Before becoming the supplier of Beijing Benz-Daimler Chrysler Corporation (BBDC), Shanghai Huizhong Saxophone Shock Absorber Co., Ltd. (SHS) has consistently topped the domestic market share. Now, SHS and BBDC have signed a long-term R&D and supply cooperation agreement, and the volume of supply will fully meet current and future production needs of BBDC. At the same time, in cooperation with other manufacturers, the demonstration effect of BBDC has played a huge role in the technological advancement of SHS, and it has also gained greater market share and profits for SHS. This is a typical example of a luxury brand buying in China, and then achieving a leap-forward development of auto parts companies. It is a good example for most companies traveling on the slow lanes. In the past 30 years of reform and opening up, China's auto parts industry has made remarkable achievements. Compared with the overall situation of the industry with low value-added, low-profit and low-tech industries, the overall strength began to gradually increase. However, at the same time, the current parts and components industry is also facing unprecedented challenges. Unlike the auto parts companies in western countries who were born and bathed in global new technology revolutions, most Chinese auto parts companies have been on the slow lane since their birth. The weak foundations and the lack of technological innovations are also lacking. Even more serious is that, despite a certain amount of benefits and market share, due to unclear understanding of the development direction of the auto industry, the development direction of these auto parts companies is not clear, and the initiative to overtake and merge into the fast lane is not strong enough. Inadvertently introducing new technologies, researching and developing new products, and establishing its own brand, it is satisfied with the production of low-tech parts, it is stuck in the low-end auto parts procurement market, and it is passive development for the development of the auto industry. The multinational parts giants have begun to occupy more and more market shares with their leading technological advantages and strong capital strength. They are even in an absolute leading position in key areas such as engines and automotive electronics. This puts forward higher requirements for the learning ability, management ability, and even willpower of local parts and components companies. Compared to most auto parts companies, the success of SHS depends to a large extent on the giant's shoulders, which is the conclusion of an industry expert after visiting the SHS. At the end of 2006, after reaching cooperation with BBDC, in the face of the unprecedented high-tech requirements of the two projects W204 and V212, SHS went all out to introduce a large number of advanced technologies and high-end talents, to strengthen employee training, and to use advanced technologies throughout the design, development and testing The entire process; in terms of technical applications, SHS boldly uses advanced hollow connecting rod technology and simultaneously adds valve systems to the connecting rods, which effectively enhances the accuracy of product control and improves the precision of damping force modulation. After more than two years of cooperation with BBDC, the product quality and production process of SHS have been continuously improved and the logistics system has been further optimized. The company has accumulated experience in working with top global brand manufacturers, and has achieved a leap in technological research and development capabilities and corporate profits. The future development of SHS has laid a more solid foundation. Shanghai ZF Leonford Chassis Technology Co., Ltd. is similar to SHS and is a stronger supplier. After acquiring BBDC's eight years of orders, and the volume of supply has increased substantially year after year, the joint venture has clearly defined the direction of the future – further consolidating its cooperation with BBDC and continuing to improve in accordance with Mercedes-Benz's globally uniform production and quality standards. Mercedes-Benz's global procurement system has entered the global market. The company expects that annual sales will exceed 800 million yuan before 2012. Of course, not every company can become an SHS. However, in their respective fields, each company is actually an SHS. In other words, every company has the opportunity to stand on the shoulders of giants and achieve rapid development.
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