Passion Drives Taiwan Suppliers Toward High-end Suspension Parts

A passion for making high-end, customized suspension parts has moved Taiwanese suppliers in the line to do everything within their capacity to fine-tune products to either satisfy customers or achieve product differentiation from counterparts in China.

With years of dedication in developing auto parts, Taiwan has undoubtedly turned out to be the world's major supplying base in the sector, and built a solid name due to its strong commitment to quality and performance.

It was evident that Taipei AMPA 2007, a globally well-known trade fair for auto parts and automotive electronics, attracted a total of nearly 35,000 visitors, up 3.6% from 2006, and 4,214 foreign buyers mainly from the world's most dynamic auto markets, including Japan, the U.S., mainland China, Malaysia, Korea and Europe and so on. In other words, Taiwanese suppliers of auto parts have proven increasingly capable and reliable in the world.

Over the past years, Taiwan's export of suspension parts has steadily moved up to NT$180 million in 2004, NT$230 million in 2005 and NT$260 million in 2006, and is expected to further grow in 2007, despite a reported recession hitting the sector worldwide in the year.

To build recognition, Taiwanese suppliers of suspension parts have heavily sharpened their competitiveness by continuously pouring resources in R&D and production. Furthermore, some suppliers, driven by passion for cars, are even working with racing teams in Hong Kong, Macau or the U.S. to build brands via exposure at car races, which may eventually help to motivate foreign buyers to place orders.

Precision Suspension Parts

One supplier keen to turn out fine-tuned suspension parts for use in sport cars is Jihshyh International Co., Ltd., which was founded in 1998 in Taiwan's central county of Taichung, and has over the years built a solid reputation among carmakers worldwide.

Jihshyh started by making high precision parts for race cars in a small workshop, and has quickly accumulated considerable know-how in making suspension systems and related parts. Later on and to maximize profits, the company has moved to specialize in manufacturing high-end dampers, suspensions, shock absorbers and all kinds of suspension parts.

Backed by seasoned capability, Jihshyh can provide suspensions parts for McPherson strut type, double-wishbone and multilink suspension systems used in most popular cars. The company's suspension parts, sold under its own STD brand, have been well recognized by Japanese and the U.S. buyers.

Jihshyh's president Lin Wei-li says that his company pays strong attention to R&D, having a group specializing in fine-tuning suspension parts all the time. “First, we try to obtain original parts from auto makers, and do study on sizes of the parts,” Lin says. “And then, we improve the parts in visual design, performance, in an effort to attain the best functionality and operation of a suspension system; in other words, we want our suspension parts to work pretty well on a speedy race car.”

Jihshyh has worked with a fleet in Hong Kong for five years, and provided its suspension systems for use in the fleet's race cars every year. Noteworthy is that the fleet has won races held there four times in five years. “We can say that our suspension parts have helped the fleet to win races, and we are quite proud of excellence of our fine-tuning suspension parts,” Lin says. Also, by sponsoring the fleet, Jihshyh's STD-branded suspension parts have built a strong brand image globally.

In fact, Lin is very enthusiastic at car races, and this helps him to come up with quite a few new ideas for developing high-end suspension parts. “Our clients include parts wholesalers and, especially, car workshops, which are inclined to order highly customized suspension parts for use in race cars,” Lin mentions. “To make products dedicated to each race car, we actually study the types of tires the car uses and kinds of racetracks it is run on, as well as all the variables that influence suspension-related performance of cars.”

Unsurprisingly, passions urge Lin to develop the most fitted parts in such a costly way that, however, effectively guarantees performance of Jihshyh's suspension parts, and has aided the company to enhance its production capability.

To meet simmering demand for advanced suspension systems in premium cars in the world, Lin says he will introduce new technologies to develop active suspension systems and air suspension systems. Besides, Jihshyh has started construction of its new plants in Taiwan, and is underway to get approved by ISO standards and have its branded parts certificated by TUV. The company will attend Essen Motor Show and other professional auto exhibitions worldwide in 2008.

Gearing Up for Overseas Market

Silver's Int. Co., Ltd., founded in 1999 in central Taiwan, is a burgeoning maker of suspension parts, which is ambitiously gearing up to explore overseas markets targeting high-end models.

Silver's initially produced scooters and related aluminum-alloy parts, and has succeeded in diversifying its original production into suspension parts. At present, 70% of its production is on an OEM (original equipment manufacturing) basis and 30% on an ODM (original design manufacturing) basis. The company's suspension parts are quite popular in the U.S., Japan and Southeast Asia. Furthermore, it has effectively penetrated the Chinese market.

Simon Li, general manager of Silver's, indicates that he and his coworkers are quite interested in fine-tuning cars, and thus resolved to run the business despite the gradual downturn in domestic demand for customized parts in Taiwan. “To provide high-end suspension parts for customers, Silver's and its contract suppliers come together for a single objective, quality and put heavy emphasis on customer services to differ from rivals in mainland China,” Li says.

Silver's effectively handles customer services and quality in an efficient way that it codes all finished suspension parts with serial numbers depending on kilometers of the parts, and delivers finished parts, tagged with serial numbers, to customers, so that Silver's can quickly deal with problems on quality according to the serial number reported from customers. Silver's dedication to taking full responsibility for quality problems makes the firm more competitive than rivals in the Chinese market, according to Li.

Silver's has successfully developed its own “Silver's” brand in China by sponsoring car races in Macau and Taiwan. “Our brand name is seen in important races, and this increasingly helps Silver's to build a solid image in consumers' mind; I have to say that especially works in the Chinese market,” Li says. “Besides, to make products suited to the China market, we always try to achieve the best balance between performance and comfort with our suspension systems.”

Li shows the company's newly developed carbon-shaft engine damper kits, which feature ultra-light carbon shafts that have rubber joints. The new damper kits can effectively enhance engine-mount durability and helps engines work efficiently, which are perfect for Honda Civics and Integras, Mitsubishi Lancers and Virages, Nissan Silvias and Skyline GTRs, and other Japanese cars.

Li says that Silver's keeps learning advanced technologies and plans to develop a dual-piston shock absorber and electronics dampers, which are all high-tech suspension parts and have potential for significant gross profits. To broaden its global operations, the company will attend several major auto shows, including Japan's Auto Salon in Fukuoka, Taiwan's AMPA and U.S.'s SEMA Show next year.

Steadfast Loyalty

One veteran maker that has not only been dedicated to turning out suspension parts in Taiwan, but has also refused to move offshore for some three decades is WJ Auto Parts Co., Ltd., established in 1981 in central Taiwan.

WJ has considerable experience in metalworking and surface treatment, and boasts a comprehensive product line, including ball joint, sway bar link kits, chassis parts, motor parts, pinion steering, rack ends, rebuild parts, repair parts, side rod assembly, stabilized links, steering systems, suspension systems, tie rod ends and tie rod adjusting sleeves.

WJ has successfully exported finished products to Europe, Southeast Asia, the U.S. and Japan. Its suspension parts are very durable and popular in auto service sectors worldwide.

Ever since the outset, Leon Liao, WJ's general manager, has worked hard to improve its production processes and assures buyers of top quality. “Facing price hikes in metals and operation costs in recent years, we have done all we can to cut wastes and defective rates in production processes to stay afloat,” Liao says.

Also to offer acceptable prices in suspension parts, Liao says, WJ has not hiked quotations for five years, which also shows that the company has been able to sharpen production efficiency to achieve stable quality.

“We are already ISO 9001: 2000 approved, and spare no effort on controlling quality. Each piece of finished suspension parts will be checked by three to four operators during processes,” Liao expresses. “This is just like WJ's operators who are in charge of quality as QM (quality management) directors.”

Extra short delivery time is also WJ's pride—it takes no longer than 60 days from the day it receives orders to send finished parts. “This is much part of services we guarantee to clients,” Liao adds. However, such rapid delivery requires mature, efficient production capability that WJ has achieved.

In addition, WJ helps foreign buyers to outsource other kinds of auto parts in Taiwan, bridging well local suppliers in the sector to overseas trade. What Liao wants to do is simply offer diverse services for its clients and business partners, and “We charge the service for no additional fees from clients,” he says.

In terms of fierce rivalry against counterparts in China, Liao says, WJ is confident of quality, “I must say Taiwan-made suspension parts are far better than China-made in terms of products' durability and exterior. They have made a good progress in these years, but not enough.” However, WJ is consistently absorbing new technologies and upgrading its production to keep its competitive edges.

WJ plans to attend more trade shows in China to compete against rivals by offering good quality. Furthermore, the company will expand capacity in Taiwan to cope with an influx of foreign orders. Liao says also that his company will team up with Taiwan's electronics suppliers to venture into automotive electronics. "In fact, I meet partners worldwide via MSN (Microsoft's Messenger) frequently to develop business opportunities," he quips.