The author, John Marek, is a writer and CEO of the Anson Economic Development Partnership.

In 2025, Volkswagen will begin selling a new electric vehicle roughly based on the old International Harvester (IH) Scout. In reality, the “New Scout” will have little in common with its  famous namesake, except the iconic script badge and its somewhat boxy shape. The last IH produced Scout rolled off the assembly line in Ft. Wayne, Ind., where my wife’s father worked, in 1980. IH’s discontinuation of the Scout has always been a bit of a head-scratcher.  SUVs surged in popularity in the mid-80s, just after IH exited the market, and there is a good chance that if they had stuck it out for a few more years, they might still be a significant manufacturer of those vehicles. Interestingly, it wasn’t the first time IH had abandoned a lucrative product line just as it was taking off.  

Most people today think of IH as a farm equipment manufacturer, and many recall the Scout  (and its big brother, the Travelall), but fewer people remember it also ventured into the branded home appliance market in the 1940s.  

The origins of IH’s appliance business can actually be traced back to the 1920s when the company began producing refrigerators under a contract with Frigidaire. However, it wasn’t  until after World War II that the company really began to expand its appliance business. In the  post-war economic boom, demand for consumer goods skyrocketed, and IH saw an  opportunity to capitalize on this by expanding its line of home appliances. 

Post WWII, farm equipment sales were declining, and IH was looking for ways to make up for  the lost sales. They believed their reputation for quality and durability would give them an 

advantage in the home appliance market, and they would be able to use their existing manufacturing facilities and sales network to produce and market home appliances. 

IH’s entry into the home appliance market was initially successful. They created a fictional character, Irma Harding (get it, I.H.), as the “face” of their appliance product line. She was the  embodiment of an all-American housewife who dispensed cooking and cleaning tips and touted her IH appliances. The company rather infamously advertised their appliances as  “femineered.” Obviously a strategy that wouldn’t fly today, but an effective campaign at the time. The company’s products were popular, especially in rural areas, and IH was able to  capture a respectable market share. However, their success was short-lived. The company faced stiff competition from manufacturers such as General Electric and Whirlpool, and its  products were generally more expensive than other brands and were often not as stylish or reliable. 

When the company began losing money on its home appliance business in the late 1950s, it abandoned the product line. Ultimately, IH’s decision to leave the market was a significant  setback for the company, damaging its reputation and resulting in a major reset of its corporate structure and decision-making.  

In the years since IH left the home appliance market, the company has recovered and is now a leading manufacturer of farm equipment. However, the company’s decision to enter the home appliance market and then abandon it is still a cautionary tale for businesses considering entering new markets.