Well after a bit of research I found these.
Now made in China?
It seems a digital crain has been outsourced to China.
I also found this
Märklin workers strike over job outsourcing
GÖPPINGEN, Germany, October 5th - Workers at Märklin brought production to a standstill after they went on strike in protest against planned job cuts. Half of the 400 employees affected by the cuts may be transferred from the main Göppingen production site to Sonneberg in eastern Germany and Györ in Hungary. Märklin is aiming to reduce costs by 15 percent. Restructuring has been prompted by competition from Asian manufacturers.
The world largest manufacturer of model railways, Märklin explains that it must diminish 400 of its 1,100 jobs in Göppingen to remain competitive. Assembly in Göppingen costs €2,200 per month, while Märklin pays only €350 per month in its Hungarian plant. By shifting certain production to other factories, Märklin is expected to save over tens of millions of Euros annually.
The East German model train competitor Piko, like many other German manufacturers, set the pace several years ago when it moved much of its production to China and Asia. Piko realized it had no choice, since more than 75% of all toys, including model trains, on the German market originate from "offshore," primarily from China, according to the German Toy Manufacturing Federation. Market leaders such Märklin have been finding themselves at a disadvantage. Since Piko began "co-manufacturing" with the Chinese, Piko has seen double-digit increases in sales and market share increased over 35%.
Other German toy manufacturers are moving in the same direction, especially for any extensive manual labor processes. It just makes economic sense. Nevertheless some German companies have held off shifting as long as possible, Märklin being one of those companies.
(Editor's note: Some of the Märklin / Trix USA models are outsourced to China, already. My Union Pacific freight cars, branded both Märklin and Trix, all have a little sticker on the car bottom or on their box that says "Made in China." To be competitive in the US market, this is a necessity, as virtually all quality American prototype model trains are now made in China and are priced less than Märklin or Trix. - Ryan Hoover)
In 2002, Märklin had half of the German market, where 70% of its products are sold. Total revenues were €170M, about $185M.
I guess if you want to stay in the business then you have to move to China
So Maerklin have half the German market, I wonder if Hornby have half the UK market?