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No more AMT / Ertl Kits ??

RC2 announced late last week it is dropping the AMT line of automotive kits. It's also dropping the AMT, Ertl, Joy Ride and Racing Champions die-cast lines. According to a news release fom the company these lines didn't make the profit margin they had expected so they are discontinuing them. If this is true, it's a sad day (:<

Reply to
Count DeMoney
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goodbye star wars models.

Reply to
e

I understand business has to be business, but it's sure sad that it boils down to the almighty dollar! And that's all corporate thinks about! Mike

-- What does it mean when the flag at the Post Office is flying at half-mast? They're hiring.

Reply to
Mike G.

Reply to
eyeball

This is what appears in the RC2 press release dated Jan 11, 2007

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"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).

;^)

Martin

Reply to
The Collector

That would suck to lose another model company...but should all those unopened AMT kits in my attic get ready for ebay? :)

Reply to
eyeball

What else do they sell?

WmB

Reply to
WmB

Toy farm sets. There are probably other things but I don't care enough about these suckers to look into it. It was a sad day when this RC bunch got their hands on Ertl.

Bill Banaszak, MFE Sr.

Reply to
Mad-Modeller

even if the box art was better than the kit.

1/2 my ertl i bought for that reason.
Reply to
e

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