Large Scale Central

LGB of America message at Garden RR Convention

General Discussion
#1

From an attendee at the Garden RR Convention, who was at a Thursday night meeting with Tony Castellano, a letter/press release was distributed. I saw a copy.

From the letter, of particular interest to us:
“As of now, it appears that there will not be an agreement for LGB of America to purchase products from Marklin in 2008. While many specific items are in short supply, we do currently have over 250 different LGB products in our warehouse and there are further supplies at various retailers across America.”

Allegedly, an announcement was made that LGB of America will be called Silver Crest Distributors.

Is there more information to be offered at this time?

Wendell

#2

Wendell,
Silvergate has been mentioned, although now highly discreditted as a potential name by the ‘insiders’. In reality, legal matters aside, why would a company with an established business record, change its operating name. No doubt Piko might want a say in who distributes their product in America and the name ‘LGBoA’ does stir up some connotations for the competitors. Maybe Piko is pushing for a name change, as Dr. wilfer was apparently stirring up some business at the convention.

#3

SilverCrest, SilverGate, SilverLining, SilverFish … best to wait for the press release regarding a name change. :wink:

Took a while for that “No agreement” announcement to show up on the LGBoA website, too, but it finally did, http://www.lgboa.com/pdf/LGBUpdateLetter0508.pdf

Well I don’t know about the people attending the conventions! :stuck_out_tongue: :stuck_out_tongue: Haven’t they learned that carrying a MicroDisc recorder is a tremendous support for aging memories? :stuck_out_tongue: :stuck_out_tongue: “Would you please speak clearly into my button hole, thank you!” (just kidding, just kidding). Apparently it was so nice and quiet in the display hall and by the small LGBoA booth that I’m baffled why there should be any confusion regarding a potential name change, but alas confusion reigns! :lol: :lol:

#4

HJ
Considering the changes in LGB of A., any input as to Marklin’s considerations for repairs? No question, from my experience here in California, LGB of A’s service was most welcome. I enjoyed their prompt service several times surprizingly replacing parts at no cost on a well-used Mogul. Any read intent as to Marklin’s policy as to what consitututes warranty and what is gratis? Of course, a more engaging question is where will there be a repair center if not located at a Marklin dealer?

Any policy translations at this point stated from the folk at Marklin?

Wendell

#5

Wendell,
I feel that Marklin’s attitude towards servicing their product will be on par with that of Bachmann’s philosophy. Forget the excellent service of LGBoA, that will be but a distant memory.

#6

Don’t think I’d put a whole lot of faith in Märklin either
http://www.ete.org/ca/sfo/sfapr08.pdf

#7

I guess if LGBoA changes its name, well that kinda sums up who won the logo dispute.

#8

Vic,

Do not bet on it!!

#9

When it come to this subject, I wouldnt even use monopoly money. :wink:

#10
Tim Brien said:
Wendell, I feel that Marklin's attitude towards servicing their product will be on par with that of Bachmann's philosophy. Forget the excellent service of LGBoA, that will be but a distant memory.
Tim,

From what I read, Märklin provides good service in Germany, LGB®Märklin provides good service in Germany, Trix provides good service in Germany.
Question is: service in NA? Let’s assume (yes, dangerous at the best of times!) that LGB®Märklin delivered whatever goods they did deliver to LGBoA with the stipulation that LGBoA was responsible for warranty service for the goods purchased from LGB®Märklin. That could have been as a continuation of previous arrangements LGBoA had with EPL; who knows.

As far as is known LGB®Märklin hasn’t sold anything in NA yet, except what was delivered to LGBoA. The hard pill to swallow will be: service may take a bit longer, OTOH apparently LGBoA now has a 7 week turnaround time.
On another note: how could LGBoA provide such excellent service? Because EPL authorized them to and provided the materials to do it, don’t even ask how the split worked i.e. what was being offset against what. What is certain: with the LGB price structure a fair bit of service allotment must have been added in.

BTW: For those who are still mulling the possibility of some back channel NA prototype items finding their way from China to NA. Hmm … a little bird told me that won’t happen. Those particular injection moulds are supposedly at Györ. Sounds logical considering that Märklin apparently had to pony up the dough for the outstanding amounts still owed on tooling. Once it’s paid, might as well move it to where there’s the least chance of hanky-panky.

#11
John Joseph Sauer said:
Don't think I'd put a whole lot of faith in Märklin either http://www.ete.org/ca/sfo/sfapr08.pdf
Well Marvin, that, and all the gory detail that goes with it, has been in the German press for weeks.

I haven’t seen the detailled financial statements from Märklin - I’m sure they’ll show up sooner or later - and when they do there will be a note that says something like: one time charges connected with the closing of Sonneberg and Nürnberg plants. Perhaps if you would read the financial pages more regularly you’d be familiar with that procedure. :wink: :stuck_out_tongue: :slight_smile:

#12
Victor Smith said:
I guess if LGBoA changes its name, well that kinda sums up who won the logo dispute.
Pretty logical train of thought! ;) :)
#13

HJ,
the American prototype moulds may have gone to Gyor (for safe keeping), but considering the rationalisation in restructuring by Marklin, I really do not see any American prototype coming out of Hungary. It seems that Marklin, at this time, are trying to satisfy the hunger for track and European prototype items. Marklin have been through this product restructuring previously with their other model train manufacturer purchases, so would have a fair idea of initial ‘one-off’ setting up costs (as would Dr. Wilfer in China).

Marklin have long been regarded as the epitome of quality,  however, their past indifference to the American continent,  will, I feel, be reflected in their anticipated (my words) neglect of servicing requirements to their North American customers.  I see Marklin, much like Bachmann,  as primarily selling a product,  rather than getting into the warranty/servicing arena.  For those outside of America,  Bachmann serve is woeful and basically non-existent (Bachmann Europe may have 'picked their socks up' recently),  but the Pacific and possibly African continent are seemingly neglected.  Apparently the existing Marklin distribution/service centre was a small operation on the East coast,  what for the future.  At least with LGBoA there was a defined service area (regardless of turnaround time).  I heard of a customer waiting over 6 months for a warranty claim on a Jumbo power unit (how long does it take to ship parts from Europe - maybe via Cape Horn in a clipper ship?). 



 The 'insiders' are yet to give up the claim on worldwide marketting rights and ownership of trademarks.   The change in name may be to appease a certain Dr. Wilfer.
#14
Tim Brien said:
.................................... 
 The 'insiders' are yet to give up the claim on worldwide marketting rights and ownership of trademarks.   The change in name may be to appease a certain Dr. Wilfer.</blockquote>

Tim,

Considering that LGB®Märklin managed to negotiate agreements with - as far as I heard - everyone world wide, but LGBoA, I doubt that they’re worried about the “believes” of “The Boys” and their consorts. Have you ever heard/read the nicknames for ex-pres Buffington and his successor Castellano? How do you think those came about? :wink: :slight_smile: :wink: Read some of Jack Lynch’s pronouncements? i.e. PIKO engines supposedly have 7 pole motors as just one example? Does shooting from the lip ring any bells? :wink:

Dr.Wilfer is a very shrewd businessman but …

OTOH let’s see if the LGBoA name just fades from the scene or not … no reason for Märklin to take any steps in that direction, why spend effort and energy on something that will resolve itself all on its own, given time.
If “What’s their name?” figure that the sales of PIKO will replace what they had with EPL/LGB? Hey, hopefully they know what they’re doing. There will be some who would question that, especially with what went down in the past 2 years, some really smart moves those were, eh! :wink:

One of the RhB Forum members was able to obtain a V200 for his wife and got a little surprise in the bargain. Can you imagine there was a gear missing on the one axle in the one truck? Sheesh when did that happen? According to the inspection sticker: “Sept 2006”. I guess all that turmoil and the hangover from the 125th party must have done that, eh? :wink:

#15

HJ,
V200 drive gear missing - unfortunately, what happens in China, stays in China. QC will always be a major headache. Dr. Wilfer will find that out for himself. Aristocraft are still experiencing difficulties, as are Bachmann. QC is something which takes dedication from employees and it is this dedication that was so well known at Nurnberg, during the 70’s and 80’s. It was really QC that made LGB its world famous reputation. The quality of the components used is undone when QC does not assemble those parts correctly, leading to failure.

#16

Thanks to those of you who do get any information and share it. Not being able to read German, most of us would be clueless without these posts. I have other hobbyists ask me what’s up, and at least I can pass on what I read on the boards.

Paul

#17

Tim,

Chinese QC issues happen when you sub contract to Chinese manufacturers. Fortunately for the Large scale community Piko has built thier own factory which will most likely have QC controlled by Wilfer’s own people. No waiting to be worked into the production schedule , no “uncontrolled” quality control, etc…
No matter what the detractors here say Piko will most likely dominate the mainstream G market in Germany and eventually here in North America. Sounds like Marklin/LGB won’t be as fortunate when they subcontract.

#18
John Joseph Sauer said:
..................

No matter what the detractors here say Piko will most likely dominate the mainstream G market in Germany and eventually here in North America. Sounds like Marklin/LGB won’t be as fortunate when they subcontract.


Undoubtely, they started with the G1.5 market in Europe, so far all the items are “true G1.5” i.e. a mish-mash of different scales. Is there money to be made? There sure is, look at LGB they used the same concept! Mind you they also had to declare insolvency because … well one theory is they lost so much of the North American market (we all know how to spell Aristo-Craft, Bachmann and USA Trains, don’t we?) that it hurt.
Look at the geometry of the PIKO track, clearly aimed at the starter and toy train crowd. Get them before they learn what it’s all about. :wink: :slight_smile: :smiley:
Bright spot, there could be 10% of potential model railroaders in that crowd.

As far as LGB®Märklin production in China, well EPL had quite a few things subbed in China, didn’t they? Quality was a bit spotty, look at the Genesis and the Amtrak cars, but hey the true “dyed in the wool” still bought and bought and bought.

I have quite a few of those Chinese LGB items, each one of them has flaws. I dont care, I’ll fix and improve what needs to be.

#19

Hmmm… All model railroaders start somewhere- mostly with starter sets. Bigger market there than with scale “snobs” like yourself .
As far as Piko’s track is concerned that’s only your opinion. I think it’s just another case of you thumbing your nose at it because of Piko’s association with LGB of America. It takes a smart manufacturer to work out the geometry of a track system before production starts and there isn’t anything “toylike” about it.

Your so obsessed with hating LGB, LGB of America and any company that is associated with them that it distorts any statement you make in regard to any product they distribute. I for one regard any statement you make about the products they distribute as biased and distorted.

#20
John Joseph Sauer said:
Hmmm...... All model railroaders start somewhere- mostly with starter sets. Bigger market there than with scale "snobs" like yourself . As far as Piko's track is concerned that's only your opinion. I think it's just another case of you thumbing your nose at it because of Piko's association with LGB of America. It takes a smart manufacturer to work out the geometry of a track system before production starts and there isn't anything "toylike" about it.

Your so obsessed with hating LGB, LGB of America and any company that is associated with them that it distorts any statement you make in regard to any product they distribute. I for one regard any statement you make about the products they distribute as biased and distorted.


Odd.
You must be acting as a “consultant”.
Who hates the ex-LGB line?
Well, if one hates something, as a general rule, they don’t try to get whatever it is fixed.
Of course, encouraging changes and adherence to something…generally anymore results is getting folks thrown off forums, and degeneration into name-calling.

You certainly have lived down to all our expectations of you, Marvin.