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Lionel declined rapidly after 1956. Hobbyists preferred the smaller but more realistic HO scale trains, and children's interest shifted from toy trains to toy cars. The shift caught Lionel off guard, and in 1957, they hastily introduced a line of HO-scale trains licensed from Rivarossi and a line of slot car racing sets. Neither product line ...
Lionel, LLC is an American designer and importer of toy trains and model railroads that is headquartered in Concord, North Carolina.Its roots lie in the 1969 purchase of the Lionel product line from the Lionel Corporation by cereal conglomerate General Mills and subsequent purchase in 1986 by businessman Richard P. Kughn forming Lionel Trains, Inc. in 1986.
In the 1960s, TYCO changed its focus from train kits to ready-to-run trains sold in hobby shops and added HO-scale electric racing sets, or "slot car" sets. A wide range of slot cars and repair parts, track sections, controllers and accessories were also available. The slot car rage started in 1963. [3]
MTH also produced many sets of New York City Subway cars, licensed by the MTA, and two sets of Chicago 'L' cars. Lionel currently holds the MTA license for the NYC Subway cars in O scale while Walthers holds the license in HO scale after acquiring Life-Like. The license transfer is in part due to MTH producing sets covered in graffiti.
In May 1967, Lionel Corporation announced it had purchased the American Flyer name and tooling even though it was teetering on the brink of financial failure itself. A May 29, 1967, story in The Wall Street Journal made light of the deal, stating, "Two of the best-known railroads in the nation are merging and the Interstate Commerce Commission couldn't care less".
The latter of the two cannibalized the Walmart-owned warehouse store to create one of the largest retail stores in the U.S., employing about 360 associates, according to Walmart.
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