Hot News in the G scale headlines today is thatMarklin LGB is again in trouble. ( I predicted this one a while back). Marklin / LGB just declared bankruptcy for a second time, no joke. This info comes from a very reliable source. It seems like this bankruptcy is very similar to the first failure from 2 years ago. The company is now being run by a court appointed administrator and is producing very little. Mean while a suitable buyer is being sought out, rumor has it they must manufacture in Europe criteria has been lifted and now any company in any country can buy Marklin / LGB. Even more off the wall news, since the restrictions have been lifted it is most liekly the parent company owning Bachman will be the most likely next buyer according to other hard fact rumors. If so, production would be moved to China and the distribution of the LGB line up would go thru Bachman channels. This is exactly what I predicted a while ago if anyone remembers that and most didn't agree with me. The article didn't say what will happen to Walthers, but my guess is that if the Bachman sale goes through, they would be out in the cold as a sole distributor. Who would have ever thought that Europe would lose 2 of it's biggest G scale train manufacturers? Does anyone know if there are any other European based G scale train manufacturers left over there if Marklin / LGB fail and get moved out? I know Mamod makes G scale live steam, but they are a small company. I was just curious. To those who blew my predictions off, let me just say I told you so, ha, ha.
Does this mean we will now refer to Bachmann as "Borg-mann?" Just a little tongue in cheek for those that refer to companies with lame nicknames. On topic - will a Bachmann buyout be good for G scale? They seem to have a pretty good line-up now.Maybe it'll work out in the end. Eric
EricB, I gree with you in that if Bachman does buy out Markling / LGB it would be a good thing. Bachman is really stepping up quality when they introduced thier new 1:20.3 series which is a completely different line up from their Large Scale Spectrum series. There is alot better quality being put into the new 1:20.3 series from Bachman.
I almost forgot about Piko, I think they are still being made in Germany, unless they moved to China also by now. Silvergate has sole distribution of Piko much like Walthers would have had with Marklin if they didn't get into trouble again.
If I had the money to buy Markling / LGB this is what I would do. I would go ahead, buy Markling out and create a new parent company and called it the "MLGB Group". Under this new groupo name of course I would have 2 seperate divisons. The Marklin name would be used in Europe for European type trains and of course the LGB name would be used here in the USA and would offer USA type trains only. Now before I hear critism, I would have a European and a USA based cedntral warehouse where there could be exchanges made between each other so the European people can buy USA type trains and the USA people can buy European type trains. Then any hobby shop who was previously a Marklin or LGB dealer would have a chance to re-sign up as a MLGB group dealer for free, no matter what country they are in, being able to sell Marklin or LGB trains. Ah, this was just a concept idea I came up with.
Actually from what I understand Silvergate Distributors actually Owns Piko Now. So no worries about them. Piko has kept production in Germany and with the distribution deal with Silvergate has stayed afloat. As for Bachmann buying LGB. I would love to see that. But Bachmann needs to correct one thing Marklin did. I looked at 3 new 2009 Coaches that were imported at the Train show this past month. Marklin took LGB's stamp off the car and replaced it with theirs. That's not only Blashphemy, that's wrong. So you own LGB, that doesn't mean you take the name off the cars. Bachmann would have to stamp LGB back on the cars to excite me about it again. The way they've handled the LGB thing with Marklin, Bachmann has a template for HOW TO NOT SCREW IT UP. Bachmann's new equipment is impressing me. I wouldn't personally run it because I don't go much for narrow gauge, but I am quite impressed at how Bachmann G-Scale was once considered garbage and is now being considered as High Quality. Good Job Bachmann, I'm actually proud of you guys for once.
I think until LGB starts to lower the pricing they will remain in trouble whoever owns them.The truth is USA Trains don't cost as much and frankly I think the quality is better. In these tough economic times you have to be as competative as you can, frankly IMO LGB while makes a fine product, it's grossly over priced.
It doesn't help that Marklin is over priced on EVERYTHING. I can buy Walthers or Rapido or Rivarossi cars that have the same quality as Marklin and they cost less.
I fell in love with G scale back in 1987 when I found a Lionel store that kept G scale stuff in a different locked section. It was all LGB and I really liked the size, but didn't switch then because I was getting into car shows and NHRA drag racing. When I retired from those 2 things I went back into trains, but didn't choose LGB because thier trains were #1 mostly European style and #2 their scale ratio was all over the place and not standard at 1:22.5 like everyone thinks it is. I tried Aristocraft first with some bad luck, then switching out to USA Trains and never looked back. I only have 2 Aristocraft pieces left in my collection and 1 LGB box car which is a railbox road name, it goes well with my USA 50ft box cars.
Thanks for the post. Having Marklin go bankrupt again is bad news for Z scalers. It may make sense to split off Marklin Z & HO (Trix) from LGB to go to new buyers that can make some sense out of a mish mash of product. The Marklin name may continue as a source of German/EUS product. I'm not sure if I want Bachmann to produce Marklin HO or Z items.
Glenn, I never considered what may happen to other scales that Marklin may make since I'm always concentrating on G scale, I tend to have horse blinders on and just see the G scale end of it. Thanx for bring the other scales to our attention that would also be affected. There are a few companies that produce many scales such as Bachman as you brought up. Bachman has step up their quality by coming out with a 1:20.3 model line up which is alot better than what they have ever produced in the past for G scale. Maybe they will also step up other scales, you never know. I own a Bachman 0n30 Chrsitmas train set, it's pretty nice for what it is.
Marklin Bankrupt / News Netherlands / Porsche I heard about Marklin going bankrupt on the news (radio) here in The Netherlands. This was back in April. English article -> http://www.spiegel.de/international/business/0,1518,605513,00.html I also read somewhere that Porsche's (yes the car) Wendelin Wiedeking (who is a big train collector) was thinking of investing in Marklin. I just cant find an English article on it.
So long as he does it after Bachmann takes over LGB. I know that's just a rumor but Marklin had their chance. They Blew It. Bachmann may produce it in China, but imho if they use the same quality standards as their F-Scale manufacturing, the quality will not deter. I guess we'll have to sit tight and see what happens.
