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Post by stevewagner on Dec 16, 2014 12:31:48 GMT -8
At about 2:12 p.m. EST today Atlas e-mailed the following to those of us who subscribe to at least one of their newsletters: "378 Florence Avenue, Hillside, NJ 07205 Phone: 908-687- 0880 Fax: 908-687-8857 www.atlasrr.com www.atlaso.com " An Open Letter to Atlas Dealers, Distributors and Consumers December 16th, 2014 "Dear Atlas Customers, "In this season of caring, giving and hope, I would like to sincerely thank you all for the past and continued support you have given to Atlas Model Railroad Company during recent turbulent times. "As many of you know, Atlas dissolved its relationship with a primary overseas supplier due to their request for excessive, across the board price increases. These increases would have placed Atlas and our dealers and distributors in a no-win competitive position, resulting in more severe business disruption, and potential business failure for Atlas. We, of course, could not allow this to happen. "Following this decision, Atlas needed to transfer thousands of its proprietary molds and tools from multiple factory and warehouse locations to multiple new supplier locations. This was easier said than done. Mold transfers were delayed, incomplete, damaged, etc., which necessitated Atlas to remake needed molds and tools, acquire new machinery, and in some cases go through a steep manufacturing learning curve. "The chosen path, while painful for Atlas and our customers, has eventually allowed Atlas to reconfigure its supplier base and resulted in a stronger and wiser Company. At this point in time, Atlas is close to the healthy production levels reached prior to market disruption. Dealer and distributor fulfillment is currently averaging 70% and many of our products are at much higher levels. 2015 will be better, as our new suppliers work smarter and more productively to deliver needed products. "Let me be crystal clear regarding any rumors about the imminent demise of Atlas Model, Atlas O, and our products. Setting aside the wishful thinking of a few competitors, these rumors are baseless and without merit. I will admit that some of the O scale product re-development efforts were more difficult than some of the N & HO. This was caused by complex and lengthy re-creation of needed molds and tools, as well as the additional opportunity to upgrade all 2 & 3 rail switches. Be assured that the added time to market for any Atlas product is well worth the effort. "Atlas has re-established consistency in the production and shipment of HO & N track and accessories, and a 100% effort is now being given to O scale 2 & 3 rail track and accessories. We are totally committed to the complete return of all scales in all categories, including rolling stock, locomotives, track and accessories. The overwhelming majority of all Atlas product categories in every scale have had molds and tools fully restored to equal or better quality. Initial production and reproduction is proceeding on schedule, and an active new product development plan is being carried out. "The resolution of the above situation could not have occurred without the hard work and dedication of all Atlas team members, as well as the understanding and continued loyalty and support of our customers. I sincerely apologize for the effects this disruption may have caused your business and, or hobby pursuits, and I look forward to increased mutual development and growth in this great hobby of model railroading both now and in the immediate future. "Happy Holidays to All, "Thomas W. Haedrich Executive Chairman Atlas Model Railroad Co. Inc." I'll add that, at least as of today, the Atlas website has photos of actual models in all the [fictional] paint schemes of the forthcoming run of HO contemporary steel coil cars estimated to arrive in 2015 Q1. The new run of HO pulpwood cars in the container due to reach Atlas in New Jersey this month do have the newer, more realistic version of the pulpwood load and, for the first time, all the grab irons pre-installed. I've sold off several of my older pulpwood cars to buy two of the new ones.
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Post by atsfan on Dec 16, 2014 12:49:17 GMT -8
Grab irons installed in those cars is joyous. I hope Atlas gets back to new products.
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Post by TBird1958 on Dec 16, 2014 13:04:01 GMT -8
That's nice to read, glad they have things working in their favor now - It's also encouraging that they feel strongly enough about Model Railroading as a hobby in terms of investment of dollars. Yay Atlas!
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Post by stevewagner on Dec 16, 2014 13:04:45 GMT -8
Seriously, I think the Atlas heavyweight coaches, in both "single window" and "paired windows" styles, that finally arrived this fall after a lengthy gestation period, can fairly considered to be new products. Yes, they're based on the former Branchline Blueprint kits, but with better wheels, and preassembled as a great many customers prefer. Personally, I like decorated kits best -- since I have no convenient place to paint models myself -- but I'm glad to have the ready to run cars. And the coach, which was Branchline's first passenger car kit, was notoriously harder to assemble than the various sleepers in their line, at least some of which I think Atlas will ultimately be producing in preassembled form.
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Post by The Ferro Kid on Dec 16, 2014 13:12:40 GMT -8
Seriously, I think the Atlas heavyweight coaches, in both "single window" and "paired windows" styles, that finally arrived this fall after a lengthy gestation period, can fairly considered to be new products. Yes, they're based on the former Branchline Blueprint kits, but with better wheels, and preassembled as a great many customers prefer. Personally, I like decorated kits best -- since I have no convenient place to paint models myself -- but I'm glad to have the ready to run cars. And the coach, which was Branchline's first passenger car kit, was notoriously harder to assemble than the various sleepers in their line, at least some of which I think Atlas will ultimately be producing in preassembled form. I agree. But I still have about two dozen Branchline passenger kits of various roads to assemble. Mostly Pullman, but some coaches. It's an incentive to live long...
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Post by stevewagner on Dec 16, 2014 13:18:53 GMT -8
Ferro Kid, I'm with you! I have six Branchline Blueprint express reefers, eight coaches, fifteen sleepers, 39 boxcars and seven freight reefers yet to assemble, and I'm five years older than you are!
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Post by carrman on Dec 16, 2014 13:19:43 GMT -8
Well, lets see something new then. All new. With a decent motor.
Dave
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Post by middledivision on Dec 16, 2014 14:20:17 GMT -8
Well, lets see something new then. All new. With a decent motor. Dave Yes. The latest version Gevos or a U25C would be a nice start.
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Post by dti406 on Dec 16, 2014 14:43:58 GMT -8
Ferro Kid, I'm with you! I have six Branchline Blueprint express reefers, eight coaches, fifteen sleepers, 39 boxcars and seven freight reefers yet to assemble, and I'm five years older than you are! Well the boxcars and freight reefers only take about a half hour each to build, so the 46 will take about 23 hours to finish! Rick J
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Post by markfj on Dec 16, 2014 15:43:44 GMT -8
A well-written letter that is clear and to the point; kudos to Mr. Haedrich and the Atlas team for not taking the easy way out and closing the business when things got tough. To echo what others have already implied, now Atlas needs to release a new “show stopper” product that will help them regain their high quality ranking and good reputation in the industry.
I’m not sure what product that should (or could) be, but it seems like new locomotives always grab the most attention.
Thanks again Atlas, we’ll be looking forward to 2015 with you. Mark
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Post by steveturner on Dec 16, 2014 16:14:40 GMT -8
New products or not .Atlas units are by far the best i have in terms of overall quality especially in the running department. I have no new products so cannot speak to that. I gather from what i read its been a real crap shoot for model railroad companies getting items mfg in China. Production delays , quality issues and so on including costs.Overall i do not think Atlas does anything second rate and my past experience has been they in the past have been small enough to look after their customers . I am sure its a tough business for anyone tobe in. The hobby in general has come along way since the blue box which by the way for a change of pace i still enjoy.Steve
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Post by Deleted on Dec 16, 2014 16:37:28 GMT -8
Yet no distributors have code 100 turnouts. Some product that are staples have expected in dates of April and June. Healthy maybe, optimistic possibly, full of BS definitely.
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Post by Brakie on Dec 16, 2014 16:55:25 GMT -8
New products or not .Atlas units are by far the best i have in terms of overall quality especially in the running department. Snip! Steve,I fully agree..I have several Atlas Yellow and red box locomotives that runs as good as the day they left the factory.
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Post by mlehman on Dec 16, 2014 17:29:02 GMT -8
I'm sure that letter is a relief to a lot of customers and shops who depend on Atlas, especially regarding track. Sounds like some pretty tough sledding. While new stuff is always good, I think the conservative approach Atlas has taken with new products in recent years has been largely dictated by having a full plate with these issues. And if you don't have a quality manufacturing environment for product you already have and are known qualities to produce, it's awful hard to pitch the boss on adding new stuff to the mix. It's good to know this will soon be simply an unhappy memory, rather than an ongoing crisis
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Post by carrman on Dec 16, 2014 17:32:23 GMT -8
A well-written letter that is clear and to the point; kudos to Mr. Haedrich and the Atlas team for not taking the easy way out and closing the business when things got tough. To echo what others have already implied, now Atlas needs to release a new “show stopper” product that will help them regain their high quality ranking and good reputation in the industry. I’m not sure what product that should (or could) be, but it seems like new locomotives always grab the most attention. Thanks again Atlas, we’ll be looking forward to 2015 with you. Mark They could do an easy as pie U33B and I'd be happy. Dave
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Post by atsfan on Dec 16, 2014 17:59:58 GMT -8
A well-written letter that is clear and to the point; kudos to Mr. Haedrich and the Atlas team for not taking the easy way out and closing the business when things got tough. To echo what others have already implied, now Atlas needs to release a new “show stopper” product that will help them regain their high quality ranking and good reputation in the industry. I’m not sure what product that should (or could) be, but it seems like new locomotives always grab the most attention. Thanks again Atlas, we’ll be looking forward to 2015 with you. Mark SD40-2 The logical choice
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Post by atsfan on Dec 16, 2014 18:00:58 GMT -8
Yet no distributors have code 100 turnouts. Some product that are staples have expected in dates of April and June. Healthy maybe, optimistic possibly, full of BS definitely. I switched to Peco. A better product. And available.
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Post by drolsen on Dec 16, 2014 18:29:36 GMT -8
To echo what others have already implied, now Atlas needs to release a new “show stopper” product that will help them regain their high quality ranking and good reputation in the industry. My vote is for a comprehensive AC4400CW model, covering all phases / variations as a natural follow-on to their excellent Dash 8s. Athearn's model is a bit dated, and Kato's doesn't cover all the major prototype variations. I'm still waiting for that "Genesis quality" AC4400CW to supply the dozen CSX units I'll need. I'd suggest a Dash 9 (including the NS 9-40CW variant) if the AC is successful, holding off on that one only to see how the MTH version is received. Dave
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Post by cellis231 on Dec 16, 2014 19:14:12 GMT -8
To echo what others have already implied, now Atlas needs to release a new “show stopper” product that will help them regain their high quality ranking and good reputation in the industry. Mark A correct RSD-12 is high on my list.
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Post by The Ferro Kid on Dec 16, 2014 19:53:05 GMT -8
Correct RSD-12 would be nice, as would be a correct C30-7.
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Post by stevef45 on Dec 16, 2014 20:35:21 GMT -8
anyone know where they moved there molds/tooling too?
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Post by Judge Doom on Dec 16, 2014 20:38:28 GMT -8
Well, we know one of the places is the same factory Bowser and IMRC are using...
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Post by Gary P on Dec 17, 2014 4:43:47 GMT -8
I was happy to see the communication from Atlas. They seem to be pretty up front about things, without bashing others too much. They worked through their issues, and plan to be back strong. A welcome return to what is hopefully a prosperous adventure for them, and good for us.
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Post by WP 257 on Dec 17, 2014 5:39:51 GMT -8
I am told that Atlas has an established track record, going back over their whole history, of playing nice with the other manufacturers. They always keep their comments about other companies respectful, and pretty much everybody else generally respects them for being a class act company. I know in at least a few instances they have warned another manufacturer, well ahead of any public announcement, that a certain model was going to be produced--thus saving the other manufacturer wasted time and money. This ability to get along well with others does serve Atlas well.
I most certainly wish Atlas the best, as I have generally purchased more of their engines than from the other guys.
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Post by Great-Northern-Willmar Div on Dec 17, 2014 6:11:16 GMT -8
Wish them the best, but with anything out of China only time will tell. Also, can it get any worse? Atlas was in a bind and the only way was up. Looks like so far they are climbing out of the dark hole they found themselves in not too long ago.
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Post by bar on Dec 17, 2014 7:44:35 GMT -8
I can't remember ever seeing a statement like this from a consumer products company. Atlas likely tried to find a buyer, failed, and must now make good on its bank covenants. Plus, the family needs a place to work. Atlas has slipped into also-ran status and may never be able to recapture its former place in the market.
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Post by stevewagner on Dec 17, 2014 9:56:57 GMT -8
Photos of actual models from the forthcoming new run of NSC 50' boxcars are now (Wednesday, December 7, c. 12:55 p.m. EST) posted at www.atlasrr.com . Four of the new paint schemes are on 5111 cu. ft. cars, which Atlas hasn't produced before. If I can swing it, I'll want to get one CP and one QC car to run behind D&H locos c. 1980.
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Post by WP 257 on Dec 17, 2014 11:12:55 GMT -8
I can't remember ever seeing a statement like this from a consumer products company. Atlas likely tried to find a buyer, failed, and must now make good on its bank covenants. Plus, the family needs a place to work. Atlas has slipped into also-ran status and may never be able to recapture its former place in the market. I'm going to keep my response here respectful. For one thing, in the model trains industry, one does actually see letters similar to Atlas's letter every once in awhile. There is nothing new under the sun. I thought it was well written and basically just an end of year thank you--next year will be better letter...typical of model train pr. It seems you may not be fully aware of the history of model train manufacturing. Atlas has most certainly ridden through all kinds of things in the past 70 years or more that they've been in the hobby, and has in fact outlasted many dozens of other former model train manufacturers (Bowser alone has purchased or otherwise acquired something like 20 former train manufacturing companies at last count). Atlas is a class act, and they will be just fine. Even in their current state, they are far from also-ran status. They are still bigger than several others.
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Post by Spikre on Dec 17, 2014 13:25:48 GMT -8
?? have read that in the late 40s,50s and 60s that Atlas did contract work for Lionel. have always wondered if Atlas made the Lionel Super O Track from the late 50s into the mid 60s. any one know ? Spikre ??
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Post by Deleted on Dec 17, 2014 13:44:02 GMT -8
I am happy to see Atlas pulling itself up and forging ahead.
I would like to see them step up their design concepts. They need fresh blood in there to kick them in gear and put out some really good competitive models. Wish I could help them, but I know they will not be asking. As a project manager, I know I could put them head to head against Athearn.
I do look forward to see what new they may be working on.
OK, back to modeling.
Brian
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