K-Line Stock

[Allen]

Now that Lionel has acquired K-line, will it be marketing the K-line LIRR Train Set? Also, what ever happened to their line of three-rail roadbed tracks and cars and trolleys for these tracks?

[brianel027]

Your guess is as good as anyone's. Under an agreement signed by Lionel with Sanda Kan (the Chinese manufacturer of nearly everyone's trains), Lionel will have produced a set dollar figure of former K-Line products that Lionel will then distribute and market.

Despite the news that Lionel has retained a few K-Line folks such as Nick Ladd, I think we can be sure than Lionel will put no more into the K-Line product line right now than is required by their agreement with Sanda Kan. This could change if Lionel were to actually acquire ownership of the previous K-Line tooling and dies. Then I think you wouold see quite a bit of incorporation of former K-Line products into the Lionel line up.

As it stands, Lionel will more than likely not put too much effort into a line of products that once competed with their products. And as we have already seen, the former K-Line products that are produced in the near future will more than likely have substantial price increases.

You could write Lionel a nice letter requesting consideration of the Long Island set. They certainly sold well for K-Line, and Lionel certainly would like to sell whatever products it produces and not have to blow them out.

[fifedog]

I'd like to see them get away from the K-line parctice of repackaging LEMAX products and marking them up 30% or more.  K-line really developed a lot of nice rolling stock in the past 5 years, and I can only hope that LIONEL will carry that banner as well...time will tell.

[GregM]

I think we can be sure than Lionel will put no more into the K-Line product line right now than is required by their agreement with Sanda Kan. This could change if Lionel were to actually acquire ownership of the previous K-Line tooling and dies. Then I think you wouold see quite a bit of incorporation of former K-Line products into the Lionel line up.

While I agree that should Lionel eventually own the K-Line tooling they would no doubt make more use of it, the reality is, right now Lionel is in fight for its very existence.  Too assume that Lionel would not make use of every tool at its disposal to insure a favorable outcome is questionable thinking at best. IMO.  If Lionel produces former K-Line products that hobbiest's purchase, then that money doesn't go to a competitor.  At this particular moment Lionel is busy on many fronts.  TMCC II, "The Lawsuits", bankruptcy, the KCC SD-70, along with integrating the large and varied K-Line product line into the Lionel product mix.  Lets just be patient for a while, time will tell whether K-Lionel will be a boom or a bust.

[brianel027]

"While I agree that should Lionel eventually own the K-Line tooling they would no doubt make more use of it, the reality is, right now Lionel is in fight for its very existence.  Too assume that Lionel would not make use of every tool at its disposal to insure a favorable outcome is questionable thinking at best."

Remember Greg, Lionel is basically paying a fee to have the K-Line products produced for them. Whether the profit margin is as good as it is on Lionel's very own products would be a determining factor, wouldn't you think? The price increases on the former K-Line products will also make them less attractive from at least a consumer bargain standpoint. Which over time should help diminish some of the excitement for at least these products.

Though it has temporarily faded a bit from being hot topic news, the final ruling on the major Lionel/MTH lawsuit - which should come in December or January - could significantly change everything. Should the ruling be against Lionel, it remains to be seen whether Wellspring will stand behind Lionel. And when it comes to court rulings, a recent scan of headlines proves anything is potentially possible.

The Legacy TMCC 2 system (or Cherry Vaniila TMCC as I sarcastically like to call it) has been developed outside of Lionel proper by Neil Young and Lou Kovach's company, Creative Trains. A smart move no doubt, to keep this technology out of the liability of a lawsuit loss. As ownership of the "Lionel" name is now also outside of the actual company for the same reason.

[GregM]

I had typed a long response then hit the wrong button and lost it.  Don't feel like typing it again. 

Curious, where does the information about Lionel name being owned by another company come from?  I read that Lionel, LLC owns the name.