It's hard not to be impacted by these facts. MPC did good, but MPC did bad; and when bad they were apathetic. It rubbed off
Hi Adriatic... i was active in MPC from 1972 to 1983... during that time, i saw a struggling Lionel get up off the ground, get to its knees, then stand up in the 1980s.
I recall the chiepie sets my friends had with that red CN two bay hopper with PLASTIC wheels. I likened that to a SCOUT set that Lionel did in its heyday too... those cars couldnt keep signals lighting as they rolled by. But that was were they started.
Then the 9200 and 9700 series, standard o series with sprung diecast trucks and better and better engines. It took to 1979? To get to see an FM again but we did get to see many postwar classics redone by MPC with same tooling.
I just cant say lionel was dead because they took an approach to make another scout set to get into stores despirately for market. The can motor thing you raise i didnt know about. At the time Williams was doing MUCH CHEAPER copycat FMs with CAN MOTORS and i remember collectors being split over it. Some loved them and the cost, and some hated them.
I got a early williams FM, i dont even recall which one, it ran ok, but i didnt like it that it was a copy and we replaced it with a 1965 lionel virginian fm which i still have.
Its great to here memories from back in that time. I am sorry about your grandpa thinking lionel was dead, but during late 1970s and 1980s they did GREAT stuff...