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The ATLAS O scale Evans Product plug door box cars have molded in doors.

The PREMIER O scale Evans Products double plug door box cars have operating doors.

Most of the real railroad paint schemes have been made.

The regular WISCONSIN & SOUTHERN scheme has not yet been produced.

The PREMIER version is more durable and that factory is up and running, so that box car would be made there instead.

Andrew

We won't ever know, but it would be interesting to know the terms of the agreement.  Seems unlikely to me a big capital expenditure was involved, given the state of the market. I'd guess this is a licensing agreement that allows Atlas to produce MTH products at the Chinese factory or factories currently producing these products.  Based upon production numbers, not outright purchase of tooling most likely.  Thus if the first production runs don't do well, we may not see much in future.  Just a consideration for those who want to see this succeed. Buy the first production runs if you want to see future production runs. Not rocket science .

A longtime fan and customer of 3rd Rail, I'd be surprised to see Scott pick up MTH steam.  Scott's always been into brass, with few die-cast offerings.  Certainly within the realm of my interest, he's done in brass most of the locos that MTH has done in die-cast.  While there would be a significant opportunity in the second-tier market with the RailKing steam tooling, that's not the market that 3rd Rail concentrates on.  The opportunity for 3rd Rail is increased quantities on the items they do, not alternative product that could detract from the resale value of what they've sold and irritate customers.

@Landsteiner posted:

We won't ever know, but it would be interesting to know the terms of the agreement.  Seems unlikely to me a big capital expenditure was involved, given the state of the market. I'd guess this is a licensing agreement that allows Atlas to produce MTH products at the Chinese factory or factories currently producing these products.  Based upon production numbers, not outright purchase of tooling most likely.  Thus if the first production runs don't do well, we may not see much in future.  Just a consideration for those who want to see this succeed. Buy the first production runs if you want to see future production runs. Not rocket science .

This isn't a licensing agreement.  The exact wording from the press release is:

"Hillside, NJ – Atlas Model Railroad Company, Inc. is proud to announce the purchase of a variety of tooling in the M.T.H. Premier O Scale Locomotive and Rolling Stock lines from M.T.H. Electric Trains of Columbia, MD."



What Atlas did license is the Proto-3 electronics.

Rusty

Last edited by Rusty Traque

"This isn't a licensing agreement."

You're correct. What I should have written is that I'm guessing Atlas has"purchased" the exclusive rights to use the MTH tooling.  And that the purchase agreement isn't likely a straightforward capital acquisition but rather a royalty per use to avoid upfront expenditure of millions or tens of millions of dollars to literally purchase the tooling rather than the rights to use the tooling.  Licensing is not the correct term for what I'm guessing is happening.   At least  that's what I'd do to minimize risk in case the market isn't there for adequate volumes. 

There's a good bit of uncertainty which will only be clarified when Atlas announces its intentions. And those may change over time and experience.   One or two locos to begin with?  An actual catalog?  DCS, TMCC or both?  The devil is clearly in the details here.

I see steamers going 3rd Rail. As stated, Railking to bachman, the rest going to Lionel. The DCS components and controls will be owned by the mth employees who agreed to buy it as originally announced.

While 3rd Rail would be a good landing spot for some of the steam, I'm not sure that Scott would be all that interested in opening that can of worms.

@Landsteiner posted:

We won't ever know, but it would be interesting to know the terms of the agreement.  Seems unlikely to me a big capital expenditure was involved, given the state of the market. I'd guess this is a licensing agreement that allows Atlas to produce MTH products at the Chinese factory or factories currently producing these products.  Based upon production numbers, not outright purchase of tooling most likely.  Thus if the first production runs don't do well, we may not see much in future.  Just a consideration for those who want to see this succeed. Buy the first production runs if you want to see future production runs. Not rocket science .

I think the truly under-valued aspect of this deal is Atlas' acquisition or access to the MTH production facilities.  A few years ago, Atlas acquired a number of Weaver molds, tooling, and products - we've yet to see anything from that.  Maybe the access to MTH factories will actually result in shipping product (what a concept!  ).  So far, Atlas has only demonstrated their ineptness in this regard.

As for acquiring DCS, I've no idea why they would spend money on that. To my mind, it would be a much smarter move to offer the very pretty MTH locomotives as either conventional ("command ready") or TMCC equipped.

I doubt that Atlas' or anyone else's TMCC licensing agreements with Lionel expressly prohibit the licensee from acquiring a competitive train control system, but annoying Lionel in such a way doesn't strike me as particularly advantageous.

George

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