They started out right, but what went wrong? After four decades, they unfortunately have to cease operations.

Lima Model Trains is an Italian based railroad modeler from the early 1960’s. They were very popular in the UK for the reason that they provide cheap prototypes of N scale, OO scale materials used for their model railways, although they also utilize O scale but in only a small range. They also were the provider of a lot of great creation in some of the European countries and were known for their precise detailing on their models. They were a hit during their time that a lot of other manufacturers wanted to have an alliance with them. Lima Model Trains were even marketed under a variety of distributors, to name a few are Minitrain and Model Power.

Lima Model Trains were the envy of some manufacturer because they can operate on a small scale but still earn bigger. Lima was capable of minimizing their cost by doing 500 small production runs compared to their toughest competitor, Hornby, who would require at least 4000. This was because their importer only ordered a number of items that readily match their production that’s why it was immediately received all throughout their retailers. Lima Model trains took advantage of this capability by introducing a new line of train models sold in small quantities just so they can maintain the balance between cost and sales. They began to distribute all throughout the world and they were successful.

However, at the dawn of innovation and high-tech evolution, Lima has been left out. Competitors proposing better quality products soon arise and have demoted the characteristics of Lima model trains into just mere train toys. Lima seeks for mergence and soon tried alliance with 3 manufacturers but still failed. Lima tried to catch up but they were unable to grasp to the competition thus the putting an end to their operation in 2004.

Hornby, one of the most popular railroad modeler even at the present time, offered to buy all of Lima’s assets including all the tooling, brands, and the remaining inventory for 8 million Euros. After 9 months, Hornby formally proclaimed the acquisition of Lima and their partners. By 2006, Lima model trains were recreated and were made available to the public once more.

Lima model trains were a huge hit at their time, it was said that the reason behind their failure was that they never were able to cope up with the growing demand of their customers. Is it the true reason behind, who knows? But one thing’s for sure they have certainly made a name for themselves which will be with us until the end of time.

Here are some other links we recommend:

Wikipedia

They have info about their history and

orgins. It's quite interesting.
www.wikipedia.com