I found this link concerning Lionel LLC’s former CEO, Gary Moreau, during a Google Search for Lionel:
www.hometownlife.com/HomeTownLife/NewsSearch.asp?pageType=Story&StoryID=85912
BillFromWayne
www.modeltrainjournal.com
Interesting. If I recall correctly, Charlotte, his wife, was someone he met at Lionel. Correct me if I’m wrong.
Bill,
Interesting. If he’d stayed at the helm, maybe Lionel would be in a better position today and might not have done crooked things. I believe that the beginnings of TMCC were started on his watch. Probably the best guy Lionel ever had since JLC.
(then again, maybe not)
TMCC was developed by Richard Kughn and Neil Young. It was introduced in 1994/1995 before Mr. Kughn sold Lionel to Wellsprings. Gary did try to license the technology but the original terms were considered too restrictive and almost no one signed up (exceptions were TAS and Digital Dynamics?). He did appear in the Trains Unlimited Episode “Toy Trains” and represented himself and Lionel quite well. Some of his problems involved QA issues with material being made overseas (e.g. Backshop). SInce he was not a “train” person, Wellsprings decided to replace him with *** Maddox. It should be noted that the issues surrounding the lawsuit occured on Mr. Maddox’s watch.
Having read the transcripts of the Korean trial and the interview of a Samhongsa principal following that trial, I haven’t see where “Lionel” did anything “crooked”.
chuck,
Let me rephrase “crooked” to a better phrase: “incident that resulted in Lionel needing to shell out a couple of thousand.”
From a distance, I always liked Moreau. I liked what he said on the “Trains Unlimited” special and it’s not improbable that he got a bum rap or was just a casualty of the corporate drive for increased revenue. No doubt the sacking of the last group at Lionel had much to do with that, as well as responsibility/blame for the whole MTH lawsuit mess.
I admire Moreau’s transition and his writing a book on it. Being out of work as long as I have has been a trying and changing time for me also. I have a deep and profound understanding for things I did not at one time. I see the changes in the American economic landscape, and though they might be good changes in the long run, that has yet to be seen.
It’s funny how it takes being pushed to the bottom of man’s world to start looking up to God’s world. Both the Old and New Testaments are full of references to wealth, justice, responsibility, payment of fair wages, charity and compassion.
No one can tell me that the moving of so many former US located companies and so many jobs overseas is driven by concern for American families, American workers and a sense of social responsibility. No. It’s driven by the bottom line and the desire to make more money. It would be wonderful if the prices of these foreign made products reflected the actual costs of making these items. Yet prices of many of the overseas manufactured goods are going up. Is it any wonder that when people do shop, they shop not at the locally own neighborhood store, but at the corporate chain or on-line store that can offer the rock bottom price.
Companies plead poverty in order to cut wages and/or relocate overseas, an
According to MTH, their plans were stolen in 1998 or '99. If I remember correctly, Maddox didn’t come on board until the latter half of '99. I always thought the plans were stolen under Moreau’s watch(?).
As far as I’m concerned, Gary Moreau ran Lionel into the ground. Go back and look at MTH’s catalogs from the late '90s, and then compare them to Lionel’s from the same period. It’s really kind of sad. [:(]
I can’t tell you about the time sequence of “events” surrounding the lawsuit, and when Gary Moreau left and *** Maddox arrived. It’s possible that it even fell through the cracks during the transition.
But what I can tell you is this: Gary’s room mate and good friend from college Glenn has been an active member of our church for years, as well as using much of his spare time running the board of the Greater Burlington YMCA. Glenn was Gary’s best man at his wedding, and Glenn’s daughter Emily was our baby-sitter. She was amazed that I had so much of “Uncle Gary’s stuff” in my basement.
Glenn is a successful businessman, and a man of great faith. He practices both well. If he’s had any influence on Gary, or vice versa, then it’s been a good relationship.
As a side note, my Dad who was a former VP of Corporate Engineering Worldwide for Pfizer says business exits for three reasons:
- To make a quality product that people need.
- To provide meaningful work for people to do.
- To earn money for the stockholders.
Without any one of these three elements, you have an unhealthy company. Eliminate jobs, and you’ve reduced not only your customer base, but the customer base of your customers, suppliers, and stock holders.
Without a quality product that people need, you’re only driving short-term profits into a brick wall. When people understand it’s a bad product and word gets out, it’s over.
And without a reasonable return on investment, you won’t have money to invest in the company’s growth. Business should be a symbiotic relationship with the communities it serves. And it can do this very successfully if it is run with moral people at the helm.
Jon [8D]
OK, so he used the Bible to run Lionel, nearly put Lionel into receivership, and wasn’t aware his subcontractor was building off black market AutoCAD discs. It’s amazing how people have the nerve to exploit religion.
I don’t know Gary Moreau nor have I read his book yet. So I’m in no position to judge one’s morals, merits or intentions. I don’t know for certain that he (or anyone else) used the Bible to run Lionel. One would be mistaken though to read the Bible as a handbook or instruction manual for running a company.
I don’t want to offend anyone’s beliefs here. But assuming one believes, the Bible is the Word of God. If one’s mind and heart are in the right place - or seeking to be in the right place, the Bible won’t always tell you what to do, but will guide you in finding the right thing to do. If your heart is in the right place, then chances are better your actions will follow. And I’m talking about true seeking and true belief: not just a smoke screen used to warrant any kind of unjust decision in the name of God.
It’s more than obvious from reading the papers that there have been and still are plenty of companies that put short-term profits, quaterly reports and shareholders interests above anything else. The leading employer in my area has eliminated thousands of jobs in the past few years and has caused immeasurable hardship to the community. Enitre departments were sacked with little attention paid to individual performance or contribution. The bottom line was calling the shots and entire departements were eliminated on the basis of cutting costs and nothing else. We have the highest unemployment rate in the state, yet the company has rewarded it’s top few executives with over $14M in bonuses in the past 2 years.
In my thinking, what’s the point of a company being profitable today if tomorrow, the people who used to work for that company can no longer afford their products? And how long does it take until working people elsewhere in the US can no longer afford to buy those products?
There has been plenty of cost cutting done with Lionel product over the years, and not all of it under Moreau’s time at Lionel. Richard Kughn is widely credited for bringing life back
VERY well said, Brian!
The biggest problem with Moreau was he didn’t know the market or the difference between a GG1 and an F-3. Anyone who knew better and second guessed him was dismissed. He made a lot of mistakes and scoffed off his forewarnings. He was litterally escorted out the door, lock, stock, and barrel.
Now he’s writing a book aimed at christians who wi***o suceed in life. That’s like Martha Stewart sitting writing a book on savy stock trading.
Richard Kughn sold Lionel to Wellspring Associates on September 29, 1995. At that time, or shortly thereafter, Gary Moreau was named president of Lionel LLC.
The theft of MTH locomotive parts drawings from Samhongsa occurred in 1998 or 1999.
Richard Maddox was named president and COO of Lionel LLC on July 26, 1999.
Korean media reported the drawings theft in March of 2000.
The MTH lawsuit against Lionel LLC and Korea brass was filed in April of 2000.
The above information came from back-issues of CTT and from Lionel’s website.