Horizon/Athearn Purchases MDC/Roundhouse!

ljudice Jun 15, 2004

  1. ljudice

    ljudice TrainBoard Member

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  2. keystonecrossings

    keystonecrossings TrainBoard Member

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    Are you kidding me?

    Fortunately, I don't go for the MDC Roundhouse stuff.

    So, how long until Horizon "Enrons out"?
     
  3. ljudice

    ljudice TrainBoard Member

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    No joke Jerry!

    MDC has a lot of things that are useful, they just seem to have a major problem with research and "decoration".

    Perhaps this will change now?
     
  4. steamghost

    steamghost TrainBoard Member

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    Then you're lucky, Jerry. LHSs and other dealers will have to order from Horizon or else, most likely, as is the case with Athearn stuff.

    And it only took a year or more after acquisition before Athearn produced anything new in N.
     
  5. Pete Nolan

    Pete Nolan TrainBoard Supporter

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    I think it's more a case of the inevitable. It's been happening in other sectors of the hobby industry since the 70s. Model railroading is a fairly large sector, so it's one of the last to go through consolidation.

    I do wonder about Horizon's customer switching imperative, however: "Since all MDC/Roundhouse products became exclusively available through Horizon Hobby on June 14, retailers who have outstanding MDC/Roundhouse backorders with other distributors will need to have them transferred to Horizon." Rather direct and terse.

    Oh well, it's my opinion that this consolidation will continue--and, as a reflection of the market reality, it won't be the best for us modelers.

    Pete
     
  6. wig-wag-trains.com

    wig-wag-trains.com Advertiser

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    Pete You said it.

    Steamghost: Horizon only bought out Athearn at the end of February 2004. The development time lag had nothing to do with Horizon. The delay announced in December MAY have been the result of the due dilligence process.
     
  7. chessie

    chessie TrainBoard Supporter

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    I own quite a few of the MDC well cars... they are smooth running and easy to acquire... the detail level is quite good too for the price.

    Harold
     
  8. Kisatchie

    Kisatchie TrainBoard Member

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    First Athearn, now MDC, bought out by Horizon.

    The next Walthers catalog is definitely going to be slimmer. I wonder if Walthers is going to start buying up companies [​IMG]
     
  9. Thirdrail

    Thirdrail In Memoriam

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    What I'd like to say would get me permanently banned from this board. My basic roster is now three MDC steam locomotives and I guess I can forget about ever seeing any new varieties. MDC and Fine-N-Scale were the only companies producing turn of the last century locomotives and rolling stock in N scale and they will be sorely missed. I'd be willing to bet we'll see the end of the MDC N scale line by the end of this year.

    I hate to think that the MDC designers and artists are out on the street, as they were most creative, producing many "plausible" models that could be kitbashed into accurate models of something else.

    I, too, question, that "backorder" business, but suspect that the doors to the MDC plant will be padlocked tomorrow morning until the moving vans show up.

    Phil Walthers must be spending some sleepless nights. I don't think he has the spare change to buy anyone out. [​IMG] :mad: [​IMG]
     
  10. Doug A.

    Doug A. TrainBoard Supporter

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    Hope Atlas isn't on their list. Actually I hope Atlas isn't on anybody's list. Atlas is one of the best companies in the industry at getting it "right", meaning good quality, appropriate pricing, and great product selection. Anybody that buys Atlas would screw that up.
     
  11. ljudice

    ljudice TrainBoard Member

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    Gregg,

    The first thing I thought about too were their employees... I hope you're wrong about that but you may be right.

    But I'm not sure I see this as negative to N-scale. I know people were less than thrilled by the F59, but it appears as if they are on track now - and delivering - or planning to deliver a lot of new products in N. In fact, in terms of new products, Athearn is up to the Atlas level of *NEW* product introductions (they don't have any old ones to re-release).

    MDC had some reasonable models, but from a modern prototype point of view they infuriated me because they constantly made mistakes, even though the tooling was really quite good.

    I don't know about the turn of the century stuff - I assume they will keep that line as a way to compete with Atlas, which is doing things there now. On the modern side, things can only get better.

    Lou
     
  12. jmhewitt

    jmhewitt TrainBoard Member

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    I am not nearly as pessimistic as most of you about Horizon Hobby.

    Before my health forced me back into trains full time, I spent a lot of time running around fields chasing Horizon Hobby aircraft products. I thought they were some of the best and most innovative around.

    I would expect that they would not trash the MDC stuff, but use it as a good start. my mogul and consuls from them are among my best running steam locos, and I have not had a bad one. this particular format (tender drive) could easily be expanded to do all those small steamers the we desparately want/need.

    I think we should encourage Horizon to move that way!!! who wants a great 4-4-0 or 4-6-0 or 2-6-2 or even 6 and 8 driver switchers!!!

    Michael

    P.S. I do think that Horizon has its sights firmly set on causing great grief to Walthers. I think they are a pretty chunky target.

    Michael
     
  13. steamghost

    steamghost TrainBoard Member

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    With consolidation comes the inevitable downsizing. Horizon has announced that MDC/Roundhouse operations are being moved to Carson, CA, where Athearn's offices are.
     
  14. Colonel

    Colonel Staff Member TrainBoard Supporter

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    I guess my only concern would be a reduction in competition?????

    I have quite a few MDC rollingstock and find they are great models once you replace the trucks and couplers.

    Only time will tell whether this aquisition is a benefit to us modellers
     
  15. Bruce-in-MA

    Bruce-in-MA TrainBoard Member

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    I have a stupid idea. Maybe we should wait to see what happens before we write off this purchase? Yeah, I know, I’m spoiling the carping party...

    I for one would like to see the MDC kits come back, and maybe Horizon will make it happen. Maybe they will re-package them under their Athearn label?

    Besides (as it has been suggested) if they go to the extreme and discontinue their N-scale line, then I would think that one of the several other manufacturers will fill whatever void is left. It’s my belief that they will probably re-release the viable MDC items under Athearn.

    But it's all just a hobby,....right?
     
  16. umtrr-author

    umtrr-author TrainBoard Member

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    Well, here's one change: The on-line ordering is "temporarily suspended."


    So much for those bargain basement closeouts...
     
  17. randy shepler

    randy shepler TrainBoard Member

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    With them having just bought out Athearn I think Horizon is simply grabbing market share away from Walthers. No way they could have intergrated companies completely yet and now they absorbed MDC into this mess. Their distribution channel isn't even fully worked out on how it will supply Athearn and now they add MDC . I think the big winner of all this may end up to be Atlas if they play their cards right. Atlas being distributed by both warehouses and can pump out enough projects that fill fill the MDC/Athearn void. Without having actual numbers I think Atlas already surpassed Kato who seems lagging the last few years. The turmoil at Horizon until they get bugs worked out will not help them or Athearn/MDC gain any market share themselves. Walthers will find its hold on the industry slipping and may be regulated to European imports and Bachman. Who know maybe Atlas will one up Horizon and go into the distribution themselves or maybe with a friendly company like Intermountain.
     
  18. Brett C. Cammack

    Brett C. Cammack TrainBoard Member

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    Looks like Athearn just got into N scale "blue box" freight cars in a big way...
     
  19. William Cowie

    William Cowie TrainBoard Member

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    George, maybe that's WHY they had those close-outs... clearing inventory and raising a little money in anticipation of the merger [​IMG]
     
  20. wig-wag-trains.com

    wig-wag-trains.com Advertiser

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    MDC hasn't produced an N Scale Kit in 4 years. There is no market for them.

    To prove that, all you have to do is read the posts on the various forums where people report they love buying them at $5 or less. Since they retail at $8 or $9 that $5 selling price is less than dealer cost. Smart dealers aren't going to sell at a loss for long.
     

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