http://www.trains.com/grw/default.aspx?c=a&id=894
OH MY, this is a major BURN on LGBoA. So, what does it mean??? LGB only thru Walthers?
If it does, it means FULL MSRP, no exceptions, no discount mail order either 
OUCH!
Does this mean that Walthers will publish their Large Scale book again?
I can hear the veins popping already.
Since Walthers distributes alot of G scale stuff from USA Trains, Aristocraft and Bachmann, it would be right to assume that there are other factors preventing Marklin from giving Walthers the distribution contract right now. So the big question is who in 2008 will be distributing the Euro products, track products and spare parts products? There aren’t any new USA products. We don’t know about existing USA products being re-issued as we have not seen the full production schedule (nor will we) of Marklin. I guess dealers will start “parallel” imports from european dealers in the absence of any distribution contract for LGB products in the USA.
Les
Victor Smith said:So, what does it mean? Is the big LGBoA really D.E.A.D.? Well, Tony's just this guy you know.
http://www.trains.com/grw/default.aspx?c=a&id=894 So, what does it mean??? :(
Les
OOps - “C” rhymes better.
LES DITTRICH said:Victor Smith said:So, what does it mean? Is the big LGBoA really D.E.A.D.? Well, Tony's just this guy you know.
http://www.trains.com/grw/default.aspx?c=a&id=894 So, what does it mean??? :(Les
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I don’t think its as grim as its being made out to be. Notice how the article only mentioned Maerklin and Trix and NOT LGB? LGB is being run separately from Maerklin, just like Trix. So if LGB was included in the deal they would have said so. Nothing has changed for LGB yet. Lets not all jump to conclusions at once.
LES DITTRICH said:Why would anything else they distribute bear on their ability to distribute Marklin? Its says clearly that they're going to. And where can I find Sam Adam's Seasonal Spring Offering?
Since Walthers distributes alot of G scale stuff from USA Trains, Aristocraft and Bachmann, it would be right to assume that there are other factors preventing Marklin from giving Walthers the distribution contract right now. S
This quote sums up Marklin’s attitude to the buying public in America -
“A small Märklin staff will remain in the United States to provide sales and marketing support to Walthers and the North American network of authorized Märklin and Trix dealers.”
It seems that the manufacturer prefers the distributor to deal with the public, providing token support only to distributor/dealers. All stock is being transferred from their Wisconsin wharehouse to the Walthers wharehouse. To me this signifies a downturn in their market drive into the States and provides an example of the type of product we could expect (basically European prototype). I do not believe that Marklin would maintain their existing New Berlin headquarters simply to wharehouse LGB products. It looks more likely that the facility would be shut down.
It is highly likely that the tooling for the American prototype could be sold off, but then given the current competition in the field, it would be a brave investor to take up the offer. I feel for the LGBoA consortium as I feel that their bid offer last year would have ensured that the American prototype would have survived unscathed. I feel that Marklin were burned on their 1/32 (Gauge 1) American prototype and seem reluctant to travel that road again. The tooling will one day resurface in the marketplace, but by then the other major manufacturers will have consumed the void and satisfied the market.
I’m in agreement with Peter on this. The transfer from the Marklin warehouse is the Marklin and Trix brands. The LGB brand should remain with LGBoA. Go back and read what I said on this subject last fall…around the first of October. I said that Marklin was looking to close the Wisconsin warehouse as the gentleman that runs it wanted to retire. Well, now he’s doing just that. The HO and other small stuff is going to Walthers which would be reasonable to expect and the large scale (LGB) stuff will go to LGBoA. Too many people here seem to want LGBoA to fail.
Warren Mumpower said:I agree with both of you. They would have announced at the same time if LGB was going to Walther's. LGB of America seems to be hedging thier bets with other product lines. Piko is of particular inrterest since they seem to be moving more and more toward developing a complete line of G products .
I'm in agreement with Peter on this. The transfer from the Marklin warehouse is the Marklin and Trix brands. The LGB brand should remain with LGBoA. Go back and read what I said on this subject last fall..around the first of October. I said that Marklin was looking to close the Wisconsin warehouse as the gentleman that runs it wanted to retire. Well, now he's doing just that. The HO and other small stuff is going to Walthers which would be reasonable to expect and the large scale (LGB) stuff will go to LGBoA. Too many people here seem to want LGBoA to fail.
The move to Walthers would also be natural because LGBoA is importing Piko HO. With Marklin’s ongoing attitude I’m sure they would want to keep their branded products separate from the competition. They may not feel quite that way with the LGB brand. I still say that eventually you will see a split…same warehouse but LGBoA as the importer of LGB and G45 as importer of Piko.
It is clear that LGB is left off this announcement but we still do not know what if anything Marklin intends to do in the US large scale market. I can easily see LGB being reoffered by Marklin excusivley thru Walthers. LGB had a previous relationship with Walthers and the only reason Walthers dropped LGB was that they were getting kicked in the pants by the mailorder houses. If Marklin offers LGB exculsivley thru Walthers only, that effectivly cuts the mail order houses out of the loop and we are back to single source and full MSRP.
It doesn’t make sense to have two distribution deals and two returns and repairs infrastructures, even if one of them is more or less in place already. Maybe they will, maybe not.
I agree with Tim and Terry, Marklins focus is likely to be Eurocentric for the time being, with nothing in the offing for the US this year, and Marklins historic reluctance to get too deep into the US market, LGB could very well end up like it started out back in the 1970’s, namely it being an expensive, beautique brand of German and Swiss large scale model trains.
I’m sure theres a sizable portion of fans out there who would be perfectly fine with this scenario. Sucks for others, but as its been pointed out 1/22.5 outside of german and swiss fans, has slowly been losing ground to F and A scales. By the time Marklin attempts to reintroduce any 1/2x’ish US profile stock, their market share might have shrunk significantly if they wait too long. Of course if they just stick to their roots and remain 1/22.5 Euro meter gauge they would hold their own in Europe and the rest of the world and the US could remain only as a secondary market.
Warren Mumpower said:Warren,
I'm in agreement with Peter on this. The transfer from the Marklin warehouse is the Marklin and Trix brands. The LGB brand should remain with LGBoA. Go back and read what I said on this subject last fall..around the first of October. I said that Marklin was looking to close the Wisconsin warehouse as the gentleman that runs it wanted to retire. Well, now he's doing just that. The HO and other small stuff is going to Walthers which would be reasonable to expect and the large scale (LGB) stuff will go to LGBoA. Too many people here seem to want LGBoA to fail.
On that LGBoA deal, I believe it when I see it. In writing as a press release. 
Warren Mumpower said:Welllll, going on past experience there are a few more possibilities which are not as readily apparent to those who haven't watched this kind of "merry circus" before. ;) :) ;)
:P
And all the speculation won’t change any of that, but we’ve known that ever since September 2006, haven’t we? 
HJ,
Emotionally I would have liked LGBoA to assume the distributorship for LGB, but ethically and morally do they deserve it, or for that matter does LGB deserve our sympathy. The last two years have provided enough intrigue to write a mystery novel with twists and turns in every direction. Historically LGBoA were the ones to look to when one needed parts/repairs to LGB products. Times have changed and market prices have plummetted. With the advent of Chinese production, low market prices have destined largescale items as basically ‘throwaways’ if they fail. Spare parts from Bachmann have always been a problem, with many returned locomotives repaired with used parts from condemmed locomotives deemed beyond repair. We are becoming a ‘throwaway’ society.
Remember that when established in the late 80's LGBoA represented the LGB brandname. LGB were king with little to no opposition in the marketplace. Competition and complacency took their toll , dooming LGB to the bottom of the heap. Do we really need a facility such as LGBoA? I feel Marklin want the brandname to reidentify with quality/exclusiveness with resultant high market prices. Marklin will not reintroduce the American prototype, while the consumer has the mentality that it has to be 'cheap'. There is simply too much competition from Chinese-sourced manufacturers for Marklin to attempt to compete in the current consumer climate that sees price as the overrriding factor when making the decision to purchase. Historically LGB represented the highest of quality.
When LGB prices were traditionally high, then a service facility was deemed necessary. In reality, all I need is a source of spare parts should a problem occur. My only recourse is to buy up spares listed on eBay or to buy items specifically to strip for spares. This is what I have been doing of late with Bachmann products. The high cost of internal and international shipping makes a consumer evaluate the economic reality of returning an item for repair. Consumers have become complacent of late with the sweetheart deals on Chinese sourced locomotives and rolling stock. The demise of LGB and its American line have woken many to the fact that 'cheap' LGB is no more.My take:
No information yet as to the role of Marklin with LGB in the USA. The press “release” offers zero analysis.
We have seen on this site a Marklin catalogue – 2008 – and sure 'nuff there’s large scale product. Yet, no western product.
OK, if there is NO product yet for us western folk, there’s no need to advertise distributorships for a non-existant product.
Further, my best guess is LGB is a trademark owned by the purchaser of LGB, Germany. If it is not, what in the world of common reason is going on? It is beyond me, and you have read this assertion from me before, how a company can segment itself just prior to announcing bankruptcy, relocate merchandise and production away from the parent company, and sell itself to self, and then after bankruptcy, the new owners own only half a company? Common sense tells me there are legal suits abounding in Germany.
Second guess is LGB of Germany is not going to contest who owns LGB of America – just let it go its way. The LGB name will be of little use if there is no western product for it to “distribute”.
As far as Walthers being a significant distributor of large scale — hrumph! Just look at their regularly sent retail flyers – uh, er, a 1/4 of a page at the most of any large scale.
We’ll keep watching – and HJ will continue to translate for us.
Wendell
Wendle, even if there is no “western” product at first, there a plenty of folks that model the Euro scene here in the states. I have seen enough stock flying off the shelves at Christmas time at Watts Train Shop to convince me that Euro modeling is alive and well in the states. It would be stupid to let all the investment in tooling for the F units, Genesis loco, Mogul ect go to waste sitting in a warehouse. Give it time everybody. To many around here get worked up over nothing. What will be, will be. We have nothing to say in how Marklin operates LGB or whats going on with LGBoA. Hopefully more will come to light as we get thru the big toy fair in Europe and into the summer large scale train shows where new models and announcements are typicaly made. Mike
Actually the press release is quite specific: Walthers will distribute Märklin and Trix in NA. Nothing more, nothing less!
The only thing we know about the LGB®Märklin/LGBoA relationship is that as of 2008/01/29 there is, as yet, no distribution agreement between the two.
PS It is a certainty that a press release will be issued just as soon as such an agreement exists. In the meantime it’s business as usual for those who want to buy: You get it where it’s on offer! Dealers, eBay or wherever; doesn’t really matter. OR you adjust the plans for your empire.