Fleischmann Sold !?

It could be end for fleischmann.

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NUREMBERG - The German-Austrian model railroad Holding GmbH makes the Nuremberg competitors Fleischmann.

It upheld the tradition of Bavarian companies. The purchase price was not disclosed. The model railroad holding company has its headquarters in Freilassing in Austrian mountain home near Salzburg. The company is also the majority owner of the Fleischmann-rivals Roco. Behind the holding company, the Upper Bavarian businessman Franz-Josef Haslberger, with the dry mortar Hasit GmbH especially in the construction industry operates.

"With the new owners, we have excellent opportunities for growth," said Fleischmann Managing Director Hans-Peter Forester in a written message. For further economic perspective, the company was now a "solid financial base". From the previous owner family to senior chief Horst Fleischmann was yesterday no opinion more.

What impact the acquisition of Fleischmann on the staff, is still unclear. From insider circles was reported, however, that the model railroad holding parallel to the mark Roco wants to continue. The ongoing recovery plan at least financially declining company should also continue.

This provides, inter alia, the concentration of production at the plant Heilsbronn. The location Dinkelsbühl, with eight employees will be no chance of survival more acknowledged. Whether the headquarters in Nuremberg has a future, is considered open. Fleischmann currently employs approximately 340 employees, and most recently a turnover of 22.5 million €. Just a few days ago had junior chief Rolf Fleischmann announced that this year the long decline in sales the first time, should be stopped.

With Fleischmann loses the once large model train location Nuremberg to Arnold, Trix and LGB his last well-known independent producers in the industry. 1887 by Jean Fleischmann founded, the company initially tin toys such as ships and aircraft. 1938, the firm was also in Nuremberg established competitors Doll & Co., among other steam engines and electric cars already in the program.

1949 Fleischmann initially presented its own model railroad in size "0" before 1952, the company also available in the market today, the ones Gauge «» H0 (scale 1:87) einstieg - the final breakthrough. Since Fleischmann focused mainly on the model railroads and employed at the end of the 1970s and early 1980s more than 700 employees. The interim Author start of a race track-range but failed.

The only slowly abklingende current crisis of the model train industry since the late 1990s, however, covered the Nuremberg - losses and sales declines were the result. With the sale to the Model Railroad Holding ranks, the company is now one of a long series of other industries sizes, which this phase is not without help from outside survived.

So even survived leader Märklin few years ago only through the entry of the financial investor Kingsbridge. And the model railroad holding even rescued a few months ago the Austrian Roco final. The Fleischmann-rival incidentally stands today as bright - perhaps a positive omen.

QUOTE (80class @ 15 Feb 2008, 22:36) <{POST_SNAPBACK}>The Fleischmann brand will remain I'm sure, its worth to much to the owners for it not to. Roco were in a much worse financial state when they changed hands and look at them now.
Absolutely. If it must be sold, at least it is to the same people who rescued one company already! Much better than seeing vultures circling the auction of the remains of a dead company...

It is of course sad if jobs are lost in the factory in Germany but Fleischmann although producing very excellent models are competing with Roco and Trix (who recently said they would separate products from Maerklin slightly which adds pressure to GFM) who have already moved some/most production to Eastern Europe etc. If the number of "economically patriotic" Germans decreases then Fleischmann must accept it can't sell as many models at their current prices and must reduce some production costs or move further upmarket and become smaller, and there is no way round this. The cold light of day...

Family businesses are more likely to fail than others I suspect when it is time to adapt and evolve and next generation has to take over. Just because a father is a good businessman does not mean his son will be, or worse his five children who have a fifth share each and run the company by committee!

For example, I suspect that if the Quandt family of BMW (our favourite example on the forum used to capture the glory of the spirit of German engineering?) were actually running the company now, day to day, instead of just owning huge numbers of shares, there wouldn't be much of a company left in the maelstrom of global capitalism!

It seems Fleischmann just have not had the necessary capital to invest in much new tooling for several years now. The majority of 'new realease' have invovled fitting their existing range with Loksound decoders, they make a nice Talent unit though..

Although I currently only own 1 Fleischmann train, the Millenium ICE2 Set, they have a place in my heart as they were my first experience of 'continental quality'. I bought a Fleischmann E 103 Electric about 15 years ago, and just spent hours, days even watching it tick around my track with the precsion of a swiss watch. Nice lighting, cast metal chassis, compared to Hornby and Lima at that time it was a different world.
Before I switched to 3 Rail for my continental models, I had a Fleischmann Digital Start Set with the Twin Centre and a few other items.

I wish the best to their employees, but accept that without emulating Hag, there was almost no future for the company in the global market, what a sad situation really. Highlights in their product range must be their turntables and Profi track in HO and N gauge, plus a few recently tooled locos with modern drive mechanisms.

I wonder how this will affect John Hills, Fleischmann UK, a really nice chap who I have spoken with many times on the model railway circuit over the years. He has worked really hard to keep the brand profile high here in the UK.

Ashley

QUOTE (steventrain @ 15 Feb 2008, 20:17) <{POST_SNAPBACK}>It could be end for fleischmann.

Well, I have to disagree with you.

When this consortium took over Roco they were in a far more worse situation then Fleischmann is as of today.
Now look how Roco emerged out of it.
Just take a look at their 2008 new items, it sez it all.

Fleischmann was known to be in trouble. Generaly speaking ,in my honest opinion, they couldn't come up with any new item for years. It was old models refurbished over and over again and put into the shelves. It even could not get rid of its old motor while every other manufacturer is using 5 pole state of the art motors, let alone the 6 pin sockets for HO !

I think out of this sale a new healthy Fleischmann will emerge.

After the MaTrix will probably call it RocoFleisch - Rocman - Fleischco

Baykal

Just going thru some German forums to see the local reactions of the sale.

One German modeler pretty much sums it it all up, the reason of Fleischmanns downfall. I quite agree with him.

Babelfish translated:

Oh, what agitating praise singing! For me it is completely clear that Fleischmann overslept important developments totally: Dinosauriermotor (unbelievable, as if it would not have given advancement in the last 30 years!) Interface (holding at the isolated solution borders on arrogance) Modellpflege (20 years old models are almost unchanged in the catalog! 80% of the products became outdated.) Recruiting campaign (looks at you only the boring starting sets!) Price strategy (prices for age-old models are high-held artificial, shop guardian, no action models) I can only say that other manufacturers adjusted themselves substantially more bessser to the changes of the market. The consequence for GFN was foreseeable for me. Beautiful wheels are not sufficient today!

Hope this consortium will shapen things up for them as they did to Roco.

Baykal

Here's the Fleischmann press release from Friday:

"Press Information - February 18th 2008

On Friday 15th February, just three days after the end of the annual Nürnberg Trade Fair, the local newspapers announced the sad news that after 120 years of producing toys and models, the famous model railway company of Fleischmann - still in the hands of the grandsons, great grandsons and great grand daughters of the founding fathers - had been sold to the Austrian/German company of Modelleisenbahn Holding GmbH.

This company is under the ownership of the Bavarian Group, Haslberger (Freising). The same company is also the owner of the Austrian model train manufacturer, Roco.

As announced by the recently appointed, managing director, Dr Hans Peter Förster, the sale of the traditional Nürnberg company of Fleischmann is seen as an opportunity to give the firm a solid financial basis on which to create an exciting opportunity for innovation and future growth. Recent declining sales within a declining model railway market inside Germany, had seen turnover slump to € 22.5 million, of which 25% went to export, placing the company in third place behind the market leader Märklin and Roco.

The sale of the 120 year old family firm of Fleischmann in Nürnberg, Germany to Modelleisenbahn Holding GmbH, already the owner of Roco model railways from Austria, should be seen as a positive step to secure the future of the brand name.

The secure financial base which Modelleisenbahn Holding brings to the company
allows Fleischmann to continue to exist in its own right within the market and develop further exciting new projects and innovative models for the future.

The newly appointed managing director, Dr. Hans Peter Förster, who had been working within the Fleischmann company for many years, has overseen the transition from family ownership and has expressed his confidence in the future for the famous brand.

The brand name of Fleischmann with its reputation for quality will not be disappearing from the world of model railways.
Naturally, as one would expect, there will be several changes within the company and a pre-planned restructuring will now be implemented.

However, modellers and fans of Fleischmann should not be concerned. The extensive range of models, together with the recently announced new items for 2008 will still be available through the normal retailers.

Although the ownership of the company may have changed, it is still very much "business as usual" for the famous brand name of FLEISCHMANN.

We shall be keeping you informed with current information as the changes occur."

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