[JC Woodman]

I posted this on another thread but thought it warranted a deeper discussion here:

Well here is some info. I was speaking w/ Bob @ Perry Aircraft Thursday afternoon and he tells me the news from Corgi is:

The current production partner in China is apparently put off over the production numbers requested by Corgi (they want larger orders). So consequently they have been "dragging" their collective feet and don’t seem to have Corgi's interests as the higher priority.
It is further said that Corgi is trying to move the production deeper into China for lower costs.
All in all this conversation left me thinking that the lower production run models may be in jeopardy or simply may cost more in the future.
Once again this is somewhat of a rumor though I do have enough confidence in the sources that it seems to be far more fact than I would like as a collector who LOVES the low production run subjects.
What do seem to be evident is that the new Corgi subjects may be arriving in groups, the PBY was mentioned specifically. This seems to be another negative from the vendor’s point of view as they think it will affect sales of some of the subjects… In general though, not good!

[Canucklehead]

As Corgi collectors, delays may soon be the least of our worries. I'm not really into the balance sheet/corporate mandate scene, but from what I gather, Corgi's not doing too sh!t hot money wise. For those of you that are into the balance sheet/corporate mandate scene (you soulless bastiches), you may want to check out Corgi's new financial report or something: http://www.sec.gov/Archives/edgar/da...333106.htm#Key
I can't read it. Too many numbers, not enough pictures...

[JC Woodman]

Wow Canucklehead that made my head hurt... It does seem to tell a bothersome tale though. Same costs but half the profit since 02. Not good.

[Celtic]

I've heard from an "in" source that Corgi USA is having a hard time competing with the low-cost manufacturers, and there is danger of Corgi pulling out of the US altogether. Out-of-control production problems and quality-control problems in the Chinese factories (which are not owned by Corgi) were mentioned as a contributor to the profit woes.

For one, if Corgi does depart, I'll probably cut my collecting way back (maybe an occasional GeminiAces or HM). To me, there is nothing more satisfying in diecast collecting than opening that colorful AA box and seeing a new model for the first time. For some reason, no other brand gives me that sort of "kick."

[Tyler109]

Originally Posted by Celtic

I've heard from an "in" source that Corgi USA is having a hard time competing with the low-cost manufacturers, and there is danger of Corgi pulling out of the US altogether. Out-of-control production problems and quality-control problems in the Chinese factories (which are not owned by Corgi) were mentioned as a contributor to the profit woes.

For one, if Corgi does depart, I'll probably cut my collecting way back (maybe an occasional GeminiAces or HM). To me, there is nothing more satisfying in diecast collecting than opening that colorful AA box and seeing a new model for the first time. For some reason, no other brand gives me that sort of "kick."

I totally agree...if corgi goes my collecting days will be pretty close to numbered. I've had my fill with Dragon between fit problems and thier politically correct German aircraft (but that goes for anyone) I just think Corgi makes the best out there period.

[jim]

Now thats what I call a real good read???????????

Originally Posted by Canucklehead

As Corgi collectors, delays may soon be the least of our worries. I'm not really into the balance sheet/corporate mandate scene, but from what I gather, Corgi's not doing too sh!t hot money wise. For those of you that are into the balance sheet/corporate mandate scene (you soulless bastiches), you may want to check out Corgi's new financial report or something: http://www.sec.gov/Archives/edgar/da...333106.htm#Key
I can't read it. Too many numbers, not enough pictures...

[JC Woodman]

Well Corgi is in some trouble it seems though I don’t see why they would just pull out of the US market and not bug out all together? Production cost are a key piece for them as their product is rather elaborate in some cases and they do have a large line of products, many outside of the aviation side.
Everyone is using Chinese/Asian labor so the only way I see Corgi surviving is lowering costs where possible, and most likely raising prices that will certainly be a touchy issue.
If they are trying to move production away from the central factory areas in China (see my above post), this may buy them some time. But it seems the low order numbers from them are the issue w/ the factories. I am sure they love Dragon, and others who have no particular limits on how many they order made.
Also do remember that the die cast car model and toy industry in general offer a great option to the manufacturing concerns and their factories. Heck they may decide Pots and Pans are more lucrative than little airplanes.


Buy em while you can!

[timbo]

Thes numbers are not just Corgi but for the Mother company as a whole. Seems that there is a lot of risk assessed that their big customers such as Mattel could find cheaper suppliers. Not sure how much of the turnover/loss is directly releated to Corgi, but whatever it does not bode well for future development.
.
Are all Corgies produced by outsourced mfg? Zindart has their own facilities, so they could in threory bring it in-house, but I doubt they have the capacity.

[STARMAN 352ND]

Well shoot.....Does this mean the P-38 Lightning may be delayed and not coming this month?
What about the other Corgi's due out in the next few months.
JP

[Gort]

Can you imagine how this might affect Corgi vendors, say like The Flying Mule? What a scenario: Corgi slows its shipments down to a mere trickle, and then – poof! All gone. I don’t know what percentage of TFM’s sales Corgi represents, but it’s got to be substantial.

If I read this right, guy’s like me who were seriously considering selling off their Corgi collections ought to hang back for a while.