Large Scale Central

Sept. '07 Model Railroader

An interesting announcement on Page 9.

“LGB of America to produce own trains”

I guess they are going it on their own…now. :confused:

Warren Mumpower said:
An interesting announcement on Page 9.

“LGB of America to produce own trains”

I guess they are going it on their own…now. :confused:


Warren,

Just a result of the long leadtimes required in the publishing business. Did it refer to the 0-6-0 mock-up (now there is a fitting word!) that was shown at the Las Vegas convention?

Always amazes me how that stuff shows up in MR, must be because of the bi-monthly schedule of the GR and the “sNooze” just has to get out to the people. :wink: :smiley: :wink:

BTW as far as LGBoA’s own product: I’m from Missouri, Show Me!

Still going on with the USRA 0-6-0…and they “plan” to have “fresh” inventory before the start of the holiday season. (quotation marks mine for emphasis :smiley: )

Warren Mumpower said:
Still going on with the USRA 0-6-0....and they "plan" to have "fresh" inventory before the start of the holiday season. (quotation marks mine for emphasis :D )
To me that looks like a crystal ball announcement that pre-dates Thursday, July 26th, 2007! We know that there are a few crystal balls around that are in dire need of a polish, if that would help??

Interesting…moldings are one thing but where will the drive mechanisms and electronics come from? I thought Marklin got the whole shibang?

Victor Smith said:
Interesting...moldings are one thing but where will the drive mechanisms and electronics come from? I thought Marklin got the whole shibang?
Very good question! Yes, Märklin got the whole shebang.

Now we are no longer on “next week” time, it is “Show me” time. If this production thing was not that easy prior to July 26th, it certainly gained one or several more degrees of difficulty on July 26th.
Just like Schöntag had a pre-announcement of a RhB Ge 6/6" -planned for 2008 - at the 2007 NTF, that’s what the USRA 0-6-0 is, a pre-announcement .

Remember how certain “experts” kept telling all who wanted to hear it that development, engineering and tooling was very expensive (didn’t they say 1million+ for an engine?); I don’t believe that changed when the bid was awarded to Märklin and the anticipated route collapsed like the bridge in Minneapolis.

As I said “It’s Show Me time!”, I believe it when I see goods on the store shelves! :wink: :slight_smile:

If LGB, when in existance had the mogul drive outsourced, then it would be very easy for LGBoA to pick up that drive by contracting with the outsourced company before Marklin gets there…or maybe the outsource will make drives for both companies…or possibly Marklin will decide to use it’s own drive in the LGB locomotives. Only time will tell. I’m not as pessimistic as some here…:smiley: Things are still going just as I had thought they might go.

If it has the logo on it…not that easy.

Warren Mumpower said:
If LGB, when in existance had the mogul drive outsourced, then it would be very easy for LGBoA to pick up that drive by contracting with the outsourced company before Marklin gets there...or maybe the outsource will make drives for both companies...or possibly Marklin will decide to use it's own drive in the LGB locomotives. Only time will tell. I'm not as pessimistic as some here....:D Things are still going just as I had thought they might go.
Warren,

It all will boil down to “Show me”. That’s the only way to sell product … actually produce it.
BTW from what I hear producing something still takes money. That doesn’t grow on trees and the mfgs who take a IOU that says “We’ll pay you someday when we sold enough of …” are as rare as philantropic investors who tell you “Here, take these millions! No, we don’t need returns, consider it a grant!”.

And all of that gets a little harder when one gets to read

LGB insolvency said:
................... Despite these positive steps the financial backers froze all EPL accounts on Sept. 1st 2006 and instituted a sales embargo on the existing inventory. The turnover and orders on hand to this point were as projected for the 2006 business year.[b] In addition was the sale of the American subsidiary LGB of America, a source of potential losses, to an American corporation along with comprehensive agreements regarding the longterm future cooperating partnership. [/b]Despite the substantial liquidity achieved through this all accounts of EPL remained frozen. .............
But as you say: time will tell! It will be "Show me" time since we're no longer in Kansas, we're in Missouri! ;)
Warren Mumpower said:
If LGB, when in existance had the mogul drive outsourced, then it would be very easy for LGBoA to pick up that drive by contracting with the outsourced company before Marklin gets there...or maybe the outsource will make drives for both companies...or possibly Marklin will decide to use it's own drive in the LGB locomotives. Only time will tell. I'm not as pessimistic as some here....:D Things are still going just as I had thought they might go.
Warren,

It all will boil down to “Show me”. That’s the only way to sell product … actually produce it.
BTW from what I hear producing something still takes money. That doesn’t grow on trees and the mfgs who take a IOU that says “We’ll pay you someday when we sold enough of …” are as rare as philantropic investors who tell you “Here, take these millions! No, we don’t need returns, consider it a grant!”.

And all of that gets a little harder when one gets to read

LGB insolvency said:
................... Trotz dieser positiven Faktoren wurden durch die Finanzierer am 01.09.2006 nicht nur die Konten von EPL gesperrt, sondern auch ein Verkauf der Sortimentsartikel untersagt. Die Umsatz- und Auftragsabwicklung für das Gesamt-Jahr 2006 liegt im Plan. [b]Auch wurde die verlustträchtige amerikanische Tochtergesellschaft LGB of America an ein amerikanisches Unternehmen, mit umfangreichen Vereinbarungen zur langfristigen Weiterführung der operativen Partnerschaft, verkauft. [/b] Trotz der dadurch erheblich generierten Liquiditätszuflüsse blieben alle Bankkonten von EPL blockiert.

HJ translated:

Despite these positive steps the financial backers froze all EPL accounts on Sept. 1st 2006 and instituted a sales embargo on the existing inventory. The turnover and orders on hand to this point were as projected for the 2006 business year. In addition was the sale of the American subsidiary LGB of America, a source of potential losses, to an American corporation along with comprehensive agreements regarding the longterm future cooperating partnership. Despite the substantial liquidity achieved through this all accounts of EPL remained frozen.


I added the Bold for better clarity
But as you say: time will tell! It will be “Show me” time since we’re no longer in Kansas, we’re in Missouri! :wink:

Warren Mumpower said:
If LGB, when in existance had the mogul drive outsourced, then it would be very easy for LGBoA to pick up that drive by contracting with the outsourced company before Marklin gets there...or maybe the outsource will make drives for both companies...or possibly Marklin will decide to use it's own drive in the LGB locomotives. Only time will tell. I'm not as pessimistic as some here....:D Things are still going just as I had thought they might go.
Not so easy Warren, even if LGBoA had outsourced the drive prior to the blowup, the drive, tooling and dies needed to make it are STILL a registered patent of EPL/LGB and according to what I've been reading about the ruling weren't those patents awarded to Marklin?

If LGBoA produces their own version of it wouldn’t that be a patent infringment and would put the whole thing into the court system? Wouldnt LGBoA have to pull a “Buddy L/Heritage” and produce a knockoff version thats different enough from the parent model not to trigger the patent infringment, if so then is it really a true Mogul drivetrain, a cheap knock off or an improvement?

And then of course is the issue of will LGBoA be allowed to continue as LGBoA or if it will be forced by Copyright laws to drop any connection to LGB and be forced to use the G45 name?
Interesting isnt it?

Hans-Joerg Mueller said:
Warren Mumpower said:
If LGB, when in existance had the mogul drive outsourced, then it would be very easy for LGBoA to pick up that drive by contracting with the outsourced company before Marklin gets there...or maybe the outsource will make drives for both companies...or possibly Marklin will decide to use it's own drive in the LGB locomotives. Only time will tell. I'm not as pessimistic as some here....:D Things are still going just as I had thought they might go.
Warren,

It all will boil down to “Show me”. That’s the only way to sell product … actually produce it.
BTW from what I hear producing something still takes money. That doesn’t grow on trees and the mfgs who take a IOU that says “We’ll pay you someday when we sold enough of …” are as rare as philantropic investors who tell you “Here, take these millions! No, we don’t need returns, consider it a grant!”.

And all of that gets a little harder when one gets to read

LGB insolvency said:
................... Trotz dieser positiven Faktoren wurden durch die Finanzierer am 01.09.2006 nicht nur die Konten von EPL gesperrt, sondern auch ein Verkauf der Sortimentsartikel untersagt. Die Umsatz- und Auftragsabwicklung für das Gesamt-Jahr 2006 liegt im Plan. [b]Auch wurde die verlustträchtige amerikanische Tochtergesellschaft LGB of America an ein amerikanisches Unternehmen, mit umfangreichen Vereinbarungen zur langfristigen Weiterführung der operativen Partnerschaft, verkauft. [/b] Trotz der dadurch erheblich generierten Liquiditätszuflüsse blieben alle Bankkonten von EPL blockiert.

HJ translated:

Despite these positive steps the financial backers froze all EPL accounts on Sept. 1st 2006 and instituted a sales embargo on the existing inventory. The turnover and orders on hand to this point were as projected for the 2006 business year. In addition was the sale of the American subsidiary LGB of America, a source of potential losses, to an American corporation along with comprehensive agreements regarding the longterm future cooperating partnership. Despite the substantial liquidity achieved through this all accounts of EPL remained frozen.


I added the Bold for better clarity
But as you say: time will tell! It will be “Show me” time since we’re no longer in Kansas, we’re in Missouri! :wink:

HJ, What happened to the money LGBoA used to bid on the insolvent EPL? Seams to me like if they had the cash on hand for that, they could use some of it for investing in a new product line doesnt it?

There are a lot of things we really don’t have an answer to. The motor block could be the design of the outsource company…where it would be up for grabs by the first person with the $. On the other hand it could be a patented motorblock now in the hands of Marklin. There is the question of the difference between the German made motor block and the Chinese. We can throw if’s up forever. And as you suggested, Vic, LGBoA could also make a knockoff that can snake past the patents. I’m not sure Marklin would go after LGBoA unless there is a clear patent violation. I’m sure they are mindful of what happened with the Aristo track fiasco a number of years ago. They don’t need a judge ruling that motor blocks are motor blocks. That could be financially devistating. Heavens, they could even work out a deal to put the Aristo motor block in their locomotive or even something from Piko. Anything is possible.

Let’s just hope that some people can actually see the handwriting on the wall. If I were Tony C. I would drop the LGBoA and stick with the G45 and get on with life…and new products. But if certain “cousins” are still mettling in affairs it’s likely that they will hang on to the moniker and play tit for tat games until they are declared DOA and buried.

Victor Smith said:
HJ, What happened to the money LGBoA used to bid on the insolvent EPL? Seams to me like if they had the cash on hand for that, they could use some of it for investing in a new product line doesnt it?
I have no idea, all we know is:

Jakob & Meyer, Nimbus, GCI and G45 entered a bid, how much money came from whom and where is anyone’s guess. Remember those parties were interested in EPL, not a start up company who would like to get into production.
Short and sweet: if they have money, we’ll see product. :wink: :slight_smile:

Hans-Joerg Mueller said:
Victor Smith said:
HJ, What happened to the money LGBoA used to bid on the insolvent EPL? Seams to me like if they had the cash on hand for that, they could use some of it for investing in a new product line doesnt it?
I have no idea, all we know is:

Jakob & Meyer, Nimbus, GCI and G45 entered a bid, how much money came from whom and where is anyone’s guess. Remember those parties were interested in EPL, not a start up company who would like to get into production.
Short and sweet: if they have money, we’ll see product. :wink: :slight_smile:


They could always do like they do in church, pass the plate amongst the faithfull…:wink:

IOWs go public as an IPO startup to raise investment capital to start development and production. This would give the “Family” a chance (yet again) to put there money where their collective mouths are. By being actual stockholders in the company they could truely claim to be a part of the “Family” and actually have a say on what gets produced. :open_mouth:

A Win-Win if you ask me…will we ever see it? I just dunno…:smiley:

Victor Smith said:
Hans-Joerg Mueller said:
Victor Smith said:
HJ, What happened to the money LGBoA used to bid on the insolvent EPL? Seams to me like if they had the cash on hand for that, they could use some of it for investing in a new product line doesnt it?
I have no idea, all we know is:

Jakob & Meyer, Nimbus, GCI and G45 entered a bid, how much money came from whom and where is anyone’s guess. Remember those parties were interested in EPL, not a start up company who would like to get into production.
Short and sweet: if they have money, we’ll see product. :wink: :slight_smile:


They could always do like they do in church, pass the plate amongst the faithfull…:wink:

IOWs go public as an IPO startup to raise investment capital to start development and production. This would give the “Family” a chance (yet again) to put there money where their collective mouths are. By being actual stockholders in the company they could truely claim to be a part of the “Family” and actually have a say on what gets produced. :open_mouth:

A Win-Win if you ask me…will we ever see it? I just dunno…:smiley:


Vic,

Yeah, sure! I remember someone stating that it would be “too complicated”. Probably needs to be kept “in the Family”. It will be interesting to see who will be at the next few trade shows. :wink: :slight_smile:

On the “faithful”; would they have money left after they spent all on the “fire sales”? Instead of

The Kollektor said:
help save LGB!

, one could appeal “Send Money, be part of the Solution!” :wink: :slight_smile:

Hans-Joerg Mueller said:
Yeah, sure! I remember someone stating that it would be "too complicated". Probably needs to be kept "in the Family". ;) :)
Well..yeah, I guess it is infinitly more "complicated" when you have stockholders looking over your shoulders, asking questions, and bothering to keep tabs on what their money gets spend on ;)