Atlas acquires Microtrains

[Olivani]

This is very good for Atlas, they just got rid off a strong competitor. You know, the competitor who sold us all these nice cars every month while we were waiting 2 years + for the ones from Atlas, we had to pre-order. I will certainly miss that   

Correction: I just read NSEGeorge's post, what he wrote certainly sounds very positive and promising. Fingers crossed it will happen ! 

[ridinshotgun]

I’ve talked with a few folks involved in the transition, and the plan from Atlas is to keep Micro-Trains going as its own brand — similar to what they’ve done with Atlas O. Some comparisons get tossed around, but every past situation had its own complications. With BLMA, the big issue wasn’t lack of interest; it was that nobody anywhere could etch those detail parts anymore. With Life-Like, a lot of molds were literally missing or incomplete after factory changes overseas. Those were production problems, not decisions to ‘drop’ anything. A series of former Life-Like motive power has been modernized and is in production again.
 
With Micro-Trains, their goal is different. Atlas is already talking with select MTL employees to see who’s interested in staying on, because they want continuity in the look, feel, and flow of the product line. They didn’t buy Micro-Trains just to park it — that wouldn’t make any sense. The whole idea here is to expand what Atlas can offer, not replace or erase anything.

A lot of us would love to see everything stay in the U.S., and that’s understandable. But there are reasons — some obvious, some behind the scenes — why that isn’t possible right now. What is true is that there are people inside both companies who care about Micro-Trains and are working hard to make this transition as smooth as it can be.

There will be a few months of ramp-up while things get sorted out, but the combined Atlas team — along with MTL folks who decide to continue — will be doing everything they can to keep product moving and keep the Micro-Trains name alive and well.

Thanks for the info George but really I have to question any business that makes these kind of deals and then claims it isn't their fault that things didn't work out even though they should be doing due diligence before committing to any deals like BLMA or LL.  Instead after the chips fall it always some excuse or reason outside of their control of why tings have to be the new normal.  I get it you have had a great relationship with MTL and probably hope that it continues for the sake of NSE but you also have to see the reality on the ground as consumers in an industry that has seen more than one fumble from the purchasing company to cause a contraction of the market due to loss of products that were available before they got their hands on them in some instances.

[squirrelhunter]

Color me skeptical, the fact Atlas has not made any improvements to the freight cars they got from LL/Walthers yet charges the same prices as their Master line releases tells me they, like Intermountain lack the working capital to improve their product line and have to sell what they can currently produce just to cash flow to keep things going.

A good example is the old Walthers Coil Car, it needs new, scake sized hoods and an etched walkway, not a total retool. But it the same car that first came out in the 90's and they charge just as much for them as the modern tooling.

Also, Atlas has an absolute mess of brands, Atlas O, Atlas Master, Atlas Trainman, BLMA, and now Micro Trains. If you are going to have multiple in house brands, at least make it clear what they denote, like ScaleTrains. At least Atlas O is clear enough.

[nkalanaga]

An injection molding tool can go anywhere there's a compatible press.  I could see the cars going overseas, as they require a lot of hand assembly. 

Most of the trucks and couplers, on the other hand, require little or no assembly, just package the parts.  Even the trucks don't have to factory-assembled, they're easy enough for modelers to put together.  Those could easily be made in the US, and will almost certainly stay on production.  Atlas knows that there's a LOT of demand for them.

Accumate couplers are "made under license" by Atlas, so probably paying license fees.  Most of the Atlas cars with Accumates will already accept MT 1015 couplers.  If Atlas owns the tooling for those, and most modelers seem to prefer them, it seems logical to start using them.

[robertjohndavis]

There’s little evidence for Atlas doing much with companies or tooling they have acquired.

I just made a large order of trucks from a favorite dealer tonight. Stock up. It’s gonna be a long winter.

Rob

[Iain]

Just made my single largest MT order ever. 

[sirenwerks]

Bet there won't be any new tooling for a while. Atlas will just milk the MTL stuff for releases. Dupes too - PS1 box, 2 bay offset hopper, PS2 covered hopper...

[InterurbanModels]

Not a good sign. Besides Bowser, MicroTrains was one of the last companies with significant production facilities and know-how in the US. Atlas is considered extremely unreliable when it comes to delivery promises and deadlines.

The US market is like collapsing right now, both in terms of demand and supply. In hindsight, my approach of wanting to manufacture everything myself, right down to the wheels (I still buy them), even making a sort of MTL "imitations," might actually be the right one...

[robertjohndavis]

The US market is like collapsing right now, both in terms of demand and supply.

What’s your source of data for those claims?

[mu26aeh]

Atlas is considered extremely unreliable when it comes to delivery promises and deadlines.

I think you meant the other A company, Athearn.  When was the last time Atlas had a mass cancellation notice ? 

[Steveruger45]

All good points raised by everyone.  I’m wondering if an element of tariff avoidance leverage is involved too.

[crrcoal]

So looking at NSE Georges’s comment above, if Atlas is entertaining keeping select MTL employees employed, why not just keep the whole operation going at it’s present location? It’s turn key. Just keep it going.

[MK]

Here's one for old times sake.

At last year's NSE National Convention at Bethlehem, PA.  Jumpei and Eric entertaining the guests at the banquet.  Good times were had by all!

[signalmaintainer]

I’ve talked with a few folks involved in the transition, and the plan from Atlas is to keep Micro-Trains going as its own brand — similar to what they’ve done with Atlas O. Some comparisons get tossed around, but every past situation had its own complications. With BLMA, the big issue wasn’t lack of interest; it was that nobody anywhere could etch those detail parts anymore. With Life-Like, a lot of molds were literally missing or incomplete after factory changes overseas. Those were production problems, not decisions to ‘drop’ anything. A series of former Life-Like motive power has been modernized and is in production again.
 
With Micro-Trains, their goal is different. Atlas is already talking with select MTL employees to see who’s interested in staying on, because they want continuity in the look, feel, and flow of the product line. They didn’t buy Micro-Trains just to park it — that wouldn’t make any sense. The whole idea here is to expand what Atlas can offer, not replace or erase anything.

A lot of us would love to see everything stay in the U.S., and that’s understandable. But there are reasons — some obvious, some behind the scenes — why that isn’t possible right now. What is true is that there are people inside both companies who care about Micro-Trains and are working hard to make this transition as smooth as it can be.

There will be a few months of ramp-up while things get sorted out, but the combined Atlas team — along with MTL folks who decide to continue — will be doing everything they can to keep product moving and keep the Micro-Trains name alive and well.

Good news indeed! I hope Atlas follows through; their history speaks differently.

[peteski]

Despite the rosy outlook from Ed K., and the info provided by NSE George, I don't have a good feeling about this takeover. 

Granted, I don't have any factual info about how healthy MTL was, but just look around you at all the takeovers and big mergers of non-model companies  which have been happening since the '80s, and it is not a very positive picture.

The outward signs seemed to indicate MTL was a healthy company doing their monthly releases and developing new products. Their support of the hobby in general (like backi g of the N-Scale Collector) was also very welcome by the hobbyists. MTL also had some excellent graphic artists and a technology to produce what I see as the best factory-applied weathering and other artwork. And of course their extensive line of small parts and  willingness of the staff to sell small items not in their normal list of stocked items was also commendable. Things that smaller companies excel at.

However none of us have any say in this, so all we can do is sit back and hope for the best.

As for the BLMA debacle, I think the excuse about etched products is BS.  There are plenty of companies which do chemical milling. Even MTL, Atlas, and many other model RR companies use photoetched parts in their current models.