Tim Brien said:
Pius,
it is a fact that past manufacturing history has shown that when a toy train company has been purchased, whether outright, or as part of an insolvency/bankruptcy scenario and the production base has shifted to a new location, then one could expect a temporary lapse in production for up to two years. Marklin was required to provide new production tooling, new factory location and train its workforce and all this takes time. The production schedule for 2008 is devoid of American outline and concentrates on those items that have always been popular with the European market and production limitations are aimed at maximising financial return, in the short term, by way of guaranteed sales.
PJ: hey Tim, it is a fact that Maerklin/LGB has several production centers already in place, including a quality control. Reading in German forums, i here that new products are available, and there are different small quality issues, but as we know German workmanship it is just a matter of time until those are solved.
Remember, that North America is not the only LGB market outside of Europe and that other markets are receiving product. You keep blaming LGBoA as the reason that the product is not available in the United States and yet those who really want the product have little trouble getting it in Europe and shipped to the States. It seems though that you want things the way they used to be with a top quality distributor of the product and a well respected central service department to handle any problems that you may have. Unfortunately or not, LGBoA does not exist anymore in the capacity it once did. If product is not available then one needs to await the time until Gyor (and China) are in full production.
PJ: you are right, as a private person you can import LGB items, but as a large vendor this is a different ball game. count on it the owner of LGBoa would not tolerate such imports, it would direct undermine the asking price for the distribution rights in north America.
I do not believe that LGBoA actually has worldwide distribution rights to the brandname, as evidenced by countries outside USA having no problem negotiating distribution deals with Marklin. Marklin's production is still ramping up and there is generally insufficient production to satisfy current world demand. The product currently produced in Gyor has little actual appeal to the North American market, with reported non-American outline modellors in the States, accounting for around 12% of actual LGB purchases.
PJ; you are right, Laws tend to be quite territorial, i guess therefore LGBOA just owns the distribution rights for north America. I do not know where you got your information about purchasing amounts, 12% of total sold items for the USA, seem rather low. By the way, if i would be Maerklin/LGB, i would do the same thing, i would produce items which appeal to the European customer, because in the moment there is no American market.
I have a strong personal opinion on this topic and it is not in LGBoA's favour. An immoral action happened back in 2006 that hastened the collapse of the parent company. I saw no financial benefit to the parent company in severing connection with its sibling in the United States, particularly coming so soon after it had supplied so much product to the company for distribution. LGBoA was in a position to help Schontag in raising capital to restructure the failed parent company, but chose to sit on the sideline awaiting an outcome more to their liking, i.e., total control of assets. Their decision came back to bite them, leading to the failure of LGBoA as well.
PJ: changing the name from LGBoa to Silvergate I see already that the bite is working its way.
If anything is holding up distribution of the product in the United States then it is Marklin's current inability to supply its base domestic market in Europe. I do not believe that LGBoA is the stumbling block and is nothing more than a lame duck company, causing conflict with its current distribution deals with Piko. The decision was made that the company needed to be 'retired' to enable growth of the current 'renamed' distributor. Was it a wise financial arrangement to cease operating LGBoA as a 'viable' company if it actually does contain the assets that you seem to think it has?</blockquote>
PJ: Hey Tim, be aware that designing and producing the mold for a new product is the most time consuming and most expensive part. LGB/Maerklin is ramping up production with existing molds. Assembling a Engine does not take that much time, i am sure you can image that one employee can assemble several engines a day. How ever , i love the idea that Maerklin/LGB is picking up the production, in the end i love the idea that someone with a big experience and SOME money is working on it.
