That's right. I think their plan was to move it to China so that they could (obviously) save cost, but what happened was, it took almost a year or something like that to properly train staff to be able to make the bear properly, and the staff just left after they learned the tricks. Plus there were many sub-par dolls created - eyes not even, stitches not even etc etc...Eventually the CEO had enough and decided to pull out of China. The cheaper ones are still not made in Germany though. I think only higher end ones are still made in Germany.
I am also just started out on this, came to know about the brand by chance when it was mentioned in slightly off topic forum discussion and I goggled Steiff and just fell in love with the bear and quality.
And here's a pic of one of my Steiff who happened to just arrived today - he's still a bit jet-lagged. Little person costed me some dollars but how can you say no to that cute face?
I have a soft spot for teddy bears but I don't personally collect them. I do however have a friend that does collect Steiff bears as she can spend hundreds of dollars on them. They're nice classic style teddy bears, some of them are rare limited production ones that can cost several hundred dollars.
I have a Steiff teddy bear my grandparents bought for me in West Germany me before I was born. He's in terrible condition: one eye replaced, re-stuffed multiple times, holes sewn up, flat because I slept on him for years. I'm really glad I have such a well-loved childhood toy. It's actually this exact bear.