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Offline The Crocodile  
#1 Posted : 19 January 2024 15:10:07(UTC)
The Crocodile

Iceland   
Joined: 22/12/2019(UTC)
Posts: 111
Hello everyone

I decided to take a quick look at Märklin's annual reports and compile a summary. I could only find reliable reports as far back as 2004, so sadly I cannot look further back than that at the moment, if anyone knows where I can find reliable information on this, please do enlighten me.

Anyways, I decided to look at revenue, annual results, as well as the amount of permanent employees they have.

We can start with revenue, for those who don't know, revenue is the total amount of money a company earns from the sale of its products and services. It is, however, important to understand that big revenue does not necessarily equal big profit.
Marklin Revenue.png

At first glance, it may look like Märklin has been in a decline since 2004, with a growth starting again in 2018, however one must remember that Märklin has become a smaller, more streamlined company since the insolvency, decreasing their amount of products and their staff, meaning that the lower revenue was expected and planned for as the company shrunk in size. If one considers revenue in relation to the number of employees, the results become quite impressive in my opinion.
Marklin Employees.png

As you look at the annual results, the path that the company has chosen since the insolvency does indeed seem like a good one:
Marklin Annual Net Results.png
Note that, even though the revenues were very high in 2004, the company lost almost 15 million euros that year.

Another note regarding the annual results chart: there was a spike in income in 2011, the extraordinary income mainly resulted from derecognition of the Goldman Sachs/Hardt Group loans, the derecognition of the waiver of receivables by suppliers and employees, the derecognition of interest and receivables of the Pension Protection Association.

It is clear that Märklin has changed a lot as a company following the 2008 insolvency. Measures such as focusing on a smaller range of products, model and product policy re-examined, cancellation of products with too-low levels of profit margin, workforce reduction, uneconomical contracts terminated, limiting number of start-up sets to mitigate their lower profit margins, and closing of the Nuremberg site.

Other points as of the latest report:
  • The German market is responsible for approximately 61% of Märklin's revenue, with the rest of Europe being slightly above 26% and the rest of the world being 12-13%.

  • In the Märklin Group, Märklin itself makes up more than 70% of the group's revenue, with Trix and LGB being about 14-15% each.

  • Compared to 2010, LGB has almost trippled its revenue, going from only 5% of the Märklin Group's revenue to 14%

  • While the pandemic reignited interest in model railroading for a lot of people, the increase in prices of products to counter the increasing cost of material and logistics can lead to alienation of younger customers, which will have long-term negative effects


I wish I could find information on the market share for C-track vs K-track, but it's not clear in any of the reports I've read.

For those of you who knew Märklin and its products before the 2008 insolvency, how has the company changed since then, in your experience?
C-track, temporary layout. I try to run my locos as much as possible:)
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Offline marklinist5999  
#2 Posted : 19 January 2024 15:14:42(UTC)
marklinist5999

United States   
Joined: 10/02/2021(UTC)
Posts: 3,155
Location: Michigan, Troy
Still better than the Kingsbridge management years, and many compnies have fewer employees now, coming out of the pandemic, so overall, not too bad. Does the employee count include the Simba Dickie people involved with Marklin?
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Offline The Crocodile  
#3 Posted : 19 January 2024 15:36:22(UTC)
The Crocodile

Iceland   
Joined: 22/12/2019(UTC)
Posts: 111
Originally Posted by: marklinist5999 Go to Quoted Post
Still better than the Kingsbridge management years, and many compnies have fewer employees now, coming out of the pandemic, so overall, not too bad. Does the employee count include the Simba Dickie people involved with Marklin?


It does not explicitly say, however, as someone who's work partly consists of making head count reports at a large company, my best guess is that they are not included.

Included would be most likely be workers on Märklin's payroll only, and therefore also not include consultants and the likes.
C-track, temporary layout. I try to run my locos as much as possible:)
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Offline marklinist5999  
#4 Posted : 19 January 2024 16:46:22(UTC)
marklinist5999

United States   
Joined: 10/02/2021(UTC)
Posts: 3,155
Location: Michigan, Troy
That sounds logical Croc. So the skeleton crew in Goppingen for production, design, Gyor Hungary, and others abroad at national offices and repair, and a few consultants. China?
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Offline The Crocodile  
#5 Posted : 19 January 2024 17:46:30(UTC)
The Crocodile

Iceland   
Joined: 22/12/2019(UTC)
Posts: 111
Originally Posted by: marklinist5999 Go to Quoted Post
That sounds logical Croc. So the skeleton crew in Goppingen for production, design, Gyor Hungary, and others abroad at national offices and repair, and a few consultants. China?


I think any worker in China is merely a "contractor" as none of Märklin's subsidiaries are listed as being based in China, as far as I can find.

C-track, temporary layout. I try to run my locos as much as possible:)
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Offline ccranium  
#6 Posted : 19 January 2024 18:28:33(UTC)
ccranium


Joined: 30/11/2011(UTC)
Posts: 79
Location: Seattle area
Thank you, Croc! Interesting indeed!
Since you have compiled the data, would you mind posting charts reflecting productivity per employee (both revenue and results)? That can also indicate performance and trends.
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Offline Michael4  
#7 Posted : 19 January 2024 23:33:50(UTC)
Michael4

United Kingdom   
Joined: 02/02/2017(UTC)
Posts: 642
Location: England, South Coast
From a quick glance I would not be unhappy to be member of the management team. The period in question may have been painful but would appear to be justified.
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Offline Bryan  
#8 Posted : 20 January 2024 00:42:08(UTC)
Bryan

Australia   
Joined: 08/09/2010(UTC)
Posts: 211
Location: Bowral, NSW, Australia
Thank you Croc.

The stats you have are very revealing. Marklin have gone from a manufacturing company to a more of a design company and still kept their wow factor and charm. Quite obvious with your graphs shows these trends. The decrease in manufacture staff indicates for sourcing assembles from everywhere. Gone are the days of in house complete manufacture.

I can say that the design of Markin was the poorest in the Knightsbridge era. I repair Marklin and really know the brand technically which is my interest. I have in a BR24 2008 vintage loco and it is poor in design. It looks as though it was completely out sourced to China without any Marklin pedigree taken into account. The screws right through the assembly are completely different from anything pre or post, and self taping. Poor decoder with no functionality. And the snap together assembly prone to breakage on servicing.

Current Marklin design really appeals to me, having seen a few Flying Scotsman’s these are really state of the art. The sound in these, especially the whistles are a delight to hear. I think they have gone from 8 bit to 32 bit architecture over recent years with the decoders which comes out with the sound. Also the low fine speed control another great advance. Marklin have standardise design now with their top line locos. Decoder in the tender with speaker, supporting a front leiterplatte. This controls all the lights and dynamic smoke in the loco body. One the of the biggest improvements is the fine seperate details and making them more robust. They have gone from plastic to metal in a lot of instances lately.

Marklin always try and use heritage parts in new productions. The humble 7195 reverse springs seems to be used in the drawbars/couplings and the coupling rod pins never change. Also with disassembly, all come apart the same, with slight variations and no breakage, with great care mind you.

I may have got off track, however the design of their locos has gone back in house since Knightsbridge, a huge plus for their products. So from a technical view since Knightsbridge they have become state of the art and a delight to service on IMHO.

David
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Offline kiwiAlan  
#9 Posted : 20 January 2024 02:03:13(UTC)
kiwiAlan

United Kingdom   
Joined: 23/07/2014(UTC)
Posts: 8,110
Location: ENGLAND, Didcot
Originally Posted by: The Crocodile Go to Quoted Post

I wish I could find information on the market share for C-track vs K-track, but it's not clear in any of the reports I've read.


When I talked with Dieter Lorenz, a Marklin rep who came to the UK to run training courses through Gaugemaster, in the early 2000s, he reckoned that K track was about 10% of the H0 track market for Marklin. M track production had stopped at that point. I suspect the ratio is probably not changed that much.

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Offline Vinedusk  
#10 Posted : 20 January 2024 04:24:38(UTC)
Vinedusk

Australia   
Joined: 30/12/2023(UTC)
Posts: 34
Location: New South Wales
Originally Posted by: The Crocodile Go to Quoted Post
Hello everyone

I decided to take a quick look at Märklin's annual reports and compile a summary. I could only find reliable reports as far back as 2004, so sadly I cannot look further back than that at the moment, if anyone knows where I can find reliable information on this, please do enlighten me.

Anyways, I decided to look at revenue, annual results, as well as the amount of permanent employees they have.

We can start with revenue, for those who don't know, revenue is the total amount of money a company earns from the sale of its products and services. It is, however, important to understand that big revenue does not necessarily equal big profit.
Marklin Revenue.png

For those of you who knew Märklin and its products before the 2008 insolvency, how has the company changed since then, in your experience?


In 2008, I was not aware that Marklin even existed.

2015 and 2016 was the low point in terms of Markin's quality.
2021 and 2022 is the point where Simba Dickie's efforts start to bear fruit.

Another way of looking at this is that since the creation of the MHI in 1990, revenues appear to have dropped. According to the available statistics.
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Offline Bigdaddynz  
#11 Posted : 20 January 2024 05:32:48(UTC)
Bigdaddynz

New Zealand   
Joined: 17/09/2006(UTC)
Posts: 18,666
Location: New Zealand
Originally Posted by: Vinedusk Go to Quoted Post
In 2008, I was not aware that Marklin even existed.


The Marklin company was founded in 1859...

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Offline The Crocodile  
#12 Posted : 20 January 2024 11:46:11(UTC)
The Crocodile

Iceland   
Joined: 22/12/2019(UTC)
Posts: 111
Originally Posted by: ccranium Go to Quoted Post
Thank you, Croc! Interesting indeed!
Since you have compiled the data, would you mind posting charts reflecting productivity per employee (both revenue and results)? That can also indicate performance and trends.


I will look into it!

Originally Posted by: Bryan Go to Quoted Post
Thank you Croc.

The stats you have are very revealing. Marklin have gone from a manufacturing company to a more of a design company and still kept their wow factor and charm. Quite obvious with your graphs shows these trends. The decrease in manufacture staff indicates for sourcing assembles from everywhere. Gone are the days of in house complete manufacture.

I can say that the design of Markin was the poorest in the Knightsbridge era. I repair Marklin and really know the brand technically which is my interest. I have in a BR24 2008 vintage loco and it is poor in design. It looks as though it was completely out sourced to China without any Marklin pedigree taken into account. The screws right through the assembly are completely different from anything pre or post, and self taping. Poor decoder with no functionality. And the snap together assembly prone to breakage on servicing.

Current Marklin design really appeals to me, having seen a few Flying Scotsman’s these are really state of the art. The sound in these, especially the whistles are a delight to hear. I think they have gone from 8 bit to 32 bit architecture over recent years with the decoders which comes out with the sound. Also the low fine speed control another great advance. Marklin have standardise design now with their top line locos. Decoder in the tender with speaker, supporting a front leiterplatte. This controls all the lights and dynamic smoke in the loco body. One the of the biggest improvements is the fine seperate details and making them more robust. They have gone from plastic to metal in a lot of instances lately.

Marklin always try and use heritage parts in new productions. The humble 7195 reverse springs seems to be used in the drawbars/couplings and the coupling rod pins never change. Also with disassembly, all come apart the same, with slight variations and no breakage, with great care mind you.

I may have got off track, however the design of their locos has gone back in house since Knightsbridge, a huge plus for their products. So from a technical view since Knightsbridge they have become state of the art and a delight to service on IMHO.

David


The Knightsbridge era being 2006-2009/2010 or so?

And yes, I agree. Märklin has definitely placed itself firmly on the premium side of the market. The BR 05 insider of 2022 was insane to me, I still want one (hesitant due to reports of bad running characteristics on R1), it felt like it was miles ahead of everything else on the market with its dynamic smoke, light and sound functions, firebox glow etc.

Originally Posted by: kiwiAlan Go to Quoted Post
Originally Posted by: The Crocodile Go to Quoted Post

I wish I could find information on the market share for C-track vs K-track, but it's not clear in any of the reports I've read.


When I talked with Dieter Lorenz, a Marklin rep who came to the UK to run training courses through Gaugemaster, in the early 2000s, he reckoned that K track was about 10% of the H0 track market for Marklin. M track production had stopped at that point. I suspect the ratio is probably not changed that much.


Wow, that makes sense though. C-track alone is probably enough of a reason for a lot of people to pick Märklin/Trix over their competitors these days, I am thoroughly satisfied with every piece of C-track I own, even those that are now close to 18 years old. If anything, I can imagine the ratio is 95/5 C/K-track now.

Originally Posted by: Vinedusk Go to Quoted Post
In 2008, I was not aware that Marklin even existed.

2015 and 2016 was the low point in terms of Markin's quality.
2021 and 2022 is the point where Simba Dickie's efforts start to bear fruit.

Another way of looking at this is that since the creation of the MHI in 1990, revenues appear to have dropped. According to the available statistics.

Huh, I never heard that 2015 and 2016 would be low points in quality previously, but looking at the graph 2015/16 was indeed a low point speaking of the net results

Originally Posted by: Bigdaddynz Go to Quoted Post
Originally Posted by: Vinedusk Go to Quoted Post
In 2008, I was not aware that Marklin even existed.

The Marklin company was founded in 1859...


He probably means HE was not aware Märklin existed in 2008

C-track, temporary layout. I try to run my locos as much as possible:)
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Offline David Dewar  
#13 Posted : 20 January 2024 12:55:38(UTC)
David Dewar

Scotland   
Joined: 01/02/2004(UTC)
Posts: 7,344
Location: Scotland
I would need to see the full accounts in order to split up the balance sheet but as they appear be be showing a profit then at least we can keep buying from our favourite company. Reducing staff could result in more models leaving without being properly checked.
Take care I like Marklin and will defend the worlds greatest model rail manufacturer.
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Offline hxmiesa  
#14 Posted : 20 January 2024 13:06:54(UTC)
hxmiesa

Spain   
Joined: 15/12/2005(UTC)
Posts: 3,521
Location: Spain
Thanks for sharing!

Are the revenues adjusted for inflation?
Personally for me, the prices (Euro-zone) has gone up A LOT since 2004. -At least here in Spain.

See you later... -In a while...
Best regards
Henrik Hoexbroe ("The Dane In Spain")
http://hoexbroe.tripod.com
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Offline Pasquiles  
#15 Posted : 20 January 2024 20:03:15(UTC)
Pasquiles

Luxembourg   
Joined: 04/06/2019(UTC)
Posts: 28
Location: Luxembourg, Luxembourg
Thanks a lot for the post! Very interesting!

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Offline dickinsonj  
#16 Posted : 21 January 2024 01:08:30(UTC)
dickinsonj

United States   
Joined: 05/12/2008(UTC)
Posts: 1,686
Location: Crozet, Virginia
Originally Posted by: David Dewar Go to Quoted Post
Reducing staff could result in more models leaving without being properly checked.

I agree with you David. But I can definitely say that many models are already leaving Marklin without being properly checked.

I have to wonder if I will be able to detect any difference.

Where are you Tom? I know that you have something to add to this discussion.

Regards,
Jim

I have almost all Märklin and mostly HO, although I do have a small number of Z gauge trains!
So many trains and so little time.
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Offline Bryan  
#17 Posted : 21 January 2024 02:36:43(UTC)
Bryan

Australia   
Joined: 08/09/2010(UTC)
Posts: 211
Location: Bowral, NSW, Australia
There are two important factors which are very important to a model loco design.

The first is quality of design. As said before, it reached a low point under Knightsbridge. They just outsourced to China, with little design input, it seems. After Simba-Dickie it has improved dramatically and the best you can get.

The other factor is build quality, and this is not good compared with the models of yesteryear, granted. The basic problem now is complexity. For instance the new Flying Scotsman was sent in with a light problem. The cause was a broken socket on the front leiterplatte that supply the front lamps. This happened in manufacture. The basic problem is there is just so much in the boiler area. There is dynamic smoke, leiterplatte with 3 sockets for various lights in the loco. Also there is the motor with a wiring harness that goes to the decoder in the tender. Complex yes, it's modern design. The beauty of Marklin though, is they have a 30 plus service department and will fix it, no questions asked. Also their warranty work gets first priority.

David
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Offline The Crocodile  
#18 Posted : 21 January 2024 10:40:40(UTC)
The Crocodile

Iceland   
Joined: 22/12/2019(UTC)
Posts: 111
Originally Posted by: hxmiesa Go to Quoted Post
Thanks for sharing!

Are the revenues adjusted for inflation?
Personally for me, the prices (Euro-zone) has gone up A LOT since 2004. -At least here in Spain.

See you later... -In a while...


It is not adjusted for inflation! As you said, a lot has happened since 2004, and since the war in Ukraine started about 2 years ago, inflation skyrocketed.
Euroinflation.png

C-track, temporary layout. I try to run my locos as much as possible:)
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Offline Vinedusk  
#19 Posted : 23 January 2024 09:53:59(UTC)
Vinedusk

Australia   
Joined: 30/12/2023(UTC)
Posts: 34
Location: New South Wales
Originally Posted by: Bigdaddynz Go to Quoted Post
Originally Posted by: Vinedusk Go to Quoted Post
In 2008, I was not aware that Marklin even existed.


The Marklin company was founded in 1859...



Yes, apparently it was. I became aware of that sometime after 2008.
In the rather small sphere of my childhood, HORNBY was the dominant brand of trains. I doubt that there's any statistics to support that claim though.

Offline H0  
#20 Posted : 23 January 2024 10:09:24(UTC)
H0


Joined: 16/02/2004(UTC)
Posts: 15,268
Location: DE-NW
Originally Posted by: dickinsonj Go to Quoted Post
Where are you Tom? I know that you have something to add to this discussion.
We had similar discussions in the past.

A few years ago, the revenue per Märklin worker was about twice the revenue per Roco worker. Are Märklin workers really so much more efficient?
Never forget that Märklin is a reseller for third-party products in a large scale.
US citizens see the "Made in China" stickers on Märklin boxes that European citizens do not see.

With just above 200 blue-collar workers left in Göppingen, do not expect too much "Made in Germany" beside H0 gauge Insider models.
Regards
Tom
---
"In all of the gauges, we particularly emphasize a high level of quality, the best possible fidelity to the prototype, and absolute precision. You will see that in all of our products." (from Märklin New Items Brochure 2015, page 1) ROFLBTCUTS
UserPostedImage
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Offline marklinist5999  
#21 Posted : 23 January 2024 11:17:15(UTC)
marklinist5999

United States   
Joined: 10/02/2021(UTC)
Posts: 3,155
Location: Michigan, Troy
Roco ho is produced in Vietnam and Romania. I don't know about Fleischman N scale.
Offline Bryan  
#22 Posted : 23 January 2024 22:05:45(UTC)
Bryan

Australia   
Joined: 08/09/2010(UTC)
Posts: 211
Location: Bowral, NSW, Australia
"In the rather small sphere of my childhood, HORNBY was the dominant brand of trains. I doubt that there's any statistics to support that claim though."

Hornby was the leading brand of model trains prewar and post war up until 1964. This was mainly in the UK and in the old Commonwealth countries such as Canada, Australia, SA, and New Zealand. In its final days, 1960 to 1965 it was the state of the art model train design. It super detailed range of goods wagons was the most finely detailed series, with injection moulded bodies and die cast under frames. Also the die cast locos with ring field motors were the best in the industry. They even surpassed Marklin at this time, especially with the simpler DC control. Both Hornby (Meccano) and Marklin were very similar companies and even the pre-war Dublo was a copy of the pre war 00 Marklin. Both were the industry leaders in quality in their own markets. Dublo was never really big in Europe, Marklin was.

In 1954 the Lines Bros Ltd company bought out Rovex Ltd that produced a plastic Princess 00 train set for Marks and Spencers in the UK. This company called Tri-ang Railways grew incredibly fast under Richard Lines, a company director of Lines Bros Ltd. The urban myth was Tri-ang took over Hornby Dublo in the late 1950's. This is not so if you see the sales records of Hornby Dublo. It was huge up until 1961, Meccano's main source of income. Tri-ang Railways actually took over the Hornby O gauge clockwork series which demised in the late 1950's, another Hornby product by Meccano. The O gauge Hornby was priced at entry level and was far cheaper than Hornby Dublo and the same price as Tri-ang Railways. However the market did move on to the cheap Tri-ang electric train set.

Then, there was a model train recession in 1963-65 period and all the UK model trains manufactures went to the wall. This included Tri-ang Railways and Hornby Dublo. Tri-ang survived by producing the X04 motors for Scalextrix slot cars, another Lines Bros company. Meccano, including Dublo was sold to Lines Bros in 1964. Tri-ang Railways was rebranded Tri-ang Hornby and the quality Dublo tooling was transferred to Wrenn Ltd and also thus rebranded. So the current Hornby made in China is really the Tri-ang Railways made by Rovex in the 1950's, not Meccano Hornby.

Current Hornby is now in dire straights financially with negative profit basically for the last few years. At the start of 2023 they have again had a change of senior management. The brand lost sight of the market by out sourcing its entire production from Margate, Kent to China. It also relied too heavily on Chinese design and lost sight of the customer. Management then, treated the Hornby model trains like white goods really. They lost a lot of management that knew the market, the likes of Simon Kolher. They brought in marketing "experts" instead. It was way that Marklin was going under Knightsbridge before Simba-Dickie took over, thank goodness they did not.
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Offline kiwiAlan  
#23 Posted : 24 January 2024 01:29:05(UTC)
kiwiAlan

United Kingdom   
Joined: 23/07/2014(UTC)
Posts: 8,110
Location: ENGLAND, Didcot
Originally Posted by: Bryan Go to Quoted Post

...
Also the die cast locos with ring field motors were the best in the industry.


From the comments I hear bandied about over ring field motors I'm not sure that really is the case. I believe the magnets have a tendency to go very weak IIRC.

Originally Posted by: Bryan Go to Quoted Post

...
Current Hornby is now in dire straights financially with negative profit basically for the last few years.
...


For those in the UK there is a program series on UK TV at the moment by James May (of Top Gear fame, but also a model railroader, featured in recent series by Pete Waterman) on the troubles at Hornby. I haven't seen it yet.
Starts at 7pm on Saturday, BBC4, "James May's Big Trouble in Model Britain" first episode of two, repeats on Sunday



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Offline Bryan  
#24 Posted : 24 January 2024 03:03:32(UTC)
Bryan

Australia   
Joined: 08/09/2010(UTC)
Posts: 211
Location: Bowral, NSW, Australia
From the comments I hear bandied about over ring field motors I'm not sure that really is the case. I believe the magnets have a tendency to go very weak IIRC.

The ring-field motor introduce by Hornby Dublo (Meccano Ltd) in 1960 was a leading edge design. The engineer responsible was Ronald Wyborn, the Meccano chief electrical engineer. They were in reponse to Dublo's 1/2 inch motor that was designed by out source, previously. it was a copy of Tri-ang's X04 motor and was a disaster in heavy locos.

The ring-field was the first of the ring motors to be used in a model train. The main advantage was to stop cogging and retain magnetism. A few years later it was copied by Fleischmann for their locos. Also Tri-ang copied the design in their 1971 Evening Star tender drive loco. As for the loosing magnetism, Dublo used Alcomax type 111. This which proved far more durable than the Fleischmann/ Tri-ang Ferrite type material and had the advantage of being able to be re-magnetised if ever needed. The Ferrite types cannot be restored and do deteriorate. This is a problem with early Marklin/Hamo which used ferrite and now have the problem of not being able to be re-magnetised.

Also when you compare the Dublo ring-field motor with the Marklin flat comm motor in 1960 they are worlds apart. Marklin flat comms were a prewar design similar to Trix Twin. They were not up graded until the 3 pole DCM motors of about 1970 vintage. This led to the 5-pole High Efficiencies which I think are a superb design.
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Offline marklinist5999  
#25 Posted : 24 January 2024 03:26:35(UTC)
marklinist5999

United States   
Joined: 10/02/2021(UTC)
Posts: 3,155
Location: Michigan, Troy
I've seen the James May documentary on Hornby, Airfix, and the long model train tracks laid down to the old depot in southern England.
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