# Massoth abandoning US market?



## East Broad Top (Dec 29, 2007)

Just got this in my in-box from Klaus...

"To Our Loyal and Dear Customers, It is with repugnance and utmost consternation that we have the distressing duty to inform you that as of April 29, 2011, Massoth Elektronik Germany has abandoned our American customers and has ceased all supply and delivery of outstanding and future orders. We stand in incomprehensible awe to observe this entrepreneurial suicide of yet another LGB- connected company in Germany.We cannot keep a lemming from jumping the cliff.They will not rest in peace. NOW- off to the future...! Our - Klaus and my - leitmotif has always been: Do Not Fear - Klaus Is Near! So it is with pride and the natural sense of the American businessman that we confirm and reassure you - our deeply valued customer- that we restructure and will open our new business "lgbtrainsforever.com, L.L.C" within the month of May 2011. We will support you with the same highest level of customer service that you have come to rightfully expect. We even will improve to serve you with an extended range of products that will keep your LGB trains operating. Because that is our mantra: We Keep Your (LGB) Trains Running! - And that's a Promise. We kindly ask you to follow our blog - see below - and our new webpage www.lgbtrainsforever.com closely for all new updates. Please be aware that the email address [email protected] IS NOT connected to Klaus anymore. It is deadending or will result in information that might be dangerous if applied to your layout. Please utilize the email addresses [email protected] or [email protected] . Here you will receive prompt and quality answers to all your LGB trains related questions.Thank you! We are very much looking forward to continuing to serve you!"

Not sure what's behind it, but certainly interesting...

Later,

K


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## Greg Elmassian (Jan 3, 2008)

Maybe they will sell through Walthers. 

Well, now all the people wanting Massoth will have to get support from a place other than where they purchase. 

Greg


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## TonyWalsham (Jan 2, 2008)

Verrrrrrrrry Interesting!!!!


I know nussing. Nussing I tell you, nussing.


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## Greg Elmassian (Jan 3, 2008)

Chip posted in another thread:

_Dear valued Business Partner, dear Customer,

With this newsletter we would like to inform you about the actual situation in international business of MASSOTH.

Even with an optimal situation in our production and warehouse in Germany, contractual reasons made it impossible to ship any merchandise to USA since January 2011. We regret this very much and ask our loyal customer to apologize, that you could not get the requested MASSOTH items. Since the United States are our most important market in the international business, we have taken this opportunity to restructure our international sales and distribution strategy. Later this month we will have completed the final preparations for the new US concept. We will then immediately inform you in detail. So look forward to special “summer-prices” and a superb service for our dealers and customers.

If you will have an immediate need of merchandise, we have the opportunity to deliver directly from Germany since May 1st. Please contact us by the e-mail addresses below. Please understand that there is a minimum order volume. If you have urgent guarantee issues in MASSOTH branded products do not hesitate to communicate it. As throughout all the past years we will do the service here in Germany, now without detours over Cumming GA.

Please use our regular email address [email protected] for any inquiry. Your questions will be answered by our qualified staff in Germany.

We are looking forward to an enhanced cooperation and a successful future with our partners and friends.

With Best Regards

Daniel Massoth_

So let's see how/who the new US distribution will be.

(did you notice the "dig": "without detours over Cumming Ga" ??, guess there is now some bad blood between Klaus and Massoth) 


Greg


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## Totalwrecker (Feb 26, 2009)

"Please be aware that the email address [email protected] IS NOT connected to Klaus anymore. It is deadending or will result in information that might be dangerous if applied to your layout." 

I'd say it's mutual dislike... 

John


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## krs (Feb 29, 2008)

Always good to wait and find out what the "official" company position is. 
The note from Daniel Massoth certainly doesn't sound as if "Massoth Elektronik Germany has abandoned our American customers" the way Klaus put it. 
In fact, if Klaus had published his email in Germany he would probably be hauled into the courts for statements that are "geschäftsschädigend" - damaging to the business, I have seen those law suits there for far less derogatory statements than those in the email from Klaus. 

did you notice the "dig": "without detours over Cumming Ga" ??, guess there is now some bad blood between Klaus and Massoth 
Ha, ha, Greg, after that zinger from Klaus......no wonder. That email was not a very professional move by Klaus in my opinion, but everyone has to decide that for themselves.


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## East Broad Top (Dec 29, 2007)

I figured there was "the other side of the story" out there somewhere, which is why I posted Klaus's e-mail. (And why I put a question mark in the subject.) Definitely sounds like a bit of bad blood between the two (former) partners coming to a head. Ah, relationships... 

Later, 

K


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## krs (Feb 29, 2008)

What I find a bit disturbing is this statement in Daniel's note: 
contractual reasons made it impossible to ship any merchandise to USA since January 2011. 

This is May!!!


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## Steve Stockham (Jan 2, 2008)

It _would_ tend to explain a lot....


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## krs (Feb 29, 2008)

Posted By Steve Stockham on 03 May 2011 01:27 PM 
It _would_ tend to explain a lot....



You mean this?
"contractual reasons made it impossible to ship any merchandise to USA since January 2011"

What do you read into this?
Sort of odd that the *manufacturer* writes that they can't ship merchandise into a country because of contractual reasons.

Something obviously changed in January - but what ????


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## Greg Elmassian (Jan 3, 2008)

Again, guessing here: 

That the contract with Klaus was in effect until recently (evidenced by the emails from both Massoth and Klaus) 

And Massoth probably wanted to change (as evidenced by their language in the email) but could not change anything until the contract expired. 

again, speculation, but backed up by the facts. 

Regards, Greg


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## aceinspp (Jan 2, 2008)

It also sounds like Massoth just is not going to be offering anythink here in the states seein how everything tied to Marklin. Later RJD


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## SLemcke (Jun 3, 2008)

I don't think they are leaving, restructuring maybe? 

"Later this month we will have completed the final preparations for the new US concept. We will then immediately inform you in detail. 
So look forward to special "summer-prices" and a superb service for our dealers and customers." 

Has anyone noticed the simularity of the new Piko DCC sytem to the Massoth system. 
Steve


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## krs (Feb 29, 2008)

Posted By aceinspp on 03 May 2011 05:43 PM 
It also sounds like Massoth just is not going to be offering anythink here in the states seein how everything tied to Marklin. Later RJD


Massoth tied to Marklin?????

It's pretty much just the opposite.

Knut


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## muns (Jul 24, 2008)

Posted By SLemcke on 03 May 2011 07:35 PM 
I don't think they are leaving, restructuring maybe? 

"Later this month we will have completed the final preparations for the new US concept. We will then immediately inform you in detail. 
So look forward to special "summer-prices" and a superb service for our dealers and customers." 

Has anyone noticed the simularity of the new Piko DCC sytem to the Massoth system. 
Steve 


Well thats because Massoth makes it.


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## Axel Tillmann (Jan 10, 2008)

The contract with Maerklin/LGB doesn't exist anymore. Ever since Massoth decided to work for Piko, Maerklin has given them the boot.

I don't know anything about the details on the separation (and whatever I might think I know I don't tell). But here is a general observation.

The alliance between Massoth and Piko was for one not well received by Maerklin, but even more importantly by any of the Massoth dealers. The pricing strategy was so drastically undercutting Massoth's own product and hence ticking off their traditional channel. And that without warning them, preparing marketing documents that explain to the channel and the direct Massoth customers what the difference are - basically letting everyone hanging to dry.

But here is my feeling, everybody can do what ever they want - we live in a free economy, they are even allowed to commit suicide.


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## Ross (Jul 19, 2009)

OOPS DUPLICATE.


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## Jerry McColgan (Feb 8, 2008)

I too received the email and I have been wondering what had happened. It sounds to me very much like the situation when LGBoA lost the distribution rights for LGB in the USA. There had been previous disruptions with LGB distribution changes even earlier.

Unfortunately, very often such situations leave the customer in the middle of opposing sides and the end result is often that the brand ends up losing market share.

As a customer, my primary concern is that I lost warranty coverage on (then) recently purchased LGB products when LGB went bankrupt; I lost replacement of other LGB stuff when LGBoA closed doors and I will probably lose replacement of a defective Massoth decoder with the split at Massoth. In all cases the results are technically my fault because if I had acted sooner I could have prevented any losses but the bottom line is that we become less willing to buy products that have a history of delivery, parts and service problems.

I hope both Klaus and Massoth do well but just as I identify LGB with LGB of America I also identify Massoth with Klaus. One without the other will never be the same to me.

No doubt everyone has reasons for what has happened but customers tend to end up losing out when such situations arise.

This situation reminds me of years ago when I bought an Ithaca Mag-10 shotgun that came with a lifetime warranty. A few years later Ithaca went bankrupt. I had made a stupid mistake - I had thought the warranty covered the lifetime of the shotgun (or my lifetime) but I was wrong. The warranty actually extended coverage for the soon-to-end lifetime of Ithaca.

Who is to blame? One of my least favorite politicians probably said it best "Its the economy, stupid."

Jerry


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## jake3404 (Dec 3, 2010)

Well, that means I will wait to put a smoke generator in my K-27. I was really going to do it, but with all this nonsense I'm going to wait it out and see what someone comes up with.


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## hvsteve1 (Jun 15, 2011)

I'm probably not the only one who has checked the new web site Klaus lists in the current Garden Railways and finds it leads back to GODADDY,which means it's up for sale. His blog also comes up as no longer valid. I didn't try his email. I wonder what's happened to Klaus.


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## krs (Feb 29, 2008)

He has a new web address and new blog: 

http://www.traincraftbyklaus.com/ 

http://traincraftbyklaus.blogspot.com


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## Greg Elmassian (Jan 3, 2008)

Well, looks like this thread no longer has anything to do with Massoth, from Klaus' site, products are: 

"In the oncoming weeks you will find these fine products/manufacturers here: 
Märklin/LGB, Lenz, Uhlenbrock, Massoth, Dietz, Phoenix, Seuthe and hopefully over time many more." 

Regards, Greg


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## Jerry McColgan (Feb 8, 2008)

I received this email on 6-15-2011:
Hi,
our website has changed to www.traincraftbyklaus.com and we have a new blog out and a new blog address at the same time http://traincraftbyklaus.blogspot.com
We are extremely thankful for you forwarding this to your friends and hope you'll have a Grrreat LGB Garden Railroading time.
Yours truly,
Karin
TrainCraft By Klaus
[email protected]
[email protected]
6585 Remington Dr. Ste.200
Cumming, GA 30040
Ph: 770-886-6670
Fax: 770-889-6837
When at their website, under the Products tab, I found this:
Products
In the oncoming weeks you will find these fine products/manufacturers here:
Märklin/LGB, Lenz, Uhlenbrock, *Massoth*, Dietz, Phoenix, Seuthe and hopefully over time many more.
Meanwhile please call us at 770-886-6670 for ordering or support

When I clicked on the Blog link it did not work but since I really don't know what a Blog is, I will leave it to others to figure it out.

Jerry


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