Start small. A boxcar, something like that.
NO WAY they need to start in on the sizable investment it will take to get a locomotive out the door.
No, IMHO, they need to keep the start up costs DOWN and get a simple product to market quickly so as to build confidence among those in the S market that Scale Trains is indeed going to go places with their S scale line, as well as get a feel for production numbers.
So, again, IMHO: Whatever could be produced the quickest and cheapest in a new road name never before offered would be the way to go.
I can't help but feel it would be VERY encouraging to the S market to see product being shipped.
Just my thoughts.
Andre