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Reply to "Conventioal vs. Legacy vs. DCC ???????"

I will repeat it (again1):

MTH DCS is NOT going away - at least according to this e-mail posted last June my Mike WOlf (CEO MTH). Note: I'm including all the e-mails I've seen about the demise of MTH so you can form your own opinions:

Posted June 8, 2020:
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Dear Loyal M.T.H. Customers,

June 8, 2020 - First, on behalf of M.T.H. Electric Trains, I want to thank you for the support and encouragement you have shown my company over our 40-year journey. From humble beginnings and a lot of hard work, we were able to build one of the world's largest model train manufacturers - one unquestionably buoyed by your unwavering support.

In particular, I am proud that M.T.H. has released more models than any train manufacturer in the history of our hobby. The variety, quality, and infusion of technology throughout our offerings allowed M.T.H. Electric Trains to help bring enjoyment to all who share our wonderful hobby.

It is, therefore, with mixed emotions that I tell you I have decided to retire in 2021 and close the business. The last two M.T.H. catalogs, our 2020 Volume 2 O Gauge catalog, and our 2020 HO catalog and all non-delivered items from our 2020 Volume 1 O Gauge catalog, 2020 Ready-to-Run Train Set catalog, 2019-2020 S Gauge catalog, and 2019-2020 G Gauge catalog will feature the last products produced by M.T.H. Electric Trains.

The new items featured in all these catalogs will be available beginning Summer 2020 through April 2021 and will carry our limited one-year warranty supported by our Authorized Service Center network and the M.T.H. Service Department. Upon our closing in May 2021, our ASC network will provide warranty coverage through April 2022. A list of M.T.H. Authorized Service Centers is available on the M.T.H. website and will be updated as M.T.H. Authorized Retailers join the program over the coming months.

M.T.H. Electric Trains would not have enjoyed success without the support of the M.T.H. Authorized Retailer network. While traditional retail has changed significantly over the past decade, the independent hobby shop has been and continues to be the most important cog in our distribution chain. I truly appreciate the support and friendship these shops have shown M.T.H. I wish all of them good luck and prosperity in the years to come.

Finally, I want to thank all of my employees for their hard work over the years. Most of them have been with me for decades and their loyalty and talents were paramount to our success.

With thousands of tools and molds and a wealth of intellectual property, a new model railroading company may arise from my former company as I entertain various options and buyers. One scenario is a new company organized and owned by members of my current staff. Their decades of experience, work ethic, and creative talent will ensure success regardless of who owns the assets while providing a welcome bridge between the past 40 years and the future.

The remainder of my time will be busy as we clear out inventory and other miscellaneous items accumulated over the past 40 years. As that process evolves, we’ll be offering consumer and retailer purchase opportunities

Again, from the bottom of my heart, thank you for your loyal support for all these years.

Mike Wolf, President
M.T.H. Electric Trains

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This was posted to the MTH Dealer's network on June 9, 2020:
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DCS/Proto-Sound Lives On.

June 9, 2020 - With the scheduled closing of M.T.H. Electric Trains next year, support for the DCS Digital Command System and the Proto-Sound 3.0 onboard locomotive systems will continue through a new independent company headed up by current M.T.H. staff once direct M.T.H. support for the systems concludes on June 1, 2021.

The new tech company will continue to manufacture and provide support including any necessary software updates to the DCS hardware or DCS WiFi App. In fact, new and exciting product ideas are currently under development.

The DCS System controls any Proto-Sound 2.0 and later equipped locomotives and first debuted 18 years ago. It has been an integral part of the M.T.H. product line family since its inception and its continuation beyond the closing of M.T.H. is an important part of the transition envisioned by retiring M.T.H. president Mike Wolf.

As the retirement transition process moves forward, more details about the new company's creation and ongoing development of M.T.H.'s technology packages will be announced. Stay tuned.

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The future of MTH:

The following was posted on the O Gauge Railroading On-Line Forum (not a forum on Facebook) on Dec 31 by Steve Nelson of Mr. Muffins Trains. I can't add anything so take it for what feel it's worth:

I talked with Mike about this. He told me:

They were creating a new legal entity to take over DCS development, DCS sales, etc, and had already selected the management team. They would start when MTH wound down - forecasted for the end of April 2021

They were creating a new legal entity to take over parts provisioning, support the authorized service centers, and provide warranty repair for products MTH sells through the shut down. Again, he has already selected the management team

What was unknown was what would happen, going forward, with new product production and their tooling. That is still unknown. IMO, and its just my opinion, their tooling and their manufacturing capability is just too valuable to go away

To have MTH announce uncatalogued diesels like this, in late December, gives me confidence that there's a path forward and these items, like everything else we are receiving now, will receive warranty coverage.

I have been a customer of MTH's for a long time, and a dealer for over five years, and in my humble opinion, I have found them to be competent business people. Very professional.

This was in response to the recently announced NEW BNSF 25th Anniversary locos.

Source: Source: https://www.facebook.com/group...ink/3190712227696931

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January 2, 2021:

ScaleTrains.com Acquires M.T.H. HO & S Scale Tooling

ScaleTrains.com™, Inc., a leading manufacturer of HO and N Scale model trains, announced the acquisition of M.T.H. Electric Trains® HO Scale and S Gauge tooling assets.

“MTH is recognized as a leading manufacturer of HO scale steam locomotives. The purchase of MTH’s HO products also allows us to broaden our product line into passenger cars, track, and more. We believe there is an opportunity to grow the S market as well.” said Shane Wilson, President of ScaleTrains.com.

The acquisition includes steam and diesel locomotives, freight cars, and track in both scales. The HO tooling also includes turbine and electric locomotives, subway sets, passenger cars, and more. Engineering schematics for several all-new steam era HO projects were also received as part of the agreement.

“ScaleTrains.com has a great reputation in the industry and the M.T.H. HO tooling will make a great addition to their already impressive HO lineup.” Stated Mike Wolf, President of M.T.H. Electric Trains. “S Gauge fans will find the ScaleTrains.com team loaded with talent and model railroading experience.”

Both scales are being melded into ScaleTrains.com umbrella of brands including Rivet Counter™. Several molds have been transferred to the ScaleTrains.com factory and testing is already underway. Over the next few months design will begin to convert the models to accept the ScaleTrains.com motor and change to ESU-LokSound® electronics including DCC & sound. The first models are expected to be available in 2022.

ScaleTrains.com is making significant investments in infrastructure to better service more brick-and-mortar retailers in the future. Although ScaleTrains.com is currently not accepting new retailers, dealers are welcome to send their contact information to retailers@scaletrains.com in anticipation of opening new brick-and-mortar accounts within the next year.

M.T.H. Electric Trains will fulfill all outstanding customer HO and S Scale preorders. In addition, service and support for products sold by M.T.H. Electric Trains will be serviced by the current M.T.H. Authorized Service Center network. This includes part sales.

Products manufactured by ScaleTrains.com will be serviced by Product Support in Benton, TN.

For additional information, please contact Hollie Smith at Sales@ScaleTrains.com.

© 2021 ScaleTrains.com, Inc. ScaleTrains.com and Rivet Counter plus their respective logos are trademarks of ScaleTrains.com, Inc. M.T.H. Electric Trains is a registered trademark of M.T.H. Electric Trains, Columbia, MD.

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330-757-3020

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