Greatest Hits: Model Cars
The Decline & Fall Of A Car Industry: Once upon a time, there was a car industry in a mighty, industrialized nation.
But the business landscape was changing and once-great companies were losing strength. And market share. One firm's "previous strengths now became weaknesses. ... old machinery could only produce old-fashioned products." Its "much-vaunted distribution system ... (i.e. - dealers) ... now also proved to be a weakness."
A new competitor came from overseas, with new and improved designs - better products. This foreigner's home country nurtured creative, entrepreneurial businesses and offered a more favorable tax structure. This helped free up funds for new product development.
The new import caused the most prosperous vehicle manufacturer to suffer a 75% drop in sales. Every other established factory in the nation suffered, too. Within 15 years, "every leading brand name had either disappeared or had fallen into new ownership, mostly multinational companies. Many of the closures were inevitable, as lack of investment had rendered production plant obsolete or ranges impossibly outdated."
Is this story about Detroit, GM and the Toyota invasion?
No, it's about Great Britain and the decline and fall of the toy car industry. The facts and quotes are from an article by Rod Ward in the March 2006 issue of Model Auto Review. (It's a great little magazine to which I've subscribed since its inception in 1980. Rod is both editor and publisher.)
Meccano, the venerable maker of Dinky toy cars and trucks, was the big manufacturer encumbered with old machinery, stale designs and a vulnerable dealer network.
Matchbox Toys - once a hotshot British upstart - saw its sales drop 75% after the introduction of Hot Wheels, made by U.S. toy giant, Mattel. Hot Wheels debuted in 1968 and some product was made in America, although by 1972, all production had moved to Hong Kong.
Many British toymakers moved their production to Asia but it was too late to play catch-up.
By 1983, the British toy industry had collapsed - Corgi Toys went bankrupt (and was later taken over by Mattel). Dinky went belly-up in 1981; Matchbox in 1982. In 1999, Corgi was bought by Zindart of China.
You can still buy Matchbox, Corgi and (until recently) Dinky brands of diecast cars but all are now made in China. Rod Ward laments, "The skills no longer exist in Britain, and anyone wanting to make mass market toys or models now has no choice other than to go to the Far East." (posted 3/10/2006, permalink)
Kiddie Cars: Once upon a time, it was believed that little cars helped sell big cars. Starting in the 1920s, Citroën actively assisted toy manufacturers, freely supplying technical details to toymakers and acting as a distributor, selling little cars in its dealerships. The theory was that young children would bond to the brand of auto and, as adults, would be more prone to purchase the full-size namesake. Or persuade their fathers to buy the full-size model. It was just one more way to build brand loyalty in the marketplace.
In the 1950s, it was very common to find 1/25th scale promotional models at U.S. car dealers, toy stores - even gas stations. These injection-molded plastic vehicles were fairly realistic and were available in factory colors.
During the same time period, five-and-dime stores carried crude but recognizable 10¢ diecast Tootsietoys of popular cars.
When I bought a new Scirocco in 1976, I purchased a few 1:43 scale models of my new car - in the same silver color as my 1:1 scale Volkswagen. These little diecast models were made by the German firm Schuco and were pretty accurate. I got mine from the VW dealer where I bought my car.
By the late 1970s, models of American contemporary automobiles became harder to find. Maybe it was because cars had become less exciting-looking. There have always been models made of swoopy Ferraris and Corvettes but everyday cars have become less available. This is not the case in Europe, where manufacturers like Schuco, Eligor, Bburago and Minichamps introduce miniature models of Mercedes, BMW, Fiats, Opels and Seats simultaneously with full-size model intros. In Japan, Tomica manufactures models of many contemporary Japanese vehicles.
If I were in charge of an American car company, I'd command my stylists to produce cars that were soooooo cool, diecasting companies would fall all over themselves to produce them.
In 2006, Ford cut a deal with Kellogg's to pack 600,000 little Fusion models - made by Hot Wheels - in boxes of cereal. The Ford Fusion became a big seller. GM and Chrysler did nothing and went bankrupt.
Coincidence? I think not. (posted 10/13/2009, permalink)
Miniature Market: Eric Waiter Associates (also known as EWA Miniature Cars USA Inc.), a mail order and (later) internet retailer with a large offering of scale model vehicles, has closed. The Green Brook NJ firm has been around since 1982 and, at its peak, reportedly moved $3 million worth of little cars and other auto-related merchandise per year.
In recent years, online business via the firm's web site accounted for 75% of EWA's income. Besides selling 8,000 different model cars and subscriptions to many of the world's car and racing publications, Eric Waiter Associates also offered more than 3,500 automotive books. Customers included Jay Leno, Jerry Seinfeld and David Letterman. At one time, the firm reportedly had annual sales in the $3 million range.
No reason was given for the closure, although the store suffered $300,000 from storm damage in 2008. The model car business has changed greatly and as pre-boomers and boomers are getting older and downsizing, they are buying fewer models. Or have already purchased everything they want.
EWA did carry models that I couldn't find elsewhere but the firm became a last resort for me because the prices were high and, if there was a problem, the customer service was less than stellar.
In the 1980s and early 1990s, small companies were producing limited-edition, expensive models of automobiles in 1:43 scale. Described as "Hummels for guys," these handbuilt models were mostly of cars from 1935-1965. Brooklin, Western Models, SMTS and Mini-Marque - all based in England - dominated the market. Later, Franklin Mint and Matchbox got in the game, adding expensive little models to their line. Then the market got saturated - people had bought every model they wanted and their display cases were full. Matchbox Collectibles disappeared, Franklin Mint downsized and many of the smaller producers either closed or became shadows of their former selves.
Over the past decade, a large number of model car retailers have also shuttered their premises; EWA being the latest. (posted 3/11/2010, permalink)
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copyright 2006-10 - Joseph M. Sherlock - All applicable rights reserved
Disclaimer
The facts presented in this blog are based on my best guesses and my substantially faulty geezer memory. The opinions expressed herein are strictly those of the author and are protected by the U.S. Constitution. Probably.
Spelling, punctuation and syntax errors are cheerfully repaired when I find them; grudgingly fixed when you do.
If I have slandered any brands of automobiles, either expressly or inadvertently, they're most likely crap cars and deserve it. Automobile manufacturers should be aware that they always have the option of giving me free cars to try and change my mind.
If I have slandered any people or corporations in this blog, either expressly or inadvertently, they should buy me strong drinks (and an expensive meal) and try to prove to me that they're not the jerks I've portrayed them to be. If you're buying, I'm willing to listen.
Don't be shy - try a bribe. It might help.
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