Postwar production continued at a facility in the Upper Palatinate (Oberpfalz), with the company beginning its slow recovery with the manufacture of window hardware.

Led initially by Lone Star Toys of Great Britain and Trix of Nürnberg, there was a movement toward an even smaller scale.

Both companies experimented earlier with "floor toys", unpowered model trains designed to be moved about by child power.

Lone Star dropped by the wayside after a period of time, but Trix continued experimentation and development of what would be their electric powered Minitrix product line.

Ernst has been described as a dynamic businessman, the person most responsible for the introduction of the Arnold Rapido product line.

Karl Arnold passed on in October, 1946, leaving his son and Herr Ernst as principals in the Company.

It is during this period that the "Rapido Coupler" comes into production, beginning its widespread use by all model train manufacturers in N-Scale.

This relationship was marked by the beginning of production of more accurate North American prototype models by Arnold.