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Märklin expanding in the US - no more MTH new development?


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A German gauge 1 web site reports that Garden Railways magazine is reporting that Märklin is expanding their distribution network in North America as of January 2015.

Walthers will remain a key distributor, but it looks like big M* is building their own distribution network.

 

Historically Märklin has made some great US models in the smaller scales, and in the 2014 news flyer, in H0 they have a gorgeous limited production Super Chief set with an F7 ABB consist along with Soo Line F7s and various freight cars. In Z scale they have a couple of E8/9 units, which I think is a first in that scale. While this may not be terribly interesting for us here in 1 or G scale, it could be an indication that Märklin is probing the US market, so maybe in a couple of years ...

 

What also caught my eye on the German site is that in the German text, they say that MTH is no longer doing any new developments. They don't elaborate, but the way I see MTH right now, looking at the 2013 catalog and the YouTube video of Mike talking about G scale ... yeah, they could be right, at least for 1:32.

 

Any thoughts about these subjects?

 

Jens

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I certainly hope this means Marklin tests the waters here in the US especially for G scale!  Thanks for sharing that news :)

 

I checked out that website, and while my German isn't that great, I read that as just making a statement that MTH has no new development (ie based on what they have seen in this new catalog).  In other words further making the case that another reason why Marklin might consider exploring the US market.  Based on the context and purpose of the article I don't think it was intended to communicate some inside information that no new developments will ever be done by MTH in G scale.  

 

And on that point, I'm not sure if we have seen the same video, but Mike Wolf recently was talking about the ES44 and that the next scale for it to be made is G gauge.  It has apparently been shared at one show (at least) that if sales from the 2013 catalog are good enough they will roll out a new steam engine which is said to be an 0-8-0 (which is new development) I also believe a new diesel would be introduced as well which at this point sounds like it might be the ES44.  I have also heard this from other sources as well.

 

- Mike Wolf on the ES44

 

http://www.gscaletrainforum.com/index.php?/topic/4-mth-new-2013-catalog/page-10 - topic where this was originally being discussed.

 

I mean its been said straight from Mike Wolf himself (the owner) about the ES44 being made in G scale so I'm not sure how much more direct the communication could be at this point that making it in G is on the table (which is new development).  Looking back, for some time people clearly not in the know were saying MTH was getting out of G scale, then were saying they had sold all the tooling to another G scale Mfg and so on and despite MTH saying otherwise when directly asked the rumors persisted.  All those rumors have been proven false with the rolling out of the 2013 catalog.  Given how inaccurate all the hearsay has been to-date I would focus on what MTH itself is saying rather than what others outside the company are passing around in casual conversation.  Based on everything I have heard and considering what seems reasonable & likely makes sense, I believe that they are in-fact waiting to see how sales are in the 2013 catalog before deciding how to move forward.  Assuming this is true, no one may know (even the decision makers within MTH itself) for certain what will be in the 2014 catalog yet.  They are probably still waiting to see.  The other question that comes up now is when will the 2013 production actually start to hit the market?  Will it hit in time for them to get a good enough read on what to announce in the 2014 catalog or will they choose to wait for 2015 for considering new development?  I just don't know.

 

But back on Marklin, this would be great news for us consumers as far as choice.  I just hope the sales are there for them if they do jump in to keep producing product :)  Please keep us posted on what you hear!

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I checked out that website, and while my German isn't that great, I read that as just making a statement that MTH has no new development (ie based on what they have seen in this new catalog).  In other words further making the case that another reason why Marklin might consider exploring the US market.  Based on the context and purpose of the article I don't think it was intended to communicate some inside information that no new developments will ever be done by MTH in G scale.  

 

I think you're right. It was an editor's opinion.

I also think you're right about future developments from MTH.

 

Anyway, I'll keep you posted if or when I hear anything. I'm already imagining the possibility of Märklin producing a set of El Capitan hi-liners ...  :wub:

 

Jens

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Well Marklin isn't the same company anymore since the Simba-Dickie-Group bought them out last year?

 

What I read into all this is that MTH European Sales may be hurting Marklin a bit so Marklin is trying to retaliate. I do know that Mike Wolf of MTH says he went with the 1:32 scale lineup to compete with Marklin...Competition is good for all of us! 

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Well Marklin isn't the same company anymore since the Simba-Dickie-Group bought them out last year?

 

It isn't the same company - I think it's improving.

 

For years Märklin has been selling old models in new dress, while the rest of the gang moved on to re-tooled and scale correct models. This has given them sort of a toy-train image even though they have of course had a loyal customer base for ages. Now it seems Märklin has money, and they're catching up to the competition. In all scales we see great full-length passenger coaches and in 1:32 even a brand new re-tooled steamer (BR38) with all the features the market has come to expect.

 

I think they may have their eyes set on the US ... also in 1:32.

 

Jens

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This is why I'd love to see MTH enter the European 1:32 market:

 

Currently there's a Märklin Santa Fe F7 AA set for sale on ebay for 999 Euro, which at today's rate is equivalent to 1335 USD.

It's from the MAXI series, which is Märklin's entry level series, and while they're OK runners, the models are avoided by all serious modelers here because of the seriously low level of detail.

 

The factory price for a similar MTH AA set is 750 USD. Throw in a couple of B units, and you're still below the mark for the Märklin AAs only.

 

By offering reasonably priced models with good performance and a reasonable level of detail, MTH could really give the European brands a run for their money.

 

Jens

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Jens,

 

I remember when the Marklin Maxi F7 (if you really want to call them that) were brought to market.  Carachiature is the right word to describe the modeling effort.  At the same time, the LGB F7, going the other way, was hiitting the market.  The Marklin was more expensive, as I recall, and less detailed.  Also, didn't Marklin run on AC power and required a separate kind of controller?  That was in the old days, when we relied on shop owners for information.

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I remember when the Marklin Maxi F7 (if you really want to call them that) were brought to market.  Carachiature is the right word to describe the modeling effort. 

 

I second that!

 

 

Also, didn't Marklin run on AC power and required a separate kind of controller?

 

Hmm, frankly I don't know.

 

Märklin H0 ran on AC with a third center rail. They still use the third rail today, but disguised as center stubs.

I don't think they used a third rail in gauge 1 unless you go very far back, but they might have been running on AC to use the same transformers. These days they're all digital, but in true Märklin fashion, they have their own protocol (mfx). The latest command station does have DCC, though, but they're dragging their feet.

 

Jens

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  • 1 month later...

Märklin has issued a press release that they are opening a brand new production facility in Hungary. Effective immediately they expect 50 new jobs in the production. The facility incorporates spray molding, surface treatment and paint as well as assembly. Metal work stays in Germany. With this facility Märklin is able to withdraw from China completely, although it is speculated that pending production runs there may be allowed to finish.
The new facility represents a 9.4 million Euro investment and should ensure more timely deliveries and better security regarding designs and trade secrets.

Jens

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Just added a link to the German press release in the post above.

I forgot to mention that with the new production facility all scales (Z, H0 and 1) will now be manufactured in Europe (okay - "withdraw from China" may have told that story already :rolleyes:  )

 

Jens

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  • 3 weeks later...

Interesting! I got the Marklin magazin today, and on the backside there was a big advertisement for MTH trains! It was for the tinplate model of Leipzig station! Can we see some cooperation between these two great companies in the future?

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No doubt MTH and Märklin are aware of each other.

You know - a cooperation between the two is actually not that far fetched. Seen from a distance, it doesn't even sound stupid, but of course I don't know their business strategies.

 

If one is allowed to dream, and just in case anyone from MTH or Märklin is reading this:

 

1:32 ATSF El Capitan hi-level and matching coaches to scale, please.

Sets will do nicely, such as:

Set 1: RPO, baggage and dorm

Set 2: Diner, lounge and step-down coach #1

Set 3: Step-down coach #2 and 2 x normal coach

Set 4: 3 x normal coach

 

Oh-kay ... back to reality.  :rolleyes:

 

Jens

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... and the Märklin Z scale E units announced for 2014 will be OEM'd by AZL according to a post on the AZL forum. Looks like the poster speaks for AZL.

 

Which tells us that Märklin is not afraid to cooperate with US companies.

Also, MTH has already licensed the Leipzig station from Märklin, so yeah - who knows?

 

B)

 

Jens

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  • 5 months later...

It doesn't seem too far fetched that Maerklin would go for the US market as the European one is down right now (although the German one is still very dynamic), they have turned out a very large stud of rolling stock for the european market and gauge one is now seriously a reality in Germany and Switzerland, alas France is still far behind. One should also remember that Maerklin has purchased its big competitor (and the original reason why it got involved in gauge one, in the first place, back in the late sixties was to compete with LGB) And as the big market for LGB was the US they might very well turn to that market now in gauge one. They have done an awful lot of US stuff in HO (F units, alco PA 1 and GG1... and in Z scale so why not in gauge one, which they entered already with their Maxi tinplate line. It would also make sense in this competitive world, since MTH has entered the O gauge European market why not for them invade the MTH US market. But so far no concrete news of this has filtered through to me, so this is just speculation, but it makes sense. The idea of developing manufacturing in eastern Europe is also quite logical and may reserve some big surprises in the next few years. I got this from a German importer of high end stuff in gauge one, who worked with the far east and doesn't want to hear about it, any longer...

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Guys, here's a video of a vast collection of gauge 1 and some gauge 2 models from a German collector.

Enjoy the video. The collection and the layout is incredible.

Below I'll explain why I think this is the problem with European gauge 1.

 

 

Collections like these are - while awesome - the symptom of what's wrong with European gauge 1. Or maybe it's just an explanation why the models are so crazy expensive compared to MTH for example. These models are not cheap brands. They're the most ridiculously expensive brands like Lemaco/Lematec, Fine Models, Proform, Fulgurex, Dingler etc. Seriously expensive.

If you look at around the 5:50 mark, you'll see a bunch of Austrian class 310 2-6-4 lococomotives. The ones with the odd boiler. They're from Fine Models. Same brand that makes a simple 2-axle freight car priced at 1000 Euro. The 310 class models were built in 5 versions. I see 6 models in the collection and all versions seem to be there, so there must be a double in the bunch somewhere.

I'm told that the collection is owned by the owner of Spur 1 Exclusive which also own Fine Art Models. Want an Allegheny or Big Boy with no expense spared? Check the previously owned models section. There's no price tags. If you have to ask, you can't afford it. They're in the video also. I think I noticed two Alleghenys next to the Challenger and the Cab Forward.

 

And this is what I think is wrong with the European gauge 1 market. All manufacturers keep making these ridiculously expensive models because a few really really rich collectors are capable of absorbing the entire production. This is why gauge 1 stays a niche market here. Average Joes just can't afford the damn things.

There's nothing wrong with that in principle, but as Chuck pointed out a while back, MTH is proving that it is indeed possible to make affordable models with reasonable quality. Sure, MTH model detail is not up there with the top notch European brands, but pick any model from Lemaco or Fine Models and see how much MTH stuff you can get for the same money. There's just no contest.

 

I suggest that the European gauge 1 brands - with the possible exception of Märklin - are not particularly interested in volume. They're geeks locked in a race for most detailed models no matter the cost, and they have a market for it. They're simply not interested in volume or making the gauge popular for a broader audience by making slightly less detailed models with a price tag that more people can afford.

 

Harumpf!

 

OK, rant over.

 

This is why I'm happy that I have found MTH which is capable of offering good value for my money. They have some way to go still (the passenger coaches I don't like), but the F7s and other diesels are right on target.

 

This is why I think MTH would have a shot at the European market if they'd make what I call "90% models" - models that are 90% correct, but where - for production reasons - some details have been omitted or made from cheaper material or a cheaper production method or whatever. It's the last 10% that make up 90% of the cost. Okay, maybe not quite, but you know what I mean.

If MTH did this and if, say, they teamed up with Märklin, they would have a 1:32 market with no competitors. All the others are locked in a battle for detail.

 

Jens

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Hi folks:

 I agree 100% with Jens analysis, this was one of the reasons I went to modeling US prototypes back in 2009. I was modeling then the French NORD railway, and I haven't given up on that project, but I was confronted with the following dilemna: Fulgurex was producing a fine electric model of De Casos mikado tank engine 1-4-1 TC which was announced at nearly 7000€ price tag and the suburban NORD coaches to go with it at around 1100€ a piece, a minimum train was made up of 4, thats 4400€. these coaches are the one the 1-4-1TC spent most of its long active life hauling and are therefore indispenssable.  I also needed a set of Rapide Nord coaches made  by Neil Rose Finescale locomotive company, I needed three at around 1200€ a piece add another 3800€. Then Aster Europa was turning out a beautiful but very complex and expensive live steam 2-4-1 P at announced price around 12000€. Add all that up and you are looking at a 27600€ price tag. I just couldn't swing it.

 

So I took a good look at MTH GG1, one of my favourite US engines and bought one, I now have it a F3 ABA lash up, a Baldwin VO1000, and an Alco PA1. In steam I have an Accucraft T1, and I found a opportunity on an Aster K4. I got 5 David Leech coaches and various US freight cars (32), and recently got 5 J&M heavyweights. All equiped with scale metal wheelsets and Kadee or original Janey couplers. Total price including shipping  from the US for the most part 16000- 17000€.

 

Now that I have a bit more cash than before, I went to see this gent in Germany whose fine collection and layout is featured in this video and I bought fom him the mikado tank at 5500€ which is a bit more affordable. to continue with my Nord project along with my Pennsy theme... But without his help I would still be dreaming about one. They used to run the line from Gare du Nord to my hometown which was the last line they did right up untill 1970. Where else could you see a whole fleet of modern Pop valve steam locomotives in regular service? These were probably one of the most modern suburban tak engines in the world, perhaps with Tchekoslovakia.

Mathias's collection is awsome though, and his layout is very animated with people and scenes that are a joy to behold, besides he is a verywonderfull fellow and fascinating to talk to. 

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  • 2 months later...
 
  • 11 months later...

I also agree on terms of realism or so called realism of these high end models made for the collectors for the European market: My 1-4-1 TC has hatches that open all over the place. For instance small round domes over the firebox inspection plugs for boiler washouts every three weeks: They open! it's crazy but who needs that detail to be functional? The side water tank hatches open inside is a sieve like on the real thing - again who needs that? The smokebox door opens revealing the Lemaitre exhaust and so on. All this detailing is useless. On the other hand the crosshead guide which in reality is fixed to a very difficult braket to make (I know I am making one for my scratchbuilt live steam model of same) is just loose and isn't fixed at all, curtailing my original intention to buy this engine to finnish my own live steam version quicker, I am better off rebuilding it from scratch and selling it to some Shelve queen admirer. Ditto the Cossart valve gear which is fascinating on these locos, which I saw in service and rode on, is dummy with an articulation where there was none in real life and is driven from a belt drive from the axle... Totaly useless! So so much for these high end models. I also have a friend who owns a Fine Art Dreyfuss Hudson, since my pike is electric and steam I told him why don't you bring it around so we could run it? He answered that every time he moves it from the glass case he looses a part or two... So he won't move it any more! Meanwhile our prices are double or triple of other countries, and people in the business say gauge one, won't pick up in France. No wonder!

Edited by du-bousquetaire
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