More Märklin news, as of 2-26-09

[Rene Schweitzer]

Update to distribution agreement

 

Fallout continues at Märklin

[Marty Cozad]

what does that mean to us? Is Marklin going under or just not the LGB part?

[vsmith]

It means the ride aint over yet.....

 

Wheeeeeeeee!!!!!!!!!!!!!

[ttrigg]

[gbbari]

Marty - it just means that unfortunately our hobby has also been affected by the global corruption of corporate executives bleeding their companies dry via excessive and unjustifiable compensation. Thank heavens there are still a number of large scale manufacturers that haven't yet succumbed to executive greed.

[DennisB]

I just received a newsletter from one of Ontario's large scale train shops. They will be receiving LGB catalogs in April and the newsletter also states that Walthers will be distributing LGB products in the future. The drama continues. Regards, Dennis.

[GearDrivenSteam]

At this point, we need to be worried about a LOT more than just model railroading.

[DennisB]

GearDrivenSteam

At this point, we need to be worried about a LOT more than just model railroading.

Model railroading is a way to enjoy life under more pleasurable circumstances. There certainly are a lot more things that we can be worried about, but why?

Dennis

[gbbari]

I agree with Dennis. Actually model railroading is a perfect escape from the lunacy that is politics and the left-wing biased media & pop culture. I sincerely hope Märklin's woes are sorted out and LGB can finally make it to American dealers' shelves. In the meantime, at least we have something of real interest and substance to follow other than the claptrap from Washington.

[vsmith]

just read on MLS that according to german sources, all new planned production of LGB in Hungary has been cancelled, only those small list of items already in production before the "troubles" can still be ordered, but delivery could be as late as 2010,

If this is true then as far as I'm concerned

wait 2 years to see who gets whats left

[gbbari]

Vic, please provide your source of that statement. I looked at MLS and could not find a post that said "all planned production". The posted information from Märklin listed only a few specific LGB items that were dropped from planned production, and another list of items that were simply postponed to 2010, because of limited mfg. capacity under the current business situation. At least I cannot find such a sweeping statement (that "all" production was cancelled) in any USA-based or UK-based large scale forum or in an official Märklin letter that I have been able to find thus far. What concerns me right now is the LGB Club and Depesche magazine: hopefully it will continue and not be de-funded. I know the layoffs are affecting Nürmberg and Göeppingen workers.

[vsmith]

Maybe a little confusing statement on my part, my reading of it was that future planned new for 2009 items have been cancelled due to the insolvency rules. that means to me anything not already IN production has been put on hiatus, this would make sense as they wouldnt have the funding necessary to bring the new items to production and to market under the insolvency funding rules, and if given the history of the last insolvency I'd bet a dollar nothing "new" will get produced until a new owner is in place as given the insolvency LGB will not be able to invest in the new items as all assetts are now governed by the insolvency rules. According to posts on GSM it appears some orders already placed can be filled by stock on hand, but that new orders for items already in production may not be able to be filled till 2010, its also very possible we will se all production halted in the coming months depending on how the insolvency hearings proceed.

For me this is DejaVu all over again, during the last insolvency, the same hopes that production could continue were also made, yet it became clear very early that everything was going to come to a halt. Given the insolvency rules over there, its very very likely this will occur again.

Either way you read it, it comes down to one thing, yet another huge delay in reintroducing LGB back into the market, if this takes another 2 years to sort out, which I think it will, might as well forget it, by that time, no one may care. As it is theres alot of negative feelings about Marklin/Kingsbridge recievership  of LGB and now Kingsbridge is under insolvency.   

What a ride, it never ends...

[ttrigg]

Is that a derailment I smell?

[gbbari]

Well, I still think that Märklin have the molds for a lot of LGB (Euro) models beyond what they currently have set up in Gyor Hungary and can produce them for minimal increases in cost. I have not seen any specific mention of status of the Chinese molds / production and thus the USA profile models beyond what was on the very short "cancelled" list. As of yet, I don't see a total shutdown of LGB production such as what happened in 2007. I do hope a sincere and capable buyer emerges quickly.