Lionel acquires Model Power

[pmpexpress]

Hi Neville, Here is the part where I'm getting lost, if MRC purchased Model Power / Mantua models in 2014. How can Lionel Purchase Model Power / Mantua products from ATI Model Products Inc.?

Stated another way, If Mantua / TYCO was sold to Model Power in 2001 and MRC purchased Model Power in 2014, then what molds and / or products does ATI Model Products own?

Is someone at MRC now scratching their head saying "I thought we owned those molds"?

Rich,

Rather than an outright purchase, the arrangement with MRC might have been a licensing agreement.

This would make sense if all of the tooling has been moved over to China.

Think of it this way...

Heljan owns the tooling for many of the popular injection molded plastic N and HO Scale structure kits that have been marketed by AHM, Con-Cor, IHC, and Walthers over the past 40+ years.

When a firm offers to purchase a fairly large run of kits, Heljan manufactures the product(s), then ships the models out in packaging that is branded for the customer who placed the order.

As opposed to the risks that are assumed when a firm simply manufactures and markets its own products, licensing items to other importers allows Heljan to generate a steady stream of profit from tooling that has paid for itself long ago.

Licensing arrangements give the firm that owns the tooling the flexibility to produce products under its own brand name, or, for whoever offers the most money.

It's a win win situation for the owner of the tooling.

[Mark5]

Hi Neville, Here is the part where I'm getting lost, if MRC purchased Model Power / Mantua models in 2014. How can Lionel Purchase Model Power / Mantua products from ATI Model Products Inc.?

Stated another way, If Mantua / TYCO was sold to Model Power in 2001 and MRC purchased Model Power in 2014, then what molds and / or products does ATI Model Products own?

Is someone at MRC now scratching their head saying "I thought we owned those molds"?

I think MRC entered a "marketing agreement" for Model Power products not a purchase. If I remember correctly.

Mark

[Ike the BN Freak]

Spoke with the Lionel rep. They did acquire the N tooling, however have no near future plans for them. Also the MRC agreement was they leased the molds from MP, but one of the two chose not to continue the arrangement

[peteski]

Spoke with the Lionel rep. They did acquire the N tooling, however have no near future plans for them. Also the MRC agreement was they leased the molds from MP, but one of the two chose not to continue the arrangement

Some of the (Model Power?) N scale steam locos produced in the MRC era were modified (changed tender pickup). Which company paid for the changes?  MRC or MP? 

All these mergers and or licensing is getting too confusing. I want to go back to the good old days of Atlas Tool and Die company having their models made by Roco and Kato. 

[Point353]

All these mergers and or licensing is getting too confusing. I want to go back to the good old days of Atlas Tool and Die company having their models made by Roco and Kato. 

You are most welcome to return to 1987 and have your fill of those first generation made-by-Kato-for-Atlas GP7 and GP9 locos. 

[johnb]

You are most welcome to return to 1987 and have your fill of those first generation made-by-Kato-for-Atlas GP7 and GP9 locos. 

With N Scale of Nevada retroframes to make them look better

[peteski]

You are most welcome to return to 1987 and have your fill of those first generation made-by-Kato-for-Atlas GP7 and GP9 locos. 

My statement was in jest as Roco (Austria) and Kato (Japan) are not American manufacturers.  It was a bit of a jab at the "bring manufacturing back to US" sentiment.  Even back then Atlas was outsourcing production to foreign countries (just not to China). As for the misshapen Geep, even today some new models have their share of glaring problems which ideally should not happen.

[peteski]

You are most welcome to return to 1987 and have your fill of those first generation made-by-Kato-for-Atlas GP7 and GP9 locos. 

My statement was in jest as Roco (Austria) and Kato (Japan) are not American manufacturers.  It was a bit of a jab at the "bring manufacturing back to US" sentiment.  Even back then Atlas was outsourcing production to foreign countries (just not to China). As for the misshapen Geep, even today some new models have their share of glaring problems which ideally should not happen.

[spookshow]

Anybody heard any scuttlebutt on what (if anything) Lionel plans on doing with the N scale stuff they acquired (specifically the old Model Power steamers)? Trying to figure out what sort of "current status" I should add to my encyclopedia entries for those models.

Thanks,
-Mark

[Mark5]

Hi Mark, it's kind of hard to sort it out, eh?

Some of the MP HO line has clearly been incorporated into the Lionel HO catalog: https://www.lionelstore.com/Church ($50!  )

But when I was working at MBK (through last year) they were continuing to receive shipments of MP N scale product labeled as MP. It is possible that there is a distributor sitting on lots of pre-marketing agreement MP inventory. I guess it is possible that Lionel is continuing to market the N Scale stuff under the Model Power name. At the end of the day - I have no idea! 

Mark

[spookshow]

I suppose if Lionel wound up with a lot of old inventory as part of the purchase they could still be selling that. I guess we'll just have to wait and see if the supply chain ever dries up. I do know that MRC is totally out of the loop now as they do not have replacements for defective steamers anymore.

-Mark

[SkipGear]

Lionel has nothing to do with MRC/ModelPower/Mantua/JTT currently. They are owned by Heartland Hobby Wholesale, a distributor out of Nebraska. Heartland bought it all last year sometime. Only newly produced rolling stock has been the Mantua and Model Power cheap box of bulk freight cars that our shop buys every Christmas to satisfy the under Christmas tree crowd.

They have mainly be concentrating on getting the scenery and accessories back up and in stock.

I'm not sure where the article came up with Lionel HO in 2018. Christmas 2019 saw the debut of the HO Polar express, the chassis definitely harkened back to the the days of Mantua but it was not a mantua frame. They also sold in Santa Fe and a Christmas set. The loco's look like a scaled down O scale, in detail and everything.

[spookshow]

That's interesting. If you call MRC about getting a replacement Model Power steamer they will refer you to Lionel. Maybe they didn't get the memo.

-Mark

[SkipGear]

https://www.hhwonline.com/latest-news/576-mrc-is-acquired-by-vsa-inc


https://mrr.trains.com/news-reviews/new-products/2019/02/model-rectifier-corp-acquired-by-parent-company-of-heartland-hobby-wholesale

[SkipGear]

And the saga continues.......

Apparently, Bachmann has purchased JTT. Pricing a restock order at the shop today and all the JTT scenery stuff now has Bachmann part numbers on it.