Update:
Just received an email that things remain with the same importer in Australia, too.
But still not a word from G45/LGBoA!
Hmmmmm what is it … almost 8 weeks past the awarding of the bid to Märklin and not a peep yet!?!
Europe, with Germnany in particular, has been the predominant market for Lehmann for a generation. Is it not wise business practice, considering limited output, to satisfy the dominant market first with Euro prototype. Remember that Marklin used to have a gauge 1 North American range and from memory it was not very popular with the masses. Maybe a case of once bitten, twice shy.
If one doubts the importance of the German market then a quick perusal of German eBay will show the extent of sales/bidding at any one time. Regularly three times the quantity normally available on the American site.
This is the most interesting thread for some time with some pretty perceptive (if cynical) thinking.
Let us suppose that the events of September 2006 were bound to result in disruption to product delivery and that this was well appreciated.
In germany, I understand, wages are guaranteed? for a period? staff only signed as unemployed in May 2007? and I guess that in America the position of employees is alot less generous. Therefore by shipping alot of product to the USA, this would allow the Amercian side of the company to continue selling product [edit:the Americans would need to be independent to do this and lo! they were] and secure a cash flow for them during the production stoppage. Now whether those shipments were paid for with cash at the time or taken on credit who knows. I bet it was credit. This would explain the calls from the American faithful to purchase as much product as possible (and thereby generate cash for the American side of the business). This cash could be used to fund the overheads and salaries of the Amercian side and the business of paying for the goods (back to germany) could be delayed until some point in the future. Fast forward to today. I wonder if the Germans are still owed money by the Americans? Why would the Germans be in any hurry to sign new contracts with the Amercians if a)the Americans owed them money b)the Germans already had a distribution network in America. The Germans will string this one out as long as they can for without product, the American business will run short of cash eventually unless the Americans can find other products to sell. At which point any debate about trademarks and patents doesn’t matter. I also wonder how the Germans will pay the Americans for warrantee work without a new contract. It seems that the Germans hold all the cards in this and we must wait to see what they decide. I really feel for you lot in the States. Product supply in Europe has been very bad and the new supplies will be very welcome. The shortage in the States might well get worse before it gets better.
Rgds
Les
Les,
The one thing that hasn’t been mentioned yet is the possibility of NA dealers ordering directly from Märklin in Germany. I’d have to ask one of our dealers about that, but I know that happens in a number of product line cases.
I’ m sure ther will be product flowing, one way or the other. And since Märklin has a reputation for producing high-quality, the warranty service question ist not that super urgent.
The one post from a LGB user on one forum - he had to ship several engines back to SD and then ship them yet again, because things weren’t done right - sure was an eyeopener as far as the “super repair service” from LGBoA is concerned. Of course it is possible that this is just one very unlucky guy 
;).
PS The “unlucky” guy’s post is here.
I thought about dealer direct ordering too but I figured if any legal moves were planned by either side then it wouldn’t do to have the Germans distributing product into a market - North America - by a channel which might be disputed by the Americans. Thus, the Germans avoid doing something which might be seen as ‘controversial’ and remain on the right side of the legal fence - where-ever that may be!
Les
LES DITTRICH said:Right!
I thought about dealer direct ordering too but I figured if any legal moves were planned by either side then it wouldn't do to have the Germans distributing product into a market - North America - by a channel which might be disputed by the Americans. Thus, the Germans avoid doing something which might be seen as 'controversial' and remain on the right side of the legal fence - where-ever that may be! Les
However there are those instances - this is of course only “hearsay wink-wink nudge-nudge” stuff - where some dealers have a very good understanding with some other dealers in Germany and stuff gets shipped. You know the “you scratch my back, I scratch yours” method. I have seen that in the past and I’m sure that when push comes to shove that will happen in future. Which means the stuff gets delivered from the factory and hits the distribution channels.
Remember, nature hates a vaccuum. 
And there is more than one way …
Not to mention the circumstance that the far off places like South Africa and Australia are already in the regular distribution chain - so much for that rather grandiose claim by Tony Castellano that LGBoA has the distribution rights etc. etc. for the whole world except Germany.
Hmmmm … didn’t sound so kosher then, looks even less kosher now. Of course Schöntag said as much two days after that press release from LGBoA.
To me it looks like max pressure being exerted with all the means at one’s disposal.
Tell you what, I’d do the precise same in this situation. We all know who has the leverage in this game!
Further input from reader analysis makes sense:
PREMISES:
1 - Likely LGB of A. has control of ONLY those products they had in storage and those shipped to them prior to the collapse of LGB Germany.
2 - Likely LGB of A. does not own, because of their unsuccessful bid to purchase LGB Corp. and the LGB logo, color use, and rights of production/advertisement as “LGB.” If they did, what is Marklin doing using the logo indicating in a Marklin catalogue LGB products?
3 - Likely LGB of A. did leave a paper trail identifying those products leaving Germany for the USA.
4 - Likely Marklin knows of the quantity and kind of products that did leave Germany for the USA.
CONCLUSION:
Les speculated that Marklin will simply let LGB of America sell out what it has and not supply them further.
Good thinking.
Then, whether they own LGB becomes moot – unless, of course, LGB of America wants to contest they are simply a distribution company that is independent of LGB of Germany. Likely, that would be a court determination if LGB of America insists on using LGB as a name.
I speculate it would be at this time Marklin will collect the money due, per wholesale rates at the time of shipment, for the LGB products that were sold. If the money is not there, well, what does LGB of America have as assets to offer? Hmmmmm. I think I would be very careful if I were offering LGB of America to be my distributor of my non-LGB products – at least at this time.
Wendell
Guys,
What if LGB of A has the rights to the LGB trade mark in North America… What if they just sit on the mark… No product comes to North America… Does Marklin change the name to “Maxi” to get around the trade mark issue… Marklin has a very poor dealer network in my neck of the woods, unless you are in HO or Z… Still worried about the “whole shebang” thing??
Wendell Hanks said:
Further input from reader analysis makes sense:PREMISES:
1 - Likely LGB of A. has control of ONLY those products they had in storage and those shipped to them prior to the collapse of LGB Germany.
2 - Likely LGB of A. does not own, because of their unsuccessful bid to purchase LGB Corp. and the LGB logo, color use, and rights of production/advertisement as “LGB.” If they did, what is Marklin doing using the logo indicating in a Marklin catalogue LGB products?
3 - Likely LGB of A. did leave a paper trail identifying those products leaving Germany for the USA.
4 - Likely Marklin knows of the quantity and kind of products that did leave Germany for the USA.CONCLUSION:
Les speculated that Marklin will simply let LGB of America sell out what it has and not supply them further.Good thinking.
Then, whether they own LGB becomes moot – unless, of course, LGB of America wants to contest they are simply a distribution company that is independent of LGB of Germany. Likely, that would be a court determination if LGB of America insists on using LGB as a name.I speculate it would be at this time Marklin will collect the money due, per wholesale rates at the time of shipment, for the LGB products that were sold. If the money is not there, well, what does LGB of America have as assets to offer? Hmmmmm. I think I would be very careful if I were offering LGB of America to be my distributor of my non-LGB products – at least at this time.
Wendell
Wendell,
You are right on with your premises. From what I understand there is money owed to Märklin from LGBofA for product that was shipped out during the bankruptcy. Also, since they are selling competing lines like Brawa and Piko. Märklin will not do business with them till both of these items are cleared up. I also understand that Dave Buffington has sold or gave his control of G45 to the German lawyer that was their lawyer on the bankruptcy deal. I also understand that he was or still is the family lawyer of the Richters.
Bob Burton said:
Guys,What if LGB of A has the rights to the LGB trade mark in North America… What if they just sit on the mark… No product comes to North America… Does Marklin change the name to “Maxi” to get around the trade mark issue… Marklin has a very poor dealer network in my neck of the woods, unless you are in HO or Z… Still worried about the “whole shebang” thing??
The reason that Märklin may have a poor presence in you area except for HO and Z is because that is about the only thing they make. The Maxi line has not been around for sometime. Except for a very small line of 1 gauge Märklin has not be in the large scale trains for years. One of the reason they wanted LGB. If the distrubution gose to Märklin then you will see the dealers signing credit applications ASAP.
Josh
Josh Larson said:Josh,
Wendell, You are right on with your premises. From what I understand there is money owed to Märklin from LGBofA for product that was shipped out during the bankruptcy. Also, since they are selling competing lines like Brawa and Piko. Märklin will not do business with them till both of these items are cleared up. I also understand that Dave Buffington has sold or gave his control of G45 to the German lawyer that was their lawyer on the bankruptcy deal. I also understand that he was or still is the family lawyer of the Richters.
Yes, that is part of the background rumblings.
Remember when G45 mentioned the dire deadline of May in order to be able to handle the Christmas season? Well, 13 weeks to Christmas … no LGB supplies from the Fatherland? Doesn’t sound good, does it??
Some of those other rumblings may come true.
Josh Larson said:Bob Burton said:
Guys,What if LGB of A has the rights to the LGB trade mark in North America… What if they just sit on the mark… No product comes to North America… Does Marklin change the name to “Maxi” to get around the trade mark issue… Marklin has a very poor dealer network in my neck of the woods, unless you are in HO or Z… Still worried about the “whole shebang” thing??
The reason that Märklin may have a poor presence in you area except for HO and Z is because that is about the only thing they make. The Maxi line has not been around for sometime. Except for a very small line of 1 gauge Märklin has not be in the large scale trains for years. One of the reason they wanted LGB. If the distrubution gose to Märklin then you will see the dealers signing credit applications ASAP.
Josh
Just give this one some time!
The LGB® Made by Märklin will hit the NA market soon enough. The 1:32 stuff from Märklin has always been high-end - except for the MAXI line. Have a look through the product line up Select "Spur=1, then “Anzeigen”.
HJ,
A good point - I don’t deny it - but if it were me in Germany, I’d discourage this so the American ‘prestored’ products would be sold faster. This would bring the situation to a conclusion much faster. But your illustration is okay so long as the Germans can ‘officially’ disclaim any knowledge. ‘Other’ importing into America would satisy the market and reduce the Amercian’s sales and have the same sort of effect. The key, if it exists, would be the debt for the ‘prestored’ product - or any ‘intercompany’ debt - which could in theory be tenously linked to Marklin’s statement that the purchase price would vary depending on the assets - one of which might, just might be, an intercompany balance owed by the Americans. I bet the purchase price will be determined in part by the extent this balance, if it exists, might be realised for CASH!
Les
Les,
So true.
Reminds me, I should put in an order with RRS for a few items, more money for Märklin. :lol: