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In 1960, the U.S. government uncovered an attempt to form a cartel in the heavy electric equipment industry. It charged 13 companies, including the largest in the industry (Westinghouse, General Electric, and Allis-Chalmers), with price fixing and bid rigging.[32] Most feigned innocence, but Allis-Chalmers pleaded guilty. Although one motive for the forming of cartels is so that amply profitable firms can try to become obscenely profitable, it did not apply in this instance, according to Buescher; rather, his view of the attempt at a heavy-electrical cartel was that it was a desperate (and foolish) attempt to turn red ink to black ink among fierce competition.[33]

The D series continued to be successful in the 1960s. The factory-installed turbocharger on the D19 was the first in the industry. It was soon followed by the 190 and the 190 XT, which was a direct competitor for the John Deere Model 4020 with 98 horsepower (factory rating).

In 1965, Allis-Chalmers acquired Simplicity for its line of lawn and garden equipment. Also in that year, the nuclear reactor SAFARI-1, a research reactor built by Allis-Chalmers, went into operation.[34]

In the 1960s, the farm equipment, construction equipment, and heavy electrical industries were not as profitable for Allis-Chalmers as they had been in the 1930s through 1950s. Reasonable prosperity continued in the farm equipment line, but the economics of all the industries shifted toward greater uncertainty and brittler success for firms that didn't become number one or two in a field. Allis-Chalmers was often number three or four, as Deere and International Harvester led in farm machinery, Caterpillar and Case led in construction, and Westinghouse and General Electric led in heavy electric markets. In the late 1960s, a trend of conglomeration flared, as mega-conglomerates like Ling-Temco-Vought, Gulf+Western, and White Consolidated Industries went on buying sprees. Several takeover attempts by those firms were made on Allis-Chalmers. It was during the same era and business climate that Tenneco acquired Case.

In 1974, Allis-Chalmers's construction equipment business was reorganized into a joint venture with Fiat SpA,[2][35] which bought a 65% majority stake at the outset.[35] The new company was called Fiat-Allis.

In May 1975, the company closed its 20-acre, 78-year-old Pittsburgh North Side factory that employed close to 1,100 full-time and produced both distribution and instrument control transformers.[36][37]

In 1977, to compete with Kubota in compact diesel tractors, Allis-Chalmers began importing Hinomoto tractors with Toyosha diesel engines from Japan. They were rebadged with the Allis-Chalmers brand for U.S. sales.

In 1978, a joint venture with Siemens, Siemens-Allis, was formed, supplying electrical control equipment.
     
 
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