with his number on it.  He was really bitter.
"Allis-Express"
19?? WC / 1941 C / 1952 CA / 1956 WD45 / 1957 WD45 / 1958 D-17
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DiyDave Quote  Post ReplyReply Direct Link To This Post Posted: 29 Dec 2019 at 5:46pm
If you can, get a copy of the book, in the link below.  It describes how the commie influenced strike, in the '40's kept AC in 3rd place throughout the '50's and '60's...

Source: Babylon Bee. Sponsored by BRAWNDO, its got what you need!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tbran Quote  Post ReplyReply Direct Link To This Post Posted: 29 Dec 2019 at 10:58pm
The 'strike' with all it's communist influence did put AC behind others. The products could have caught up and in some areas did.  The reason AC did not survive the 80's was a lack of well financed , dependent on AC , dealer organization; add to that the finance arm, Allis Chalmers Credit Corp , had dealers sign 100 % recourse on sales contracts.  When the farmers went down in the 80's, repo's went wild and took out the dealers' reserve and then the dealers.   Deere dealers were mandated to return retained earnings into their businesses and became more numerous and financed and dependent on Deere to the point of being almost company stores. AC tried this with Action 80 and IH with the XL program, but it was too late - dealers were going broke and only the strong were surviving. Gleaner was profitable - and wanted to go independent - Ac would not allow this - and it was a mistake.  The small market share resulted in an engine division that inflated the cost of the products - it would have been much cheaper to put cummins in units than the AC engines.  Anyway the times were tough and the decision was made  by David C Scott who was in Washington looking for business when approached by Jimmy Carter  to go all in on the Kiln Gas project to produce gas from coal - all monies went to that project and when it failed - the BOD thew in the towel and tried to salvage what could be salvaged - the divisions were put on the auction block.  KHD bought it then Bob Ratliff and others - one AC guy -bought it back.  It was AC under another name - they then bought other companies and the company has evolved into a world wide company that, if you take out it's construction sales,  is equal to CaseIH in world wide sales.   All from the roots of AC and other divisions who could not survive on their own - but have flourished together. Bad management - a company with divisions that kept robbing peter to pay paul - and an all in for a magic bullet was the demise of the name ... some of the remnants live on - under other names.  The longer the time, the less the name will be remembered.  It is life in a changing world. We tell those who ask what AGCO stands for - it was Allis Gleaner....  and still has a few old AC guys employed.   I shook hands with one, the man who wrote op mans for AC in Orlando earlier this month.
When told "it's not the money,it's the principle", remember, it's always the money..
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Post Options Post Options   Thanks (0) Thanks(0)   Quote AC7060IL Quote  Post ReplyReply Direct Link To This Post Posted: 30 Dec 2019 at 5:47am
Originally posted by Bill Long Bill Long wrote:

Gentlemen,  I have said this before but I agree with the writer of "The Plow Peddler".  It was the strike right after WWII that caused the eventual downfall of Allis Chalmers.  It was a period when the farmers HAD CASH.  They were well paid for having exceptional crops during WWII but could not get new equipment.  Believe me we could have sold anything.  In 1946 we got 6 yes SIX tractors.  Most of them C's.  When the strike was over the opportunity was over and Allis Chalmers never recovered.  In fact up until the development of the D series tractors in the late 50's we only got one new tractor - the G.  The others were upgrades from existing tractors.  WD and WD-45  from the WC, CA from the C, there was no replacement for the B.  AC did not have the development money. 
It has been stated that the strike was communist inspired, and was the attempt of the communists to severely damage a major United States Company.  In my mind they succeeded.
You will be exposed to other reasons but to me that was the root cause.
Good Luck!
Bill Long
Interesting. Thanks for sharing. I found this lengthy article (16 pages) that highlights details about the strike. http://images.library.wisc.edu/WI/EFacs/transactions/WT1988/reference/wi.wt1988.jlstockley.pdf
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