Any sale of AF products would be money in there pocket no matter where it
comes from. To compete with one's self is the American way. Look at the
divisions of GM, Ford etc. They don't just sell a cars with one wheelbase...


There would be some "O" converts would but the new money would be from the
HO converts if they went into it whole heartedly.

IMHO,
Carl  

-----Original Message-----
From: Robert Jackson [mailto:[EMAIL PROTECTED]]
Sent: Sunday, January 05, 2003 7:51 PM
To: Don Thompson
Cc: [EMAIL PROTECTED]; [EMAIL PROTECTED]; [EMAIL PROTECTED]
Subject: [S-Trains] Re: [S-Scale] Re: stealing the S-gauge market?


Don Thompson wrote:

> Dear Steve,
>     I think you are confused.  I do not consider what we here at SHS or
> Ron and his family at American Models to be stealing the S-gauge market
> from Lionel.  I know we are all working hard to make the best trains
> possible for our S gauge customers and I think if you look at our market
> share, our customers agree (today can you say that about LTI's AF
> line?)..   If anything, they are neglecting the S gauge market and due
> to that, SHS and AM has been able to make these inroads.  The market is
> evolving in all scales and the top dog in 0-27 has been asleep at the
> switch (ask MTH).   I am sure they are now awake and hopefully will
> start to add quality products to their S gauge line.
> Don Thompson

I certainly agree with the essence of this statement.  A number of years
ago, I wrote that it was not
reasonable to expect that LTI would enhance AF despite the fact that they
had purchased it.  It seemed clear
to me that to continue with serious development of AF would clash with its
O-27 development.  The latter was
better established and was bread and butter for LTI.  So what did they do?
For years they produced re-runs
of old AF equipment and gradually morphed that operation into collector
oriented production.  The NASG
helped them in that connection, though probably unwittingly, by each year
sponsoring an AF car or two which
could only be obtained by NASG members.  That contributed materially to the
membership of the NASG, but did
little for furthering AF development.  The "modern" S gauge market was
almost exclusively developed by S
Helper and American Models.  Perhaps LTI is awakening to the pontential of
the S gauge market, but don't bet
on it.  S gauge is and will always be serious competition for O-27.  There
is no reason for LTI to compete
with itself.
     Bob Jackson


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