This is what appears in the RC2 press release dated Jan 11, 2007
"As previously announced, the increased cost of zinc, which is a key component in diecast products, is expected to result in lower profit margins during the fourth quarter of
2006 compared with the fourth quarter of 2005. Increased zinc costs will likely continue to negatively impact margins in the first half of 2007. The Company intends to partially offset these increases with selective price increases in 2007 and continued product design and supply chain cost management efforts.
During December 2006, the Company made the decision to discontinue its Racing Champions=AE, JoyRide=AE, Ertl=AE and AMT=AE die-cast and model kit automotive collectible product lines that on a combined basis generated approximately $36 million in net sales in 2006 and approximately $60 million in net sales in 2005. Discontinuing the automotive collectible product lines is consistent with the Company's strategy to focus on sustainable, organic growth and on allocating resources to its higher growth infant products and children's toys categories."
It sounds like the price of zinc is a major factor in this decision. I think the discontinuation of ALL AMT models may be a little open to quesiton based on a strict interpretation of the text in the press release. But then, I guess I'm just optimistic (or in denial).