Subject category:
Ethics and Social Responsibility
Published by:
Harvard Kennedy School
Length: 16 pages
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Abstract
In 1982, faced with serious financial difficulties, International Harvester recognized a need to reduce costs at their Fort Wayne, Indiana and Springfield, Ohio truck assembly operations. That same year, the firm began negotiations with both cities, and before long the talks escalated into a bidding war between the two communities. The case focuses on Fort Wayne's efforts to keep its Harvester plant open by offering the company financial assistance. It outlines what was known of Harvester's financial difficulties and then traces Fort Wayne's negotiations with both Harvester and the Indiana state government. In the end, Harvester decided to consolidate its domestic trucking operations in Springfield - which had a more modern facility - and eliminate operations in Fort Wayne.
About
Abstract
In 1982, faced with serious financial difficulties, International Harvester recognized a need to reduce costs at their Fort Wayne, Indiana and Springfield, Ohio truck assembly operations. That same year, the firm began negotiations with both cities, and before long the talks escalated into a bidding war between the two communities. The case focuses on Fort Wayne's efforts to keep its Harvester plant open by offering the company financial assistance. It outlines what was known of Harvester's financial difficulties and then traces Fort Wayne's negotiations with both Harvester and the Indiana state government. In the end, Harvester decided to consolidate its domestic trucking operations in Springfield - which had a more modern facility - and eliminate operations in Fort Wayne.