GM is ending HO/N licenses for scale vehicles

[bcawthon]

Citing concerns about infant and toddler choking hazards, General Motors will no longer license any scale models of its vehicles smaller than 1:64 or S scale. This is not a rumor. This has been confirmed by the senior executive handling the GM account at EMI and by GM’s manager of licensing.

As I understand it, the new policy covers all GM vehicle brands worldwide. Current licensees will be allowed to sell of existing inventories of already-produced models, but not produce any more.

There is no exemption for Hummer or Boley's Top Kick, the Busch GM TDH-5301 “Fishbowl” bus, or non-domestic brands like Opel, Vauxhall, Saab or Holden. The only models that might possibly remain are the actual military versions of the Trident CUCV trucks, as GM has no control over those.

Before anyone goes flying off about tort reform, lawsuits have nothing to do with this issue, other than a professed fear of them. There haven’t been any that I can find.

The difference between Chicken Little and GM is that something actually did fall on Chicken Little's head before she ran off screaming.

1. If lawsuits were a problem, then I would assume DaimlerChrysler and Ford would be equally reluctant to grant licenses for HO scale models. Not only is this not true, Chrysler and Dodge are actually enthusiastic about licensing in HO and Ford has told me they are very active. I can't go into details, but when I mentioned HO to the licensing representatives, you would have thought I was their favorite rich uncle come to visit.

2. If lawsuits were a problem, why target scales smaller than 1:64? A Saturn Sky model in 1:64 is smaller than a Boley GMC Topkick in HO. Many of the components in larger-scale model kits are smaller than an HO-scale BMW Isetta. And we won't even mention the little fully licensed replicas marketed as Monopoly pieces and backed with certain 1:64 diecast models. You could fit quite a few of those in the CPSC choke tube.

3. If there are concerns about legal liability derived from easy access for small children, why target HO vehicle replicas, which are primarily collector and modeler products seldom found in toy stores or mass-merchandisers? On the other hand, larger scale model kits with small parts are frequently found in such retail stores. Don't forget, Busch's sole U.S. distributor is Wm. K. Walthers, Inc. and Herpa's North American distributor is Promotex, Inc.

So why "smaller than 1:64”? I think it is a matter of money and perhaps a measure of either ignorance or contempt. GM sees big revenues from diecast, comparatively small revenues from HO. When I was at the American International Toy Fair, I talked to several manufacturers about HO or 1:87 scale. The answer was uniformly, "There's no market for 1:87."

No market for 1:87? In the United States, it is estimated a quarter-million people participate regularly in model railroading. Of that number, more than 60%, or at least 150,000 people, identify 1:87 or HO as their primary or only modeling scale. Add to that number thousands of people who are not model railroaders, but who choose to collect or model in HO scale. I think we could probably make a good case for close to 200,000 potential customers for 1:87 vehicle replicas. Certainly some companies seem to have found a market for their HO scale products.

So where are the sales? A better question would be "Where are the products?" We don't need a steady diet of pre-built NASCAR stock cars, Formula 1 racers and such. We don't need another '57 Chevy Bel Air or top-of the line Cadillac. If the industry wants to find out what model railroaders want, the research is simple. Look at parking lots and driveways while commuting to and from work, running errands or out on the town. Imagine those same driveways and parking lots in 1950, 1960, 1970 and 1980. Make those cars. Do a little research to find out what was shipped on open auto racks in the 1960s and 1970s. Make those cars. Remember what your parents drove. Make those cars.

I surprised one person with whom I was having a discussion about HO models. I asked them how many copies of a single 1:18 or 1:24 scale model they expected to sell to the average consumer. They told me "one." I then asked them how many retail consumers of large scale models bought a dozen copies of a single model. They didn't know, but confessed it wasn’t many. I then told them I knew someone who would buy two dozen of a model he liked for his layout and that there were potential sales of up to ninety models to an individual who runs a 5-car string of open auto racks. How many of those kind of customers does it take to snap up a run of 5,000 models?

Of course, there are a number of collectors and modelers who would like 1:87 scale models of racing and exotic cars, but how about making a model of a 1964 Dodge 330 and then offering a version of it as a stock car decorated for *** Landy. Or how about the Fords driven by Fireball Roberts and Curtis Turner. Anyone remember a blue Plymouth with the number 43 on the door?

You want a market for 1:87, then follow the rules of marketing for any product: identify a need and produce a product that fills the real need, not your vision of it.

My gut feeling is: "If I can't buy GM in 1:87, I won't buy GM at all." But before we go running down to picket our local Chevy dealer or flood the mailboxes of GM executives in Detroit, let's wait and see if there is some middle ground we can find. If the response is "We have considered this for a long time..." I will happily tell them that stupid ideas do not improve with age.

Bill C.

[steveblackledge]

This post is very well thought out Bill, Here in the UK we are being flooded out with tat from China that is not licenced or tested to EU standards and is sold for next to nothing, now this stuff IS dangerous to small children. The situation is out of control here. If GM did there homework to ensure only model producers with a safe quallity record built models of there products there should not be a problem, but i may be wrong,
over to you

[brothaslide]

I guess we'll be running a lot of Fords on our scale highways.

[AntonioFP45]

Bill,

But hasnt' the GMC fishbowl already been produced?

I have to admit, I'm pretty steamed right now as I as well as a number of modelers have been waiting for this bus..........FOR YEARS!

This is crazy! I hope that there will be a light at the end of the tunnel.

[bcawthon]

The GM bus is in the final production stages for a summer release and Busch is now looking at losing a huge amount of money, which it will not be able to recover from GM.

GM has been going back and forth with this silliness since last year and most recently said that Busch's products were safe. I was in the uncomfortable position of having to deliver the bad news to Busch's managing director, a good friend of mine.

When you consider just how many models Busch will have to drop from its line ('50 Buick, '50 Chevy pickup, '52 Cadillac, '56 Corvette, '66 Cadillac, including the new American ambulance, '72 Firebird, '95 Caprice, '95 Blazer), it will be a major blow to the American modeler's best friend among the German modelmakers.

Add to that the fact Model Power will have to drop the new '55 Bel Air, '69 Camaro, Firebird and will not be able to release their upcoming Oldsmobile 442 and other models in the works.

No more CMWs, no more GMC Generals from Promotex or those ex-Monogram Mini-Exacts Herpa has kept in production. No more Wiking Opel GT and Opel Manta (both of which were sold through Buick dealers in America).

I sent a long letter to the gentlemen at EMI and GM, urging them to consider a more reasonable standard. There will be a meeting in Detroit next week, where we will learn if there is some hope.

[AntonioFP45]

Bill,

Thanks so much! Let's hope that the meeting will go well and common sense prevails.

[davekelly]

This move totally baffles me. I don't see how GM could be liable should someone swallow a model. As GM is not in the stream of commerce for these models I think a plaintiff would have a hard time of making a prima facie case against GM. Of course their decision to stick with 1/64 and larger models doesn't make sense either. If they think that a kid swallowing a 1/87th Chevy will cost them millions, why do they think a kid swallowing a 1/24 rear view mirror would cost any less?

Hopefully some inhouse attorney at GM will set them straight.

[dave9999]

Couldn't the whole problem be solved with a label on the package such as... THIS
PRODUCT IS INTENDED FOR SCALE MODELING ONLY. THIS IS NOT A TOY.
NOT RECOMENDED FOR CHILDREN UNDER EIGHT... or something along
those lines. It would protect them from legal liabilities if a young child got it's
hands on them and tried to eat the model car. Just a thought, Dave

[Fergmiester]

QUOTE: Originally posted by steveblackledge

This post is very well thought out Bill, Here in the UK we are being flooded out with tat from China that is not licenced or tested to EU standards and is sold for next to nothing, now this stuff IS dangerous to small children. The situation is out of control here. If GM did there homework to ensure only model producers with a safe quallity record built models of there products there should not be a problem, but i may be wrong,
over to you

Well said Steve as I agree 100% as toys must be made to a safe standard. However the manufactureres can't be made to supervise or control what the children put in their mouths. Thats why they have parents.

Fergie

[Anonymous]

Wonderful, absolutely wonderful, another case of the corporate "thought" process doing damage to the little guys, to protect them selves from the lowest common denominators of society.

Nevermind the warning labels, people don't read those anyway.

I agree with the comments that parts for a 1:24th scale model can be more dangerous then a 1:8th model.

Alvie.

[davekelly]

Dave,

The label is a good idea, but I'm still not sure what liability they would need protecting from in the first place. Generally licensing is limited to things such as likeness, name, shape etc. It would be different if the license were to produce an actual Corvette - then there are some liability issues that could come back to bite them.

I'm pretty sure that if GM were ever to be sued because someone ate a Preiser Chevy, it wouldn't be all that hard to get summary judgmented out of the case. Heck it wouldn't even cost $1000.00 and would set a precedent that would protect other manufacturers also.

Just my opinion.

[dave9999]

QUOTE: Originally posted by davekelly

Dave,

The label is a good idea, but I'm still not sure what liability they would need protecting from in the first place. Generally licensing is limited to things such as likeness, name, shape etc. It would be different if the license were to produce an actual Corvette - then there are some liability issues that could come back to bite them.

Just my opinion.

Dave,
I see your point... It kind of makes the whole thing seem a little odd. What are
they concerned with?? Dave

[davekelly]

Dave,

Good question. If I was a conspiracy theory type person I could have a field day with this one lol. I guess we'll just have to wait and see.

BTW: I love the pic at the bottom of your post. Great job on the rock work and trees. The angle of the shoot is fantastic also!

[dharmon]

The way things are going at GM, you'd think they be trying to expand the marketing of anything that provides income...

[Cox 47]

Nothing runs like a ford! Cox 47

[Anonymous]

If it's true, time to "roll your own"! Scratchbuilders, unite!

OK, so where are the Studes, Packards, DeSoto pickups, and how about a Stude pickup? How about a Kaiser or a Henry J DeLuxe? And just where are all those AMCs, something besides a Javelin?

[rtraincollector]

Gimmie a VW beatle any day LOL .

[rrinker]

I gotta wonder about the people running GM these days. I really think they haven't a clue. They just keep on cranking out the same rent-a-cars, with superficial improvements, or when they do a complete redesign, it produces a car that would be top of the heap - 10 years ago!
And now - reduce their public exposure by insuring that no small models of their cars will be legally produced. Wow... now wonder the company is in deep trouble.

--Randy

[willy6]

Welcome to the UNITED STATES OF LAWSUITS, an on going thing that will continue.[|(][|(][|(]

[Virginian]

Please help me remember, how did we get from 2 people to over 3 BILLION without Warning Labels, Child Proof Caps, I D for Glue, 20,000 gun laws, Mandatory seat belt laws, lead free gas, handicapped parking, Amy's Law, Amber Alerts, Megan's Law.... the list is endless.
Are things really better? Well, except for the quality of HO stuff, NO as far as I am concerned. As for anyone who needs a note on an envelope to tell them they have to put on a stamp, as far as I am concerned anyone that stupid doesn't need to use the mail anyway.

[Anonymous]

About six months ago on the GM DealerWorld wed site they sent out a message to the effect that higgas prices would have no effect on sales. Duh... What is it they think they sell econoboxes? Or did they think the buying public was to stupid to put 2 and 2 together?

I have worked for a lof of companies and it seems that the bigger they are the worse they are managed. As GM's newest ads say, they are the biggest.

[BR60103]

Would it help if the models were made of fudge or stale bread dough?

[mustanggt]

Bob Lutz must have been on something when he OK'd this decision. Kids have a higher chance of choking on legos than they do on an HO or similiar size vehicles.

[brazos87]

Warning labels are everywhere! On the bottom of my beer bottle--"Open other end", top of my ladder, "Stop!". It's a shame that we have to regulate and protect manufacturers, retailers, et al., from the stupidity, laziness, and downright predatory nature of a lawsuit happy society.

[AntonioFP45]

Funny thing for me is that I no longer drive GM vehicles.

But since my layout's theme will be 1960s-71, GM buses, cars, and trucks, are a virtual required part of the scenery! This is why I was so steamed earlier.

We owe Bill Cawthon our gratitude for informing us of this situation as most likely we all would have been caught off guard. Even my LHS's owner wasn't aware of this!

Bill, if you think petitions would help, please let us know. [;)]

Keep us posted. Thanks!

[RedGrey62]

Their decision is really curious especially with recent explosion of interesnt (and buying) of HO and N scale vehicles. Look at what happened with Classic Metal Works, their line up to a few years ago was all the 1/24th scale stufff. I'd be willing to wager they're making more now since they've entered the HO and N markets than off their original lines. First we have the whole UP licensing fiasco and now this. Just when we're getting the finest ready to run stuff ever, this happens. Well, enough venting for now. I still need some more Walthers 67 fastback Mustangs to fill my trilevel autorack, I would like to see them rrerun them, since Ford hasn't abandoned us modelers!

Rick

[trolleyboy]

This is distressing and I might say a very narrow nearsighted thing to do.I work in retail and come accross stuff like this all the time. There is a reason for toy testing that is to put proper age ranges on product.The kids who could choke on this stuff can and would choke on 1/64th as well. This is why once tested toys are given a recomended age not recomended for children under three etc.If labled as an adult hobby product like preiser figures for instance they would be covered.As long as the warnings and age recomendations are there it is up to the concummer to use properly.Not meaning to sound awfull but if someone were to give a toddler one of these and god forbib the child is hurt or worse it would be THEIR FALT not the licencee or manufacturer as they had done their dur diligence and recieved an age and production test/warning from govt, testing agencies.My feeling is this is more of GM trying to find money and their fear is the potential of loosing money in a court.All tied into their poor sales and money numbers right now.This is a complete knee jerk reaction unfortunate but here it is. Rob

[Anonymous]

As Shakespeare said, "First, we kill all the lawyers."

Corporate executives should probably be next.[:(!]

[Adelie]

I guess I'm not surprised. GM has developed a habit of running everything it touches into the ground. I guess the railroads ought to feel lucky they sold of EMD before they nosed it completely in.

Looks like another product that may become an ebay exclusive.

[JPowell]

Well, I guess I'll just resort to buying Matchbox cars now!
JP