MTH 2021 Transition Plans Revealed

[KeithL]

From MTH's website:

M.T.H. 2021 Transition Plans Revealed

May 18, 2021 - One year after announcing M.T.H. owner Mike Wolf's 2021 retirement plans, the company's evolution is coming into focus with the move from the current Columbia, Maryland facility at the end of May to a smaller location in nearby Elkridge, Maryland. The new location will house two of three smaller spin-offs from M.T.H. Electric Trains including MTH Parts & Sales, LLC. The parts company will feature an all-new parts website with a new on-line ordering platform slated to go live this Summer. M.T.H. Electric Trains' R&D Division will continue developing DCS and other electronic products on its own in the satellite location it has occupied in Western Michigan for the past 24 years.

The third spin-off, to be managed by a few long-time M.T.H. employees will be operating alonside the parts company in the smaller Elkridge, Maryland facility. The train company will continue to operate as M.T.H. Electric Trains - marketing and producing new model train products - after many discussions with various companies to purchase the entire portfolio of M.T.H. tooling were unsuccessful. The new products will include select RailKing and Premier O gauge models and occasional production of RailKing One Gauge G Scale models.

Although the entire tooling portfolio wasn't sold to a single buyer, this past Winter several tooling sales did occur, including the sale of the HO and S Gauge tooling assets to Scale Trains in January 2021, followed by the March purchase of select O gauge tools by Atlas. At this point, approximately 20% of the O Gauge tooling portfolio, including the Atlas purchases, have been sold to date. The as-of-now unnamed buyers of the other O Gauge tooling will be revealed later this Summer.

The final 2020 cataloged items have or are about to exit production and will be arriving over the course of the next two months. In addition, subscribers to our E-newsletters as well as visitors to the M.T.H. website have learned of many new product announcements over the course of the past few months. These products, slated for delivery in the second half of 2021, represent the first of the items to be marketed and sold by the smaller "new" M.T.H. Electric Trains. You can identify these items by visiting the M.T.H. website and selecting the "2021 All Scales Catalog" at mthtrains.com/product_locator.

Subscribers to our newsletters have also received near-daily announcements of many custom-run products exclusively offered through specific M.T.H. Authorized Retailers. Because our new, smaller location offers no room for inventory of trains, all new items announced for 2021 and beyond are being built-to-order. Customers are encouraged to contact their M.T.H. Authorized Retailer early in the promotional process to get any desired item(s) on order and avoid the disappointment of missing out on these unique releases.

All M.T.H. items will continue to carry a limited warranty, though defective items delivered after June 1, 2021 may only be eligible for a refund from the M.T.H. Authorized Retailer from which it was purchased if that retailer doesn't offer in-house warranty service. Full details about the warranty policy are available HERE.

M.T.H. owner Mike Wolf is deeply indebted to all of M.T.H.'s loyal customers over the past 41 years as he embarks on retirement. He and all those who remain at M.T.H. Electric Trains are especially grateful for the hobby's support over the past 12 months and look forward to the continued interest by all M.T.H. fans as new releases are announced.

[G3750]

Hmm. I think this calls for a quiz (poll). One question for all the marbles. Please select the most correct answer from the choices below:
A) The song "Never Can Say Goodbye"
B) The song "How Do You Like Me Now?"
C) P.T. Barnum's famous quote: "There's a sucker born every minute"
D) All the above



George

[J. S. Bach]

D

[Rufus T. Firefly]

The as-of-now unnamed buyers of the other O Gauge tooling will be revealed later this Summer.

So excited.

[Neil]

Talk about "Hail Mary" passes in football. This is the train company equivalent. Or perhaps the snowball in hell's chance of success. I give the remnant "MTH-Lite" companies 1-2 years before they give up the ghost. Dealers responsible for warranty repair with no reimbursement at all? Does not seem a viable model except for those with very efficient and comprehensive service capabilities. People are amazingly talking about new tooling from this skeleton crew version of MTH. MTH had no new tooling to speak of for the better part of a decade when they were whole. The inflated optimism seems almost sad, but people will want what they want, regardless of the facts. Runs of 25 locos or or 100 rolling stock may make it possible for this company to last a few years, but I'm not betting any money on it.

I do hope the employees wind up in better shape than the company is, but that's probably wishful thinking too. To those heavily invested in DCS, I wish you luck in not needing new equipment or parts. I think that company is going to have a short lifespan too. But maybe they can keep going for a few years in terms of parts and replacement TIUs/WIUs/AIUs.

I do wish Lionel would license LionChief 2.0+ upgrades with high quality, diverse sounds or manufacture upgrades on their own. I think there will be a large market over the next 5-10 years amongst those who are now DCS only or have a significant roster of PS2/PS3 locos.

[Rufus T. Firefly]

Dealers responsible for warranty repair with no reimbursement at all?

Sort of glossed over that the 1st time by, but that little detail seems like a great incentive to not be a dealer and not have to be confronted by folks looking for repairs.

[G3750]

Talk about "Hail Mary" passes in football. This is the train company equivalent. Or perhaps the snowball in hell's chance of success. I give the remnant "MTH-Lite" companies 1-2 years before they give up the ghost. Dealers responsible for warranty repair with no reimbursement at all? Does not seem a viable model except for those with very efficient and comprehensive service capabilities. People are amazingly talking about new tooling from this skeleton crew version of MTH. MTH had no new tooling to speak of for the better part of a decade when they were whole. The inflated optimism seems almost sad, but people will want what they want, regardless of the facts. Runs of 25 locos or or 100 rolling stock may make it possible for this company to last a few years, but I'm not betting any money on it.

I do hope the employees wind up in better shape than the company is, but that's probably wishful thinking too. To those heavily invested in DCS, I wish you luck in not needing new equipment or parts. I think that company is going to have a short lifespan too. But maybe they can keep going for a few years in terms of parts and replacement TIUs/WIUs/AIUs.

I do wish Lionel would license LionChief 2.0+ upgrades with high quality, diverse sounds or manufacture upgrades on their own. I think there will be a large market over the next 5-10 years amongst those who are now DCS only or have a significant roster of PS2/PS3 locos.

Yeah, this does seem like a great deal of wishful thinking to me as well. The whole "let's pretend" aspect of service and parts just blows me away.

• No compensation for warranty work? Who eats that cost?
• Parts - right now (or over the past few years) getting the right parts for MTH locomotives hasn't been easy. Is MTH going to produce runs of 25 locomotives with parts for another 100 units? It's been said elsewhere that the parts business might gross $600,000 annually. That's straight out of the crack pipe. Revenue of that size would require procurement, order processing, storage, and distribution mechanisms more consistent with the full-blown MTH company. Color me dubious.
• Unless you are an MTH tech or authorized service center, you do not have access to some of the important diagnostic equipment needed. How does that work in an MTH-Lite scenario?

Let's be clear, I am not cheering the situation. Like Neil, I believe that MTH customers are going to be stranded by these developments. And we've already seen hobby shops that were heavily dependent on MTH take direct (and fatal) hits.

I do wish Lionel would license LionChief 2.0+ upgrades with high quality, diverse sounds or manufacture upgrades on their own. I think there will be a large market over the next 5-10 years amongst those who are now DCS only or have a significant roster of PS2/PS3 locos.

ERR / 3rd Rail is poised to take advantage of this. I hope Hitchcock is thinking along these lines as well, but that's not a particularly good bet either.

George

[J. S. Bach]

I read on OGR as part of the above that 14may21 was the last day to buy parts as they are preparing them for transfer to the new location. Also that Midge is NOT going with the new operation! There goes any efficient parts service.

[chuck]

Huh? Does anyone in the company actually proof read their copy?

That seems to have been composed under the influence of the "stream of semi-consciousness". We're shutting down No, wait, we're only sort of shutting down. Everything is up for sale (only no one is buying most of it). Wait, we have someone that MAY be buying it (whatever it is) but we can't say anything till later this summer (So maybe they aren't buying it?). Clear as mud.

I am particularly fond of the following line from the opening paragraph:

the company's evolution is coming into focus

Someone really needs to see an optometrist (and probably a therapist).

What they might have said that may have been clearer and at least coherent:

At the end of May MTH will move to a smaller location in nearby Elkridge, Maryland. The new location will house two of three smaller spin-offs from M.T.H. Electric Trains including MTH Parts & Sales, LLC. The parts company will feature an all-new parts website with a new on-line ordering platform slated to go live this Summer. M.T.H. Electric Trains' R&D Division will continue developing DCS and other electronic products on its own in the satellite location it has occupied in Western Michigan for the past 24 years.

The third spin-off, to be managed by a few long-time M.T.H. employees will be operating alongside the parts company in the Elkridge, Maryland facility. The train company will continue to operate as M.T.H. Electric Trains - marketing and producing new model train products. All new items announced for 2021 and beyond are being built-to-order. Customers are encouraged to contact their M.T.H. Authorized Retailer early in the promotional process to get any desired item(s) on order and avoid the disappointment of missing out on these unique releases.

All M.T.H. items will continue to carry a limited warranty, though defective items delivered after June 1, 2021 may only be eligible for a refund from the M.T.H. Authorized Retailer from which it was purchased if that retailer doesn't offer in-house warranty service. Full details about the warranty policy are available HERE.

Cest le vie.

[Norton]

Compare all this to 3rd Rail. How many employees do they have, 3 maybe 4? One year warranty, after that forget about parts as few if any exist other than maybe traction tires. Zero parts also for the pre ERR command engines. How about Weaver, Williams, or K-Line? Maybe one repository each for a dwindling parts supply. The hobby is returning to its roots where individuals made and repaired their own trains.

Pete

[Rufus T. Firefly]

Does anyone in the company actually proof read their copy?

Noticed that, did you? Probably originated from that room of infinite monkeys pounding away at their typewriters.....

The hobby is returning to its roots where individuals made and repaired their own trains.

That always was a significant component to this hobby wherein you actually learned some useful skills. Probably for the best.

[Neil]

"the company's evolution is coming into focus"

More like "the company's devolution is coming into focus." The sad thing is a lot of enthusiastic MTH fans will buy this load of fertilizer lock, stock and barrel. I wonder if Andy E. is involved in the new remnant MTH company? He always seemed a realist. I suppose if I were him, and a paycheck was involved, I'd sign on for this sailing of the Titanic. But I'd make sure I knew where the exits are.

[robert.]

There are a few 600 lbs gorillas in the room. Doing business with Asia has skyrocketed in price. Manufacturing delays are 6-8 months out. Ocean freight is ridiculously priced. So many raw materials are in short supply. If Mr wolf got out he got out at the right time. If someone thinks they can make money in the toy train market. they need their head examined.

[Norton]

As of a couple on months ago Andy was moving on. Talking to Atlas which would be a good fit IMO. They need someone to lead the O scale division. I would surprised if anyone was hiring though.

Pete

[chuck]

If Mr wolf got out he got out at the right time.

I feel he MIGHT have gotten a better price on the tooling back in 2019, pre-covid.

As of a couple on months ago Andy was moving on. Talking to Atlas which would be a good fit IMO.

That's what I thought I had seen as well. I checked LinkedIn and he is still listed as part of MTH. I don't know if/when he will update his status. Nice guy, I wish him all the best.