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Lionel - The First Slot Car

The first commercial slot cars were made by Lionel (USA) and appeared in their catalogues from 1912, drawing power from a toy train rail sunk in a trough or wide slot between the rails. They were surprisingly similar to modern slot cars, but independent speed control was available only as an optional extra. Production was discontinued after 1915.

Sporadically over the next forty years, several other electrically powered commercial products came and went. Although a patent was registered as far back as March 1936 for a slot car, until the late 1950s, nearly all powered toy vehicles were guided by raised rails, either at the wheels (railroad-style), or at the lane center, or edge.

• Lionel Power Passers

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American Flyer Brand

In May 1967, Lionel Corporation announced it had purchased the American Flyer name and tooling even though it was teetering on the brink of financial failure itself. A May 29, 1967 story in The Wall Street Journal made light of the deal, stating, "Two of the best-known railroads in the nation are merging and the Interstate Commerce Commission couldn't care less." Former Lionel treasurer Robert A. Stein said Lionel did not initiate the deal; both companies had farmed out their accounts receivable departments to Arthur Heller & Co., who initiated the transaction. While various accounts published over the years valued the deal at $150,000, Stein's recollection was that Lionel simply liquidated $300,000-$400,000 worth of American Flyer inventory for Heller in exchange for the tooling, which, by some accounts, sat unused and neglected in a parking lot for some period of time. Lionel Corporation never manufactured American Flyer trains.

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American Flyer Redux

The American Flyer brand name survives today under the guidance of Lionel, LLC, although Lionel's advertising and marketing emphasis seems to remain locked on promoting its own O and O27 gauge product lines. True American Flyer aficionados claim this narrow focus is a conflict of interest and prevents the growth of S Gauge among new train operators. Most of the American Flyer-branded product sold by Lionel, LLC today is reissues of 1950s designs utilizing refurbished old Gilbert tooling, decorated in traditional road names and paint schemes used by Gilbert, as well as an influx of some of today's modern railroad heralds. One complaint by longtime American Flyer devotees is that Lionel isn't creating Flyer products that appeal to the toy train masses - rather, focusing instead on a small market of Flyer collectors.

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Growing Demand for Trains

Long gone are the slot car offerings, however each year since 2002 Lionel has increased the number of American Flyer offerings, a sign the demand for 3/16" S gauge is growing. In late 2004, Lionel finally debuted a new steam locomotive - a highly-detailed, 2-8-2 Mikado in multiple road names. Utilizing all new tooling and issued under the American Flyer name, the Mike is the first original American Flyer steam locomotive design since the late 1950s. Complete with TMCC (Lionel's proprietary wireless remote control technology) and a superb sound chip/system (TrainSounds), the Mikados proved to be a hot seller and their success has led to future similar issues. In late 2006, Lionel began delivering an updated remake of its largest steam locomotive, the famous 4-8-4 Northern, as well as a gray Union Pacific Northern with smoke deflectors (elephant ears); both new versions have digital sounds.