IHC was eventually killed by three things. Its management wanted to branch out into too many products, and there were no new technological innovations to improve the rugged SUV.
In 1979, it employed a new CEO to streamline the business, and Archie McCardell did a great job of that, but not without reprieve. He cut several production lines, leading to many job cuts. Despite many people losing their jobs, the company gave McCardell a million-dollar bonus, which angered union members.
This led to a strike, which cost the company over $1 billion in today’s money.
Many of the company’s assets were sold, and the rest were put into a holding company called Navistar. Navistar eventually ended up under the ownership of Traton in 2021. Traton is basically the holding group for the commercial vehicle arm of the Volkswagen Group, and that’s how VW ended up with the Scout name, synonymous with the rugged utility vehicle.
