[celticgriffon]

Hi everyone,

I am surprised there has been no discussion on this yet. It seems the parent company which owns Carrera has been bought out by Quantum.

Here is the link:

https://toyworldmag.co.uk/news/quantum-acquires-slot-car-specialist-smv/

Does anyone know if we should be worried? I have found problems start occurring when a company changes hands. It often leads to shortcuts in manufacturing as costs are cut to pad the bottom line. This year I have went all in on Carrera Digital 132 and have spent over 5k CDN on it so far. I am kind of worried...

Thoughts? Is this the end of an era?

For what it was worth I have watched a few videos regarding the current CEO of Carrera and you could tell this man had a love and passion for his brand and the Slot Car Hobby.

mb

 

[Grumpy Gaz]

Hhhmmm? It begs the question, "Will Revell cars be up graded to Carrera quality, or the reverse?

On the plus side maybe Revell kits will be made comparable with PCS chassis, thus easily converted into slot cars

 

[SundaySlotCars]

Carrera's been really keen on increasing their international marketing share with slot cars lately. They've been really helpful. I guess this is why. We already saw them cut costs by making generic "Carrera" tires instead of name brand tires.

 

[slotmonkey]

If the new owner of Carrera (Quantum) wants to streamline the slot car side of the business, I would expect the first thing for the chop would be analog 1:32 scale product, both sets and single cars.

Carrera are strong in digital sets and the smaller scale, like GO, but from a purely bottom line analysis I would expect that making digital sets is the most profitable side of the business.

Grump Gaz mentioned Revell but I'm pretty sure Revell bailed out of slots 3 or 4 years ago. Quantum own Revell as well but I doubt whether there is a business argument for trying to re-launch Revell/Carrera as a new slot car brand.

Tim

 

[Chappy]

Interesting to see this unfold.
Price point they have championed over the last few years.
The new owners will have to make the purchase pay for itself .
So the only 2 ways i know are cuts to cost production or increased
Prices to the retailers. Worth keeping an eye on for sure.
Bob

 

[BigMike]

When I saw the news I started looking at Quantum's site. They list about 16 companies they have acquired and 3 success stories. They are pretty diverse, various manufacturers, agricultural, metal refinement, manufacturing control systems.

Looking at the history they will probably reorg, cut a few product lines, and work to streamline production. This could be good or bad, I'm not sure they will look to do anything with Carrera/Revell unless they consolodate manufacturing in some way but I wouldn't get my hopes up. I also don't see anything that make's me think they will invest in innovations, just optimizations and cost cutting measures to try and make it more profitable to sell it off. I'd be more concerned about quality taking a dive.

Aviatube - Aviation tube manufacturer Jan 2015

Gianetti Ruote - Manufactuer of steel wheels Aug 2018

Leesys - Systems service provider for Electronic manufacturing April 2014

Leichtmetall - Aluminum billet and extrusions for Aerospace April 2014

Prolacto - Milk based products from Nestle April 2018

Revell - Plastic model kits Germany 2017/US 2018

Secan - Wheat, Soybean, Oats, Flax Jan 2015

Slim Aluminum - aluminium sheets, tapes and foils for the packaging, automotive, transport and construction

Slim Fusiona - Aluminum rolling mill April 2017

Slim Merseburg - aluminum

SoProNem - Detergents Jan 2014

Tecalex - Manufacturer machining

Telealarm - Home alarm and medical emergency call Jan 2015

Vauste - Shock absorbers Mar 2016

Sucess Stories

Medexx - Medical/Rail sector transformers, power supplies.

Following the takeover, QCP's strategic focus was on rapid restructuring at mdexx and establishing a sustainable business strategy. Following measures were implemented:

New management fan business and CFO

Focus on operational improvements and process optimization (e.g. down scaling of unprofitable Chinese operations)

Streamlining of product portfolio and focusing on core business

Replacement of interims by full time employees

Clarton Horn - Manufacturer of automotive horns 2009-2013

Following the takeover, QCP's strategic focus was on rapid restructuring at Clarton Horn and establishing its long-term position as an independent company on the global market. QCP implemented the following measures:

• Investment in a new SAP system
• Launch of the Quantum Production Management System which achieved a 20% increase in productivity
• Investment in a new R&D department to focus on product innovation
• Development of a European sales team
• Development of an electronic car horn
• Leichtmetall -
• After the takeover, QCP's strategic focus was on transforming the former production site into an autonomous company and on establishing a strong and sustainable market position. The holding implemented the following measures:
  • Independent company created with all support roles
  • Restructuring
  • Rebranding
  • International sales team created and existing sales and marketing structures strengthened
  • Maintenance and consolidation of customer relations
  • Diversification of the customer base
  • Investment in a new homogenising furnace to double capacity

formatting went a bit nutty...sorry about that.

 

[celticgriffon]

If the new owner of Carrera (Quantum) wants to streamline the slot car side of the business, I would expect the first thing for the chop would be analog 1:32 scale product, both sets and single cars.

Carrera are strong in digital sets and the smaller scale, like GO, but from a purely bottom line analysis I would expect that making digital sets is the most profitable side of the business.

Grump Gaz mentioned Revell but I'm pretty sure Revell bailed out of slots 3 or 4 years ago. Quantum own Revell as well but I doubt whether there is a business argument for trying to re-launch Revell/Carrera as a new slot car brand.

Tim

There is a pretty large price difference if you compare 1:32 scale analog and digital sets, especially here in Canada. If you want to build up a critical mass of track the analog sets are the way to go. I also feel the price point is very close to any of the few HO scale sets available on the market today. I wonder what their numbers reveal, however.

 

[SundaySlotCars]

There is a pretty large price difference if you compare 1:32 scale analog and digital sets, especially here in Canada. If you want to build up a critical mass of track the analog sets are the way to go. I also feel the price point is very close to any of the few HO scale sets available on the market today. I wonder what their numbers reveal, however.

Now hold on there. If you were to buy an analogue set and get it's track to equal out to around what comes in Ford Fastbacks, buy the lap counter vs. buying the app connect at full msrp; you're only looking at a 50-60 dollar difference. Analogue isn't the way to go in my opinion.

Carrera's product line was (and to some extent still is) way to large and they cannibalize themselves. Who wants to buy digital 143 when for only around 100 dollars more (Canadian) you could get a 132 digital set? Yes, it's kind of nice for people with small apartments but I had a small apartment and trust me I would have taken the upgrade. Then you have go +? I have no idea how well Carrera first is selling so I won't comment on that.

If they could stop releasing new red formula 1's every year and give us some colour variety I'd also appreciate that. I do want to stress I do like Carrera as a company. They have a good warranty program and a really nice way to replace parts (plugs instead of soldering).

 

[b.yingling]

I don't see Carrera First, Carrera Go, Carrera Go+, Digital143, Evolution, Digital132, and Digital124 all surviving this. Will be interesting to see what happens.

 

[abie321]

2 Comments I have heard are

1) There will be no change - everything will remain as is - product lines will remain,

2) there were sales slowdown in 2018, which probably forced this on the owners.

For me - I have never known a corporate not to leverage brands so that overheads can be reduced. So even with this comment above, I do expect change.....

 

[injectorman]

In my opinion it can only get better.

 

[Pioneer]

Rick, in what way "better"?

I'm still chewing this one over. I would have thought that some product lines would be trimmed back. I can't imagine for a second that an investment company like Quantum believes that there is a growth market in slot cars to get into.

As has been mentioned already, I'm 99% sure that "Revell" do not have have slot car tools any more so there would be zero chance of a refreshed Reveal_Carrera slot car business.

One thing is for sure: somebody, somewhere needs to force a 'one system' digital platform. There is much more of a chance that this will happen now. Quantum will not be 'precious' about a proprietary system. If it makes sense to join forces (or buy and crush the opposition), that is what they will do.

Ring, Ring. Ring, Ring. "Hello, is that Hornby?".

"Yes, how can I help you?"

"This is Quantum."

Or, in an alternative universe, simply reverse the parties in the above phone call.

That'll do for now.

Jules @ Pioneer.

 

[SundaySlotCars]

...One thing is for sure: somebody, somewhere needs to force a 'one system' digital platform. There is much more of a chance that this will happen now. Quantum will not be 'precious' about a proprietary system. If it makes sense to join forces (or buy and crush the opposition), that is what they will do.

Ring, Ring. Ring, Ring. "Hello, is that Hornby?".

"Yes, how can I help you?"

"This is Quantum."

I'm going to respectfully disagree. Quantum owns the best selling 1/32 / 1/24 slot car brand they sure don't want to "share" with Scaley. If anything they'll be giving a call to third party chip makers. Except the calls going to be for a cease and desist. They bought Carrera to make money and it makes no sense to have one unified system from a business perspective. They want you to buy 100% Carrera for your Carrera Digital system. Having options is purely consumer friendly, not business.

 

[celticgriffon]

Now hold on there. If you were to buy an analogue set and get it's track to equal out to around what comes in Ford Fastbacks, buy the lap counter vs. buying the app connect at full msrp; you're only looking at a 50-60 dollar difference. Analogue isn't the way to go in my opinion.

I am full in on digital because for me running more than 2 cars at a time is very appealing, but I was prepared to pay for this experience as well. I also wanted the functionality of a Pit Lane experience.

Price points are an important factor to most consumers, however.

Play Value Toys is one of Canada's largest Carrera dealers. The digital 132, DTM Championship kit is 599.99. In terms of digital components it has a CU, double lane change and 2 wireless controllers. The Evolution DTM Fast Lap set has a an analog CU, no lane change and wired controllers. Both have 2 DTM cars and of course the digital set has 2 digital chips. But the price is only 269.99. Both kits have the same amount of track.

I am not saying the digital sets don't offer value for your money. If you are racing digital they certainly do as the digital components are expensive on their own.

If the goal is to have a slot car set for racing then the starting price point for analog is almost half of digital. Some people just want the nostalgic feeling they may have had as a kid and on this front analog racing captures this completely. If the goal is to get as much track as you can for your buck then analog sets are absolutely cheaper.

 

[Grumpy Gaz]

If I'm not very much mistaken the biggest selling slot car range is 1:32 analogue. Digital is widely regarded as technically superior, but this come at a premium.

All things considered I find it highly unlikely that Carrera's new owners 'Quantum' would ditch analogue purely for technical reasons against all sound business sense.

Furthermore many people (my self included) find digital as prohibitively expensive.

 

[Wankel Ickx]

To a refer to the thread's title, I don't think Carrera now has a future.

 

[b.yingling]

To a refer to the thread's title, I don't think Carrera now has a future.

Oh...I think they do. You don't buy a toy company just to disband it. They aren't big enough to make their dismemberment profitable. The purchasing company also owns Revell, and they claim to want to establish a larger presence in the toy market.

It may will mean the end of Carrera as we presently know it- but I don't think it will be the complete end of Carrera slot cars.

 

[b.yingling]

If I'm not very much mistaken the biggest selling slot car range is 1:32 analogue.

1/43 analog sets have always been the biggest seller in the U.S. Not sure about elsewhere.

 

[SundaySlotCars]

I am full in on digital because for me running more than 2 cars at a time is very appealing, but I was prepared to pay for this experience as well. I also wanted the functionality of a Pit Lane experience.

Price points are an important factor to most consumers, however.

Play Value Toys is one of Canada's largest Carrera dealers. The digital 132, DTM Championship kit is 599.99. In terms of digital components it has a CU, double lane change and 2 wireless controllers. The Evolution DTM Fast Lap set has a an analog CU, no lane change and wired controllers. Both have 2 DTM cars and of course the digital set has 2 digital chips. But the price is only 269.99. Both kits have the same amount of track.

I am not saying the digital sets don't offer value for your money. If you are racing digital they certainly do as the digital components are expensive on their own.

If the goal is to have a slot car set for racing then the starting price point for analog is almost half of digital. Some people just want the nostalgic feeling they may have had as a kid and on this front analog racing captures this completely. If the goal is to get as much track as you can for your buck then analog sets are absolutely cheaper.

You are comparing a wired set to a wireless set. You also didn't factor in the app connect cost vs. the analogue lap counting cost. I'm going to make a youtube video breaking down the costs of 1/32 analogue to digital to show you people the cost really isn't that much cheaper. It's seriously just around 50 dollars cheaper Canadian.

 

[injectorman]

I'm going to respectfully disagree. Quantum owns the best selling 1/32 / 1/24 slot car brand they sure don't want to "share" with Scaley. If anything they'll be giving a call to third party chip makers. Except the calls going to be for a cease and desist. They bought Carrera to make money and it makes no sense to have one unified system from a business perspective. They want you to buy 100% Carrera for your Carrera Digital system. Having options is purely consumer friendly, not business.

Hornby owns the best slot car brand where I come from.
Agree about unified system. If I were to go to a unified system right now I would be taking a massive backward step and losing some great functions and advantages.