History Of Lionel Model Trains

April 18, 2006

Lionel is a well-known name associated with O gauge trains. Joshua Lionel Cowen started the Lionel firm in 1900, later developing Standard gauge (2 1/4-inch gauge) and helped to popularize O gauge.

Lionel trains became a major model train manufacturer during the late 1940s and ’50s. In 1969, General Mills secured the rights to manufacture Lionel trains under the names Model Products Corp. and Fundimensions. Richard Kughn acquired those rights in 1986 and formed Lionel Trains Inc. In 1995 he sold the company.

The American Flyer Manufacturing Co. was founded in 1907, and made windup and electric wide gauge (the competitor to Lionel’s Standard gauge) trains. The A. C. Gilbert Co. bought the firm in 1937 and offered O and HO trains. After World War II, Gilbert switched from O to S gauge. Lionel purchased the rights to produce American Flyer trains after Gilbert went out of business in 1966.

Before Lionel entered the scene, Ives Corp. dominated the toy train manufacturing in America. Founded in 1868, this toy firm developed a mechanical clockwork locomotive giving its trains the edge of self-propelled motion. Around 1900, Ives faced competition from European toy makers. Ives then produced colorful electric locomotives with the first automatic reversing units. Heightened competition from Lionel and American Flyer led to Ives declaring bankruptcy in 1928.