Yes, MTH has said it would honor warranties. How else could they convince people to pay retail for new stuff? But, as pointed out by several tech repair people in this thread and elsewhere, MTH's capability of supplying parts and compensating those who do the repairs is in question. MTH remains tight-lipped about potential future plans, creating a swirl of speculation.
Might be best to buy new stuff with a credit card that offers purchase protection and extended warranty. Might not get your engine fixed, but it might get your money back.
Looks like MTH has yet again reaffirmed that Warranties will be honored through the ASC Network: https://mthtrains.com/news/686
Atlas To Purchase Select M.T.H. O Gauge Tooling Assets
Columbia, Maryland, March 17, 2021 --- M.T.H. Electric Trains has announced that it has sold a selection of its Premier O Scale molds to Atlas as part of its continued divestiture of tooling assets in light of M.T.H. President Mike Wolf's retirement later this year.
The selection of models includes diesel locomotives, freight cars, and passenger cars from the Premier line. In addition, a number of O Scale accessories from the RailKing lineup are included. Like the January 2021 Scale Trains tooling purchase of M.T.H.'s HO and S Gauge lineups, the Atlas purchase is only for the tools and molds of the selected items.
Since the announcement last Spring that M.T.H. President Mike Wolf would be retiring and closing down M.T.H., Atlas becomes the second model railroading company to purchase some of the vast tooling assets M.T.H. developed over the past 41 years. According to Wolf, "Atlas' longtime presence in the model railroading marketplace makes them a great place for these exciting models to now call home. Their decision to continue producing locomotives with Proto-Sound 3.0 makes Atlas a great destination for M.T.H. fans who've long appreciated the value found in these models."
A few of the models included in the sale were previously promoted under the M.T.H. brand in either uncataloged announcements or the 2020 O Gauge catalogs but have yet to arrive on retailer shelves. Those models will still be produced in M.T.H. branded packaging and will be supported, like all previous M.T.H. releases, by the M.T.H. Authorized Service Center network.