MIFA Mitteldeutsche Fahrradwerke

Sachsenring Bike Manufaktur GmbH
legal form	Company with limited liability
founding	1907
Seat	Sangerhausen , Germany
management	executive Director Stefan Zubcic Matthias Herold
Number of employees	135 (January 2018)
Branch	Bicycle manufacturer
Website	www.sachsenring-bike.de

The Sachsenring Bike Manufaktur GmbH , especially among former name as a means German MIFA bicycle works known, is a German bicycle manufacturer in Sangerhausen ( Sachsen-Anhalt ). In addition to its own name, the company uses the brand names "BIRIA", "GRACE", "JUNG", "Steppenwolf", "VAUN" and "Zündapp".

The company, which dates back to a founding in 1907, achieved great fame in the 1920s for its success in cycling. During the two world wars, the company completely switched from bicycles to armaments. After the end of the Second World War , the construction of bicycles was resumed by the bicycle works Mifa of the Soviet stock corporation “Awtowelo” , from which in 1950 the VEB MIFA-Werk Sangerhausen emerged . From the establishment of the German Democratic Republic to the takeover by the TreuhandanstaltIn 1990, more than nine million bicycles were delivered, of which around 1.5 million were folding bicycles, also known colloquially as “mini-bikes”. The company, which continued under the abbreviation MDF from 1990, was not competitive on the world market . An attempted restart as Fahrradtechnik Sangerhausen GmbH in 1993 after the acquisition of machines and stocks by two investors from Switzerland failed after two years.

In 1996 Peter Wicht and Michael Lehmann acquired the majority of the Auffanggesellschaft, changed the name to MIFA Mitteldeutsche Fahrradwerke GmbH and listed it on the stock exchange in 2004 as MIFA Mitteldeutsche Fahrradwerke AG . From 2011, the product range was expanded to include numerous brands through acquisitions. With more than 500 employees and an annual production of 400,000 bicycles, the company was the largest employer in the southern Harz in 2013. However, the company ran into trouble in 2014. A break in negotiations with the Indian Hero Cycles , which had initially announced that it would take over the majority of the shares, was followed by bankruptcy. Despite the entry of the family around the entrepreneur Heinrich von Nathusius in December 2014 and subsequent extensive investments, the company, now registered as MIFA-Bike Gesellschaft mbH , was again insolvent in January 2017. In July 2017 it became known that the bicycle production would be sold and continued under the company Sachsenring Bike Manufaktur .

history

• Historical logos
• 
• 
• 
• 

Central German Bicycle Works GmbH (1907–1945)

The original bicycle factory was founded by Emil Schütze and Emil Hesse (1873–1936) in 1907. The businessman Emil Schütze was a trained watchmaker and had been running a shop in Sangerhausen at 28 Kylische Strasse since the end of the 19th century. In addition to watches, optical devices, sewing machines and musical works, he also sold bicycles from various manufacturers. For his new business he was looking for a specialist in bicycle construction and found what he was looking for in Emil Hesse from Rötha , who had previously worked as a bicycle technician in Johann Puch's STYRIA bicycle factory or Styria-Dürkopp Werke (SDW) in Graz . After just one year, the company with 35 employees was already producing 1,000 bicycles a year, initially under the brand names "Barbarossa" and "Million", and from 1912 finally under the brand "Mifa". By 1913, production could be increased to 4,000 pieces per year. However, during the First World War , production was shifted from bicycles to grenades.

Only after the departure of the founder Emil Schulze and the entry of the Berlin businessman Lihmann as an investor was bicycle production resumed in 1920. In 1921 the merchants Guggenheimer, Karstedt and Höfling from Berlin were added as partners until the company finally passed into the ownership of the Berlin printing company Huck in 1925 . In the same year, the expansion of the production facility and the introduction of the assembly line enabled the production of 79,000 bicycles with around 700 employees in 1927. At the same time, the company switched from retail to a system of over 200 sales outlets and direct sales with shipping ex works . The company made itself massively unpopular with dealers, all the more since other providers soon followed their example, including market leader Opel . The engine of the business in those years was racing. Mifa relied heavily on advertising and therefore had its own racing team from 1924. The Italian world champion Alfredo Binda , the Swiss Heiri Suter and the German riders Bruno and Rudolf Wolke were successful on the company's bicycles. The best racing bikes of the professional racing drivers under contract were each referred to as the “championship model” and developed into sales successes.

The 1930s saw a decline. In addition to the consequences of the global economic crisis , restrictions imposed by the economic policy of the National Socialists also led to the collapse of direct sales. The production dropped to 20,000 bicycles annually. After the death of co-founder Emil Hesse in 1936, who had worked for the company until the end, his son Otto (1899–1979) took over the management.

An explosives store was set up on the site as early as 1937 and ammunition was produced in addition to bicycles. In 1939, bicycle production was finally stopped and completely converted to war economy (including tail units for Junkers aircraft). With the help of so-called foreign workers from the Soviet Union , France and Italy , Mifa soon manufactured not only grenade detonators but also cable-laying trolleys for intelligence troops and transport carts for transporting the wounded.

Bicycle works Mifa of the Soviet joint-stock company "Awtowelo" (1945–1949)

On April 12, 1945, the US armed forces first marched into Sangerhausen and used the Mifa's production facilities to repair their equipment. In July 1945 the Red Army followed , which promptly approved the operation. Initially, lighters and curlers were made from the aluminum left over from armaments production, but stovepipes and various other parts were also made to order. The production of two-wheeled carts started in August and by October 1945 743 Mifa carts had been completed, some of which were still in use in Sangerhausen for decades.

After the pre-war owners were expropriated without compensation, the company became part of SAG Awtowelo (AWO) on August 1, 1946 . Otto Hesse remained the plant director until November 1947, but was then released and then sent to Bautzen prison for several years , a prison used by the Soviet military administration in Germany for war criminals, and later increasingly for political prisoners who were called opponents of Stalinism.

From 1946 onwards, bicycles were built in Sangerhausen again, as early as 9,483 in the first year, but until 1949, almost without exception, they had to be delivered to the USSR as reparations .

VEB Mifa-Werk Sangerhausen and IFA Zweiradkombinat Suhl (1950–1990)

Decorative figure of a cycling woman on a bike of the VEB MIFA Fahrradwerke Sangerhausen at the Leipzig autumn fair in 1954

In the newly founded German Democratic Republic, the Central German Bicycle Works were converted into a state-owned company in 1950 . In the same year around 117,000 bicycles were built by 1,100 workers.

In the 1950s, the production profile was characterized by classic touring bikes, sports bikes and children's bikes. As a result of the range streamlining in 1959, the sports bikes were no longer available. In 1967 the production of folding bicycles was started, of which more than 1.5 million units were built by 1978 and which are considered classics in GDR bicycle history.

In 1969 the MIFA plant was affiliated to the Vehicle Construction Association for Two-Wheeler Combination Suhl (IFA). The production buildings in Sangerhausen were modernized and three new halls were added. In 1969 Mifa took over the sport bike production of Diamant , because it was planned to give up Diamant as a bicycle manufacturer. On August 23, 1973, the 5 millionth bicycle since 1946 rolled off the assembly line. Large parts of the production were exported, also to West Germany under a different brand name. The classic touring bikes with 28-inch wheels have been replaced by more modern 26-inch touring bikes. From 1979 these were also offered as 28s. Mifa also manufactured luggage bikes, racing bikes for children, indoor sports bikes, tandems (from 1986), BMX bikes (from 1988) and the “Exkurs” trekking bike (from 1989). A mountain bike should go into production in 1990. IGH were not available in the GDR, after all, the sports wheels were increasingly in the 1980s with 3-, 5- or 10-speed derailleur equipped. After exports were temporarily stopped, Mifa began selling bicycles again in the 1980s under other brand names such as "Exclusiv" or "Schneider", where they served the low-price segment. Despite the increased number of variants in the 1980s, MIFA had fallen far behind the world standard. This was mainly due to the outdated supplier parts such as brakes, gears and bottom brackets. In the 1980s, some models were still equipped with painted steel rims, stamp brakes and bell bottom brackets . In addition, the processing quality deteriorated. Mifa produced more than nine million bicycles as a state-owned company.

MDF and Fahrradtechnik Sangerhausen GmbH (FaSa) (1990–1995)

In 1990 the company was taken over by the Treuhandanstalt . The bikes supplied by Mitteldeutsche Fahrradwerke, now abbreviated as MDF, proved to be inferior to the new competition. The workforce was reduced from 1,500 to around 100 workers and all departments that were not used for production were dissolved.

In August 1993, machines and stocks were bought by Urs Haymot and Franco Knill, two business people from Switzerland, and the company was continued as Fahrradtechnik Sangerhausen GmbH (FaSa) in three halls from the 1970s that were rented by the trust. The remaining buildings, mostly from the pre-war period, were subsequently demolished. Just two years later, the company had to file for bankruptcy.

MIFA Mitteldeutsche Fahrradwerke GmbH and MIFA Mitteldeutsche Fahrradwerke AG (1996–2014)

Bicycle factory Sangerhausen in 2012

In 1996 Peter Wicht and Michael Lehmann acquired the majority in the rescue company, returned to the traditional name by renaming it to Mitteldeutsche Fahrradwerke GmbH , and from 1999 concentrated on sales for retail chains and mail order companies. From May 2004, MIFA shares were traded on the Frankfurt Stock Exchange. In the same year, the company produced 737,000 bicycles and achieved sales of 82.91 million euros.

In 2006, MIFA took over inventory and customer contracts from the Biria Group for eight million euros . The direct competitor ran into trouble and had belonged to the American investment company Lone Star since December 2005 . MIFA paid the purchase price through a capital increase of 2 million to 8 million euros and the issue of new shares to Lone Star , which subsequently held a 25% stake in MIFA. The Biria bicycle factory in Neukirch / Lausitz was closed by Lone Star at the end of 2006, the Biria subsidiary Bike Systems GmbH with production in Nordhausen was insolvent in August 2007. Marcus Brüning, interim boss at Bike Systems , switched to the MIFA board in April 2007 and there were no orders from MIFA. A red “strike bike” recently manufactured by the employees in Nordhausen as a protest against Lone Star attracted some media and political attention, but could not stop the market shakeout in favor of MIFA. In the first quarter of 2008 MIFA reported a decline in sales of around 10% compared to the same quarter of the previous year, but a profit increase of 20%. In the course of the economic crisis, both the number of bicycles sold (to 614,000 units in 2009) and the number of employees fell.

In October 2011, the financial entrepreneur Carsten Maschmeyer took over a share of almost 29% in the company from Michael Lehmann. He increased his stake to 33% in March 2012, which made him the largest single shareholder. At the same time, CEO Wicht increased his own stake to over 30% and was thus the second largest shareholder.

In March 2012 Grace GmbH & Co. KG , a manufacturer of electric bicycles in Berlin, was taken over. In August 2012, the Bavarian bicycle manufacturer Steppenwolf , which had recently filed for bankruptcy, was taken over. In the 2012 financial year, MIFA sold 546,000 bicycles (2011: 644,000). It achieved sales of EUR 111.3 million. E-bikes accounted for 30 percent of sales (2011 the share was 12.5 percent).

In mid-March 2014, when preparing the annual balance sheet for 2013, it was found that MIFA had posted a deficit of 15 million euros in the past financial year and had also made losses in the previous years. In the preliminary business figures for 2013, a turnover of 110.7 million euros was determined. When the details became known, the Mifa share price fell by around 50% within a few days. In April 2014, the company's board member and major shareholder Peter Wicht resigned, against whom an investigation was initiated for investment fraud. The Mansfeld-Südharz acquired in the same year the company's premises in Sangerhausen for 5.7 million euros. The aim was to save the badly ailing company with “fresh money”. The amount should flow back to the district through rent payments over the next 15 years.

In August 2014, the Indian manufacturer Hero Cycles announced that it would take over 60% of the shares in MIFA for 15 million euros. Another 4 million euros should be invested in restructuring the company. By the end of September 2014, however, the negotiations were broken off. Mifa board members accused Hero Cycles of copying production processes and using them to build their own new factory in Asia. On September 29, 2014, the company applied to the competent District Court Halle (Saale) the bankruptcy .

In October 2014, Deutsche Balaton AG acquired around 16% of MIFA's share capital (1,575,000 shares) and presented an “alternative restructuring concept”. In the event that the restructuring concept could not be implemented, a reversal of the purchase was agreed with the seller.

MIFA-Bike Gesellschaft mbh (from 2014)

On December 11, 2014, the family around the entrepreneur Heinrich von Nathusius took over the bicycle manufacturer as part of an asset deal . The takeover took place retrospectively as of December 1st. The state of Saxony-Anhalt supported the purchase with a loan in the "low double-digit million range" from the Sachsen-Anhalt investment bank and by assuming a state guarantee. The company name was changed to MIFA-Bike Gesellschaft mbh . At the end of December 2016, a new plant in Sangerhausen went into operation for 17 million euros.

Emerging rumors in the media about the company's financial difficulties were initially rejected by its owners. On January 4, 2017, however, the management filed for insolvency at the local court under its own responsibility. Managing director Heinrich von Nathusius left the company. After a three-month grace period, the regular insolvency proceedings were opened at the end of March. Sales negotiations with the Puello family from Schweinfurt failed at the end of May because of the new hall, which was probably financed from private funds and did not belong to the company's assets. On July 1, 2017, the company was about to be broken up. In July 2017, the insolvency administrator announced that an agreement had been reached with the Coburg manager Stefan Zubcic. Zubcic had acquired the automotive supplier Sachsenring three years earlier and now intended to continue MIFA bicycle production under the Sachsenring Bike Manufaktur company .

Sachsenring Bike Manufaktur GmbH (from 2017)

Production started again under the newly founded company with 130 of the formerly almost 600 employees in the old production hall. The rest of the Mifa-Bike as well as the new hall remained the property of the von Nathusius family. Zubcic had also refused to pay the requested price for the hall. After short-time work in the first few months, the company switched to regular production at the beginning of 2018, with the aim of achieving an annual production of around 200,000 bicycles. The same customers were won as buyers that Mifa had previously supplied, especially large German discount chains. The bike rental company nextbike will also be supplied in 2019.

production

Most of the individual parts are purchased from around the world, with painting and final assembly following in Sangerhausen. When it went public in 2004, the company described its production using the motto “buy globally, process locally”. The company management under Peter Wicht was often criticized for particularly low hourly wages, but pointed out that for competitiveness in terms of price compared to the competition from China , the focus was not on wage cost dumping, but on modern production and new products such as B. the e-bikes produced since the purchase of Grace .

Trivia

As for many other companies in the German Democratic Republic, there were numerous slogans in circulation with which the MIFA plant and its products were mockingly "poked". Above all: "If you drive Mifa, you never go wrong because Mifa doesn't drive at all" or "A piece of sheet metal, a piece of wire, and the Mifa bike is ready" to "If you drive Mifa, it's worth threshing" . The sayings also served to distinguish them from diamond bicycles, which enjoyed a higher reputation and were actually of higher quality, especially in the 1950s and 60s.

brand names

Quality and own brands

• "Barbarossa" and "Million" (1907–1912)
• "MIFA" or "Mifa" (from 1912)
• "Exclusiv" (1980–1990) GDR export bicycles
• "Steppenwolf" (since acquisition of trademark rights in 2012)
• "GRACE" (since the takeover of the e-bike manufacturer of the same name in 2012)
• "VAUN" (since 2016)

Private labels for mail order, construction and supermarkets

• "Cyco"
• "Germatec"
• "FunLiner"
• "McKenzie"
• "BIRIA" (since acquisition of the trademark rights of the former Biria in 2006), often with the addition "made by MIFA"
• "YOUNG"
• "Zündapp" (brand name of the former motorcycle manufacturer Zündapp , used since around 2014)

Models (selection)

• 

  Bicycles at the MIFA stand at the Leipzig trade fair in 1951

• 

  Mifa children's bike "Model S 8", built in 1955 ( Dresden Transport Museum )

• 

  Mifa "Universal Model 510", built in 1984 (Dresden Transport Museum)

• 

  Mifa "Model 160", built in 1985

• 

  Beach cruiser for women

• 

  MIFA "German Cruiser", around 2006

• 

  Cyco youth bike, around 2007

• 

  Germatec MTB, around 2007

• 

  MIFA folding bike, around 2015

Web links

Commons : MIFA Mitteldeutsche Fahrradwerke  - Collection of images, videos and audio files

• Overview of all bicycle models up to 1990 in the GDR bicycle wiki
• Articles from the time about the IPO, company structure and wages
• Critical article about the MIFA's collaboration with a Texas hedge fund
• Bicycle collection of the brands MIFA, DIAMANT and MÖVE in the vehicle museum in Staßfurt

Individual evidence

1. ↑ ^{a b} Bicycle manufacturer Mifa will in future be called “Sachsenring Bike Manufaktur” . In: Frankfurter Allgemeine Zeitung , July 20, 2017
2. ↑ ^{a b c d e f} Tilman Wagenknecht: Mifa - Mitteldeutsche Fahrradwerke GmbH Sangerhausen . From: Fahrradsammler.de , accessed on January 4, 2017.
3. ↑ ^{a b c} The history of the Central German Bicycle Works - From the origin of the bicycle . From the company's website, accessed January 4, 2014.
4. ↑ MIFA buys assets from the Biria Group , DGAP announcement December 6, 2006, accessed on January 5, 2017.
5. ↑ US fund invests in bicycle manufacturer MIFA ( memento of the original from January 6, 2017 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. . In: Sächsische Zeitung , December 7, 2006, accessed on January 5, 2017 
6. ↑ ^{a b} Oliver Haustein-Tessmer, Dirk Nolde: The bright red uprising of the bicycle workers . In: Die Welt , October 2, 2010, accessed January 5, 2017.
7. ↑ Oliver Haustein-Tessmer: AWD founder: Maschmeyer enters the bicycle business ( Memento of the original from March 28, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. , in: Spiegel Online , October 6, 2011, accessed January 4, 2017. 
8. ↑ AWD founder: Maschmeyer buys from bicycle manufacturer , in: Spiegel Online , March 12, 2012, accessed on January 4, 2017.
9. ↑ MIFA takes over premium manufacturer Steppenwolf , DGAP announcement, August 21, 2012, accessed on January 4, 2017.
10. ↑ MIFA: Publication of the preliminary business figures 2013 , DGAP announcement of September 17, 2014, accessed on January 4, 2017.
11. ↑ Indians should receive 27 percent of the bicycle manufacturer Mifa . In: Wirtschaftswoche , March 25, 2014, accessed on January 4, 2017.
12. ↑ Karl-Heinz Klarner: Suspected fraud against bicycle manufacturers from Sangerhausen. At Mifa, the public prosecutor called up the floor in Mitteldeutsche Zeitung , August 27, 2014, on January 4, 2017.
13. ↑ Exactly exclusive: the district acquired an apparently very overpriced property from the bicycle manufacturer Mifa . In: Mitteldeutscher Rundfunk , March 1, 2017, accessed on May 6, 2017
14. ↑ India's largest cycle manufacturer, Hero, acquires German bicycle co MIFA. (No longer available online.) In: Firstbiz. August 25, 2014, archived from the original on August 28, 2014 ; accessed on January 4, 2017 (English). Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  
15. ↑ Total loss in the bicycle industry. In: Handelsblatt . September 29, 2014, accessed October 3, 2014 . 
16. ↑ Maschmeyer as a major shareholder: Bicycle manufacturer Mifa files for bankruptcy. In: Spiegel Online . September 28, 2014, accessed January 4, 2017 . 
17. ↑ Deutsche Balaton AG becomes a shareholder in MIFA Mitteldeutsche Fahrradwerke AG i. I. , DGAP announcement, October 16, 2014, accessed on January 4, 2017
18. ↑ MIFA: Company sale as part of an 'asset deal' , MIFA press release of December 12, 2012.
19. ↑ Dominik Bath: Nathusius buys bicycle manufacturer: Haldensleber family saves Mifa . In: Volksstimme.de , December 12, 2012, accessed on January 4, 2017
20. ↑ Mifa starts production in a new plant ( memento of the original from January 5, 2017 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. . In: Mitteldeutscher Rundfunk , December 21, 2018, accessed on January 5, 2017. 
21. ↑ Bicycle manufacturer Mifa insolvent ( memento of the original from January 4, 2017 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. . In: Mitteldeutscher Rundfunk , January 4, 2017, accessed on January 4, 2017. 
22. ↑ Mifa - what to do next ( memento of the original from May 19, 2017 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. . In: MDR Sachsen-Anhalt , accessed on April 5, 2017 
23. ↑ Katrin Terpitz: The Puello family jumps from Mifa . In: Handelsblatt , May 31, 2017, accessed on March 4, 2018
24. ↑ Ralf Geißler: 100 days of Mifa under a new name and new boss ( memento of the original from March 4, 2018 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. . In: Mitteldeutscher Rundfunk , November 2, 2017, accessed on March 3, 2018 
25. ↑ Frank Schedwill: Sachsenring Bike "We're going full speed" . In: Mitteldeutsche Zeitung , January 8, 2018, accessed on March 3, 2018
26. ↑ Leipzig rental company Nextbike orders 40,000 bicycles from Sachsenring Bike. In: Leipziger Volkszeitung. January 29, 2019, accessed February 7, 2019 . 
27. ^ ^{A b} Carolyn Braun: sheet metal to the stock exchange . In: Die Zeit , May 13, 2004, accessed January 6, 2017.
28. ↑ ^{a b} Matthias Loke: The banker is now also cycling , interview in Frankfurter Rundschau , August 11, 2012, accessed on January 6, 2017.
29. ↑ Matthias Loke: The East German bicycle manufacturer wants to go public: Who drives Mifa, never goes wrong ... . In: Berliner Zeitung , April 16, 2004, accessed on January 6, 2017.

Coordinates: 51 ° 28 ′ 15 ″  N , 11 ° 17 ′ 23 ″  E