Hi all,
By Special Request here something about Märklin. Märklin had an interim CEO, who now moves to the Board of Directors of Märklin. The new CEO is Axel Dietz.
From the Handelsblatt of Jan.31, 2007. Author Joachim Hofer / translation H-J. Mueller
Handelsblatt/Joachim Hofer said:
....Two digit annual growth is planned
New Märklin boss wants to get out of the Collectors’ corner
The financially stricken Swabian model railroad producer Märklin ought to get back to speed as soon as possible. “I would like to increase the turnover in future from year to year by a two digit number.” mentioned Axel Dietz , the new CEO of the well-established company, on Tuesday to the Handelsblatt. The profit ought to increase even more than the turnover.
In order to get Märklin back on track, Dietz plans to access primarily new consumer groups. “The make has, up to now, felt a great responsibility to the collectors. Large segments of the population were almost shut out by Märklin.” mentioned the former CEO of Mega-Dairy Müller. It is now time to again motivate the children for the train hobby. In addition he wants also to engage play enthusiastic adults for the miniature worlds.
The 46 year old has ambitious growth plans, since in the past years the engines and cars of the company slipped to dust collectors on store shelves. A comparison: Five years ago Märklin had a turnover of 170 million Euro; in 2005 the turnover was a scant 123 million Euro. Only the past year brought a stop to the slide at the 150 years old company. The turnover reached 124 million Euro.
The new owners established a comprehensive restructuring program
The British investment company Kingsbridge Capital acquired Märklin in May of last year. At that time the heavily indebted company was not far from closing its doors. Since the 22 partners in the previous ownership were hopelessly at odds, the sales negotiations dragged on for months.
The new owners established a comprehensive restructuring program. One fifth of the 1500 employment positions will be eliminated. In addition the company will close the factory in Sonneberg. At the same time there will be a 50% increase in investments and R&D funds to a total of 15 million Euro.
“My goal is to re-establish the old glory to the make” proclaimed Dietz. The new CEO has a lot of experience with trademark products. Prior to his engagement at Märklin the Ludwigshafen native worked for “Big Names” like Philip Morris, Tchibo and Wella.
The two makes of the Göppinger company shall in future be clearly separated entities. “Märklin and Trix will play different roles” according to Dietz. Just like Adidas positions its Reebok group differently from the Adidas name, Trix will get a different profile from Märklin’s.
Trix lost a lot of prestige in the eyes of the model railroad fans since Märklin acquired the company in 1997. Despite the make having lots of potential, since it is fundamentially different from Märklin: Trix runs on two rail DC and Märklin on three rail AC.
Dietz keeps the “detail cards” close to his vest
Dietz didn’t want to reveal the precise future positioning. The same goes for his other plans. That has good reason: official assumption of duties is only tomorrow. Nonetheless Dietz will meet with important customers beginning today at the opening of the Nürnberg Fair.
Märklin is the most renowned and largest model railroad producer. The competition suffered just as much as the Swabians in the past years. The Austrian competitor Roco crash-landed two years ago and had to declare bankruptcy. In the Fall the same fate reached garden railway producer LGB. Just like Märklin, LGB has in the meantime found a new owner.
Fleischmann fares comparatively well. “Fortunately the last two or three years were not as hard on us as they have been on Märklin and LGB” said co-owner and CEO Rolf Fleischmann in an interview at the beginning of the week.
