In the spring of 1981, the 86-series tractors were replaced by the 88-series. The 886 was replaced by the 3288 and the 986 by the 3688. A year later, two small models were added: the 3088 and 3488 Hydro. The 3088 series models had 5.9- and 7.1-liter naturally aspirated six-cylinder engines and 16 gears, utilizing a 2-speed power shift.

In the spring of 1981, the larger 1086, 1486, and 1586 models were replaced by the 5088, 5288, and 5488 models. The smallest of these had a turbocharged 7.1-liter engine, while the larger ones had 7.6-liter engines. The 205-horsepower 5488 had an intercooler. The 5088 series had a new 18+6 transmission, with a 2-speed power shift controlled by a sideways movement of the basic gear lever (see picture below). The gear spacing was very even. The cooling air circulation was quite unusual: air was taken from above the engine hood and blown forward through the grille.

In the new cab, the controls were centralized on the right. Noise level was 77.5–78.5 decibels. In Europe, the tractors were sold as four-wheel drive. Hydraulic output was 106 liters per minute, and the system was load-sensing. The successor to the 5088 models was supposed to be introduced in 1985, but after Tenneco bought IH, development was merged with Case, and in the Magnume series IH was essentially just the cab.

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