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Discussion Starter · #1 ·
:? how does licensing work for diecast manufacturers? is it like construction projects, where projects are up for bids?
 

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It is usually a case of a car manufacturer/racing team selling the rights to the highest bidding model manufacturer or giving the rights to a model manufacturer so long as they get a cut of the profits.

The easiest example to look at is Ferrari . It is believed that Mattel paid an 8-figure sum (in dollars) to Ferrari for exclusive rights to make their cars as 1/18 models. The problem with this is that in order to make up such an investment, Mattel would have to make a great number of low quality models to recoup the costs, much to the dismay of so many collectors.

A different example is Ford. The Beanstalk Group is responsible for merchandising for Ford so they have Ford's full co-operation and assistance when replicating their models. Also because the Beanstalk Group is run by Ford, Ford gets most of the profit made.
 
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Discussion Starter · #3 ·
The easiest example to look at is Ferrari . It is believed that Mattel paid an 8-figure sum (in dollars) to Ferrari for exclusive rights to make their cars as 1/18 models..


Eight figure sum? Ouch!!! :oops:
 
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Discussion Starter · #8 ·
Eight figure sum? Ouch!!! :oops:
Not only that but Hot Wheels invested $1 million (US) alone on developing the Ferrari Enzo in 1/18. It's a shame that it doesn't show in the model itself though.
wow... $1 million on developing the Enzo. hmm, the model definitely does not reflect it... so where did all the money go? :? normally i would i guess marketing, but i've never seen mass campaigning for diecasts...
 

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Mr. Sandman
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The easiest example to look at is Ferrari
Some speculate that Hotwheels paid $50 Million for the rights to make Ferrari diecasts. In my opinion I think that if Hot Wheels would of made the Ferrari's in the quality of Kyosho or AUTOart it would of been a good deal but since they are not AUTOart or Kyosho quality.............., well the least Ferrari could of done was put some decals of Hot Wheels on their F1 cars.
 
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Discussion Starter · #10 ·
I'm willing to bet that Hot Wheels recoups every penny they paid for the Enzo rights and also generate a hefty profit in the process. I don't know for certain if they indeed paid big bucks for the Enzo, but if they did, we as collectors can forget about seeing it produced by any other manufacturere for some time to come. :???:

I like the BG groups models, I wonder if they could have made a better version of the 2003 SVT Cobra that Maisto produced. :mrgreen:
 

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I don't believe that Hot Wheels paid any more for the Enzo because from my understanding, the licence allows Hot Wheels to make any Ferrari model they wish to up until the end of 2004. I just hope that Ferrari don't make the same mistake and grant them the licence for another 5 years.
 
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Discussion Starter · #12 ·
I don't believe that Hot Wheels paid any more for the Enzo because from my understanding, the licence allows Hot Wheels to make any Ferrari model they wish to up until the end of 2004. I just hope that Ferrari don't make the same mistake and grant them the licence for another 5 years.
CSGT,

Not knowing first hand the success Hot Wheels has had with their Ferrari lineup, I would guess it to be highly successful. Being that 2004 is rightr around the corner, as much as I like Hot Wheels, I hope we don't see a repeat of this licensing.

I myself would like to see a AUTOart or even an Exoto Enzo in the worst way. :mrgreen:
 

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:iagr: , Ferrari needs to seriously think about who they grant the license to. I'm hoping, as most are, that Mattel doesn't get it again. But they probably will because only one thing matters, money, and Mattel has lots of it. Nobody cares about detail and quality anymore. :cry:
 

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I know that we all complain about the quality of Hot Wheels's Ferrari's but without these being available at their low price, there might be fewer people being introduced to this hobby.

I for one was not really involved in collecting diecasts until I saw the Hot Wheels models at local Wallmart and Grocery stores. I had to have them all and that culminated in my collecting more and more vehicles from other higher quality manufacturers.

Hot Wheels, while not offering the quality of AUTOart or Kyosho still puts out a fairly good model that can be picked up for less than $20.00. I just wish that they didn't have exclusive rights to the Ferrari brand but am glad that they are allowing Kyosho to build some higher quality models.

Now I'll have tp wait for the introduction of their Lusso to see if they are improving at all.
 
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Discussion Starter · #15 ·
C7,

You make some great points. This not only holds true for Hot Wheels, it also can be said about Maisto, Bburago and other premium models. These were the models that got me started in the hobby as well and I'm sure these will be the same models that bring us more collectors.

after reading your post, I found it to be all relative as it all ties in together. Not to many nebies start off with purchasing $100 models. :mrgreen:
 
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Discussion Starter · #16 ·
I know that we all complain about the quality of Hot Wheels's Ferrari's but without these being available at their low price, there might be fewer people being introduced to this hobby.

I for one was not really involved in collecting diecasts until I saw the Hot Wheels models at local Wallmart and Grocery stores. I had to have them all and that culminated in my collecting more and more vehicles from other higher quality manufacturers.
its not just these cheap models that get people into this hobby. if it weren't for ebay, i wouldnt have so much cars. its amazing how you can pick up a model which costs $75 at any diecast website shop, for less than $30 on ebay. now, why do most of these diecast websites suck our money so much?
 

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I don't dislike the fact that Hot Wheels do BUDGET models. Not at all. Budget models make up a sizeable percentage of my collection. It's because Hot Wheels have a complete monopoly over making Ferrari models and they are of such poor quality so they have no competition at all and therefore no incentive to make better models.
 
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Discussion Starter · #19 ·
I don't own any hotwheels 1/18 but I have seen some up close and they aren't that bad 4 a budget model, but I've haerd some of the ferraris ain't so good. but their prices aren't too bad 2 get started, I got started on $10 cars. If Hot Wheels has the license to ferrari, how did Bburago make some?? was that b4 mattel got the license?
 
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