Jack,
as a ‘one-eyed’ purchaser of the product, I suppose that I was insulated from the reality of the market and the economic forces at work. In the early 90’s, LGB were at their peak, dominating the market. Their name was synonymous with quality. I distinctly remember the dismay I felt when I read the first Porter was to be made in Korea. Then their ‘Toytrain’ range made in the Czech Republic. Then the transfer of German production of American standard gauge outline prototype to China. The ‘rot’ set in back in the early 90’s and has continued to decay their once dominant market position. If one thought of garden trains then the name ‘LGB’ was the first on peoples’ lips. Today of course a different story with the once, underlings, now the leaders in the field. Bachmann/REA/Aristo-Craft/USA Trains have taken the place of LGB in the American market. There is of course a strong support base for LGB in today’s market, but the inability to secure product has seen even the most ardent supporters switch allegiance. This loss of loyalty cannot be regained and this is the legacy that the ‘new’ LGB will face.
The Europeans will always embrace the product, no matter who makes it. Americans have a choice and have exercised that choice by supporting Accucraft/Aristo-craft/USA Trains for their standard-gauge outline and Bachmann/Accucraft/AMS for their narrow-gauge choices. A simplistic approach would be that the company lost touch with its consumer base and failed to respond to the consumers' needs. I see the increasing interest in licenced products as one of the reasons for loss of enthusiasm, as the increasing production of such products, depleted valuable production time and inflicted the market with a very limited product appeal. LGB management, seemingly turned a deaf ear to consumers needs and continued in their stoic 'bloody-mindedness' to give the public what they told them they wanted and not what they actually wanted.
How the company actually failed and how things were concealed/orchestrated will most likely never be known? However, everyone knows that people cannot keep secrets, forever and one day, things will come into the light of day. In the meanwhile, there are those among us who will speculate and those who will defend. Such is life.