The Magura Interview
Magura is the most traditional company in the German bicycle industry. 130 years after its founding, Fabian Auch, the great-grandson of Magura founder Gustav Magenwirth, is leading the company. In our interview, he reveals why Magura still manufactures its brakes in Germany and why he doesn’t have time to ride motorcycles.
The speakers emit a first crackling sound and then he is also visible on the screen. Fabian Auch is sitting in his office in a yellow house, rocking a T-shirt and a well-groomed beard. The webcam on his computer not only shows him but also the back wall of his office. Next to a historic Magura clock hangs a signed poster of Danny MacAskill and Fabio Wibmer. Even through its a video chat, facial expressions and gestures show that the atmosphere in the Magura headquarters is good. Optimal conditions for our interview with the CEO of the Magenwirth Group.
Ludwig Döhl: Mr. Auch, let us virtually dive into the nightlife together. I neither know you nor the company Magura, so I ask you over a beer at the bar: What do you actually do for a living?
Fabian Auch: It depends on where the bar is located. Magura is well-known in this region. Even if many people claim not to know the company, they have at least heard of us. I’m always surprised by that. To put it shortly: at the bar in the nearby village, I would say that I work at Magura. If we were sitting in a pub in Hamburg, I would tend to say that I run a medium-sized family business that processes high-performance plastics with unique quality in Germany.
LD: I would have expected you to play their trump card and say: I am in charge of Magura. We revolutionised the mountain bike market with the introduction of the disc brake. Why not say that?
FA: You can look at it objectively. With a 130-year history and the milestones we have achieved, we are the oldest German company in the bicycle industry. We are not only aware of this, but we are also proud of it. However, one must also be honest and realistic. Our major milestones in bicycle technology development are a few years ago. The HS brakes were introduced to the market in the late 80s. The first Gustav M disc brake went over the counter in 1996. I think we did groundbreaking work as a company back then. But would you boast about your elementary school graduation over a beer at the bar?
LD: Not really.
FA: You see, we don’t either. That’s just so long ago.
If you constantly have the past in sight, you miss the future. We also have absolutely innovative products on the market right now. Our ABS, which we developed together with Bosch for e-bikes, is a big deal. What really makes us unique today is that we not only develop such systems, but can also manufacture them right here on site.
Fabian Auch – Magura
We are proud of it, and that’s how I would describe my job.
LD: So the really big milestones such as the introduction of disc brakes in the sports bicycle sector have already been achieved. Objectively speaking, there isn’t much room left to revolutionise mountain biking again, as Magura did in the 80s and 90s. Or do you have a different insight?
FA: I am not a developer. But even as a business economist, it is clear to me that the disc brake system is highly refined. It is more about evolution here. The times of revolution are over. However, if you look beyond the horizon, for example, in the automotive industry, you can see the topic of “brake by wire”. That is, electronic braking. However, we are not currently promoting this, because our preliminary investigations have already shown some hurdles.
LD: I wouldn’t trust an electronic brake either.
FA: That’s why such systems in cars are only coupled redundantly with a conventional system. However, it would be quite unattractive to suddenly have to install four brakes on a mountain bike. As I said, currently, this is not a big topic in the bike industry.
LD: But it’s exciting that as a CEO, you have insights into many different industries. You work in the bike sector with your own brand, but you also supply the motorcycle and automotive industry. Where is the grass greener?
FA: It must be said clearly: The automotive sector operates in a more structured manner. There are surprisingly accurate sales and demand plans in place. Many things are more predictable in that field. But we must also consider the other side of the coin.
Until we reach an agreement to sign the contract with an automobile supplier to produce a part for them, we have often already manufactured and delivered the product in the bicycle industry.
This rigid administrative corset of requirements and regulations does not exist in the bicycle industry. You can simply move more freely here in the bike industry. And I would like it to stay that way. It will be unavoidable for more structures to enter the world of cycling as well. The meadow of the automotive industry certainly has a beautiful green, but it should not be the goal of the bicycle industry.
LD: Are you more of a bicycle or motorcycle rider yourself?
FA: I almost hesitate to say it, but I don’t actually have a motorcycle license. Cycling, on the other hand, is a big passion of mine. That’s why I wouldn’t even have time to ride a motorcycle.
LD: Magura is known for effectively using the freedom of the bike industry in its marketing. Brakes have been advertised with pin-up girls or with themes in men’s restrooms. How much freedom can one still allow oneself today?
FA: I think this is an area where we should be considered role models for other industries. Whether it’s in external communication or in internal collaboration. I don’t think campaigns like the ones mentioned would be done today, but the equal hierarchy and collaboration that we maintain in the bicycle industry are certainly unique.
LD: Let’s change the subject: Have you ever calculated how much a Carbotecture brake lever from Asia would cost?
FA: Of course. We can’t ignore the reality of the global market. If we were to build brakes like any other competitor, we wouldn’t be able to produce them in Germany. But thanks to our expertise in processing high-performance plastics, we have a unique opportunity to stand out from the competition. We have invested a lot in research and development and have built our own facilities in a way that we can proudly say today that nobody can produce our brake lever more efficiently than we do here in Swabia. What we do here cannot be done cheaper in Asia either.
LD: Probably just a matter of time until it gets cheaper somewhere?
FA: It is a matter of a lot of time and energy.
We consciously decided against the trend of outsourcing production abroad. In order to sustain this decision in the long term, we were forced to put a lot of brain power into our business, in order to be able to produce competitively with leaner processes here on site.
These skills and resources, at least I believe so, are not built up quickly. When we look beyond the high-performance plastics, it’s a different story. For example, our brake calipers for MT disc brakes are manufactured by Magura Asia in Taichung.
LD: So the location selection is done pragmatically?
FA: Not at all. Our goal is to position ourselves as globally competitive, but with its core in Bad Urach. If it is not possible in some areas here, you can’t approach it romantically. We question at every step whether it is possible to do this economically in our factories in Hülben or Hengen. If that’s not possible, we question why it’s not possible. In the case of the brake lever, we realised that we have to produce it from Carbotecture in order to continue production in Germany. And that’s what we did. We owe this level of care to our employees as well when making such important decisions. Magura has been in Bad Urach for 130 years. We are deeply rooted here and want to keep it that way.
LD: In that sense, there is still a lot of potential in the Carbotecture material. You could also manufacture derailleurs or shift levers from this material. Is that on the to-do list?
FA: The material would allow for it, no question. However, looking at the latest technical developments on the market, it must also be said that creating such a shifting unit is not something that can be done quickly. Currently, we don’t want to open that door, also because we see potential in our core areas. Products like our ABS system or the MCi cockpit make it clear that we won’t get bored anytime soon. In the last 10 years, no newcomer has managed to establish themselves in this field.
The brake is not only a safety-relevant component, but sometimes also a highly emotional topic among bikers. Individual preferences meet pure braking power here. For many bikers, the question of how their bike is produced is becoming increasingly important. It’s often not just about how the bike rides anymore, but also about where its individual parts are manufactured.
Both in terms of braking power and the question of regional production, Magura scores points. And that’s why you can find all bikes that come factory-equipped with a Magura braking system at this link. And of course, we offer the same service for e-mountainbikes as well at this link.
