Fellow Forum Members - As I promised, I sent the letter below on December 31, 2017 to Lionel President Howard Hitchcock through the Lionel Gateway concerning Lionel's decision to abandon its industry-leading die-cast sprung trucks and couplers with hidden uncoupling tabs on its scale freight and passenger cars and replace them with inferior trucks and thumb tack couplers. In the letter, I quoted many of you without naming you or your screen names. Thank you for your terrific insights! I followed up with Mr. Hitchcock through the Gateway on February 3, 2018. To date, I have received no reply from Mr. Hitchcock, or anyone else at Lionel, not even the courtesy of an acknowledgement of receipt of my letter. To say the least, this is extremely disappointing and does not represent good customer service.
Mr. Howard Hitchcock
President, Lionel LLC
6301 Performance Drive
Concord, NC 28027
December 31, 2017
Dear Mr. Hitchcock:
I hope this finds you well and I wish you and the entire Lionel team a Happy New Year!
I have been a collector and operator of Lionel Trains for many years. I have spent many thousands of dollars on Lionel products over the years and plan to buy more Lionel products in the future. Indeed, I believe that I have been one of your most loyal customers.
Among my most prized possessions is my collection of Lionel PS-1 Boxcars. Indeed, I have purchased virtually every one Lionel has manufactured up to now. I also have most of the PS-4 Flatcars with PiggybackTrailers. I have also purchased hundreds of other Lionel Standard O Freight Cars and approximately 50 Lionel Standard O engines, including three versions of the Vision Line GG-1.
When you were named President of Lionel on April 18, 2014, you stated:
“The potential for growth and opportunity that have been a part of Lionel’s 114-year history is stronger than ever and being responsible for the continuance of that legacy is a role both Chris [Elrod] and I take very seriously.”
Great quote! It is for this reason that I am writing you today, as I wanted you to be aware of a recent decision that Lionel made, which I believe has placed your plans for growth in serious jeopardy.
For many years, going back at least to the early 2000s, for its Standard O Rolling Stock, Lionel has utilizing die-cast metal sprung trucks with hidden uncoupling tabs. These trucks and couplers have been touted by Lionel time and time again over the years, and rightly so, for their functional value and excellent appearance.
A couple of examples follow. In the Lionel Classic Trains Volume 1 2003 Catalog, on page 64, in describing the PS-5 Gondolas, Lionel stated: “The realistic die-cast operating couplers work smoothly magnetically and manually without a hanging ‘trigger-disc’ for a more prototypical appearance (emphasis added).” I could not have said it better. In the Lionel 2005 Train Catalog Volume 1, on page 80, in describing its Standard O Freight Cars, Lionel stated that such cars included: “Die-cast metal sprung trucks for improved tracking, especially through switches.” Again, spot on.
The Lionel Standard O Passenger Cars were equipped similarly for many years as well. For example, in the Lionel 2008 Train Catalog Volume 2, on page 84, in describing the Union Pacific 18” Aluminum Passenger Cars, Lionel indicated that the features included: “Die-cast metal sprung trucks with rotating bearing caps and operating couplers with hidden uncoupling tab[s].”
Recently, Lionel decided to abandon its industry-leading position and to migrate to vastly inferior trucks and ugly thumb-tack couplers for its Standard O Freight and Passenger cars. This was done with little fanfare and less than full transparency in your new Catalogs.
This decision caught virtually everyone by surprise. The majority of my colleagues who attended the October 2017 York Show were unaware of this change. What I found even more surprising, however, was that many of your top distributors who attended the Show were not aware of this decision either. Your distributors were rightly concerned about the potential resulting loss of business. This was a stunning decision, and a major step backwards for Lionel, in my opinion and the opinion of many others.
Exactly why this decision was made is shrouded in mystery. At the October 2017 York Show, I spoke to a young Lionel employee named Ryan Kunkle. Unfortunately, Ryan was very defensive about the decision to migrate to the inferior trucks and couplers and the rationale for it. All he could say was that it was done to accommodate 3RS and 2R collectors and operators, so they could change the couplers more easily, who he acknowledged constituted the very small minority of Lionel customers.
In terms of the potential impact on the vast majority of Lionel customers like myself and many others who loved the Lionel die-cast sprung trucks and couplers with the hidden uncoupling tabs that had been the Lionel standard for many years, what he specifically stated was: “If you don't buy any more Lionel freight or passenger cars, someone else will.” While I’m sure Ryan is a fine young man, that was a terrible attitude to demonstrate to any customer, and far worse to a longstanding and loyal customer like myself.
In response to another question I asked, Ryan admitted that Lionel had not done any market research or conducted any surveys of their customer base or distributors before making this decision. While I admire Ryan’s candor, as someone who has worked with marketing and sales organizations my entire career, the failure to conduct any due diligence before making such a significant change to a longstanding and highly successful business model, and the failure to recognize the significant risk of potentially disenfranchising the overwhelming majority of Lionel's loyal customer base and distributors was absolutely shocking.
Clearly, Lionel has made a major mistake by abandoning one of its greatest innovations over the years and one that the company has rightly touted for many years as ground-breaking and best in class, namely, its die-cast sprung trucks and couplers with hidden uncoupling tabs, and replacing them with inferior and ugly thumb tack trucks and couplers. This has disenfranchised the vast majority of the company’s distributors and customers for the very few 3RS and 2R group who wish to switch the couplers to Kadee couplers. This makes absolutely no sense.
Candidly, I suspect that the real reason Lionel made this move was to save money by switching to these new inferior and less functional trucks and couplers. However, if cost was the issue, the far better approach would have been to simply increase the price of the Standard O Freight and Passenger cars. Customers will always pay a little more for quality. Another approach would have been to limit this change to the Lion Scale line of products only.
Unfortunately, bur predictably, many of the individuals who I spoke to at the York Show, and many others who participate on the O Gauge Forum, have indicated that they will not buy any Lionel freight or passenger cars that contain these new inferior trucks and couplers. Count me as one of those. Believe me, I would love to purchase some of the new Lionel PS-1 Boxcars, PS-4 TOFCs with the 40 foot trailers, and passenger cars, but that will never happen unless Lionel reverses course and manufacturers them with die-cast sprung couplers with hidden uncoupling tabs.
I thought it might be worthwhile to include for your review a sample of the comments that appear on the O Gauge Forum on the thread: “Lionel Thumb Tack Couplers.” They are eye-opening.
“Kinda ridiculous. ‘Let's equip the cars with thumb tack couplers so folks can remove them more easily anyway.”
“I was just at Nicholas Smith trains this past week and saw the cars with the new trucks. Ugly, ugly, ugly. Most of the truck is now plastic! Only the bolt on sides are die-cast, as is the coupler itself. As others have mentioned, it is no longer a sprung truck. The springs are in a fixed holder and are just for show. No more Lionel car purchases for me.”
“It’s not so much the couplers as the garbage trucks. This new truck looks like crap and if they’re gonna put the same junk on the passenger cars they can keep em and I have quite a few on order.”
“IMO Lionel’s best trucks are the ones offered on their steel-sided reefers for the last several years. Die cast, hidden uncoupling tabs, and sprung trucks that actually function. They practically roll around the layout by themselves.”
“The new Lionel thumb tack couplers are incredibly UGLY and represent a major step backwards for Lionel. Agree also that the decision to accommodate the 3RS and 2R group, while disenfranchising the vast majority of Lionel buyers, makes absolutely no sense. Indeed, it is one of the worst decisions I have ever seen in the model train industry (it reminds me of Coca-Cola's decision a number of years ago to change Coke's formula, and we all know how that turned out). If you want to really see how ugly these couplers are, take a look at them on the beautiful new passenger cars Lionel is just coming out with. Finally, like many of the posters here, if Lionel does not come to its senses and reverse this disastrous decision, I will not buy any of their new freight or passenger cars.”
“I'm in the 3RS camp and everything gets Kadee's. If their marketing was aimed at getting more 2 rail scale modeler or 3RS guys to buy their cars because converting them was easily done. They should have done a little more research. Their bread in butter is the traditional 3 rail hobbiest. Keeping them happy should be priority one.”
“You should first keep your main customers happy and buying. Before I started converting. I thought Lionel had the best truck coupler setup. Scale modelers will figure out how to get the trucks right and the couplers mounted if they want the car.”
“Hopefully, this terrible decision will be reversed very soon. Otherwise, you can expect Lionel sales to plummet.”
“I won't have any problem with the new Lionel freight cars with the inferior trucks and thumb tack couplers, as I won't buy any.”
“I think the new couplers are a giant step backwards. Lionel's scale cars were, IMHO, almost perfect before the change. I will not buy any of the new ones.”
“To me, and despite Mike R's explanation/rationalization in that old thread, Lionel did not need to make the change to a "one-size fits all" approach to its truck and coupler design for all of its scale-sized cars.
Instead, Lionel should have purchased the tooling and/or production rights (word on the street it's still available) to the tried-and-true Weaver 3-rail die-cast sprung trucks with half-moon disc uncoupling tabs and the die-cast 2-rail trucks.
Then, they could have continued to offer the "Weaver" 3-rail trucks & couplers on the not-as-detailed LionScale cars. It's what former Weaver 3-rail customers were accustomed to anyway! As for the 3-rail scale folks wanting to add Kadees, they would simply remove the claw coupler while keeping the die-cast truck...just like they've always done.
And they could have continued to offer their own line of highly-detailed scale cars with their really nice hidden-tab trucks/couplers--with zero risk of confusing assembly line workers regarding which truck/coupler combo (Lionel or Weaver) they needed to use on which cars since since the two lines of cars were built in separate locations--the former Weaver (now LionScale) in the USA, and the Lionel scale cars overseas.
Sometimes (yes, just sometimes ) there's no need to change a good thing!”
“It would have made almost as much sense to offer the cars with no couplers at all.”
“Thumb tacks are hideous my opinion based on the fact they look terrible.”
“Yuk the thumb tacks really ruin a otherwise great looking car. Lionel please bring back the hidden tab couplers.”
“I think the bottom line with this issue will be lost sales. It's not the end of the world, but it's the end for me buying Lionel freight cars.”
“For me and many others placing the new un-sprung composite truck with it's fixed knuckle and large hanging thumbtack on Lionel's new era fully detailed scale freight car is not an improvement. It would have been easier to just let the scale coupler guys who wish to modify their equipment cut the large knuckle off.”
“The only good news is the Lionel dealers have plenty of old new stock to fill in the gaps to our collections, until Lionel comes to its senses. That is virtually certain to happen, as their sales take a nose dive.”
In closing, there is still time to reverse this ill-advised decision, and resume producing the Lionel O Scale Freight and Passenger Cars with the classic die-cast sprung trucks with hidden uncoupling tabs. Hopefully, that will occur very soon for the good of Lionel, your customers and your distributors.
My apologies for the length of this letter, but I thought it was important to present you with a complete picture. I look forward to hearing back from you. Thanks.
Sincerely,
Patrick J. Caulfield
TCA #02-54929
Member - O Gauge Forum