Adjust the structure, expand the market, strengthen management, and foster vitality.

　　——A Profile of Suzhou Shida Tongtai Automotive Components Co., Ltd. in Jiangsu Province

　　Special Correspondent Li Wenming, This Magazine’s Reporters Zhang Xiaolong and Yu Chunhua

　　Located on the picturesque shores of Yangcheng Lake in Jiangsu Province, Suzhou Shida Tongtai Automotive Components Co., Ltd. is a specialized manufacturer of stainless steel components for automotive exhaust systems. Originally established as the Wuxian Internal Combustion Engine Parts Factory, the company underwent restructuring in 1995 and was officially registered as Suzhou Shida Automotive Components Co., Ltd. In 2008, it was renamed Suzhou Shida Tongtai Automotive Components Co., Ltd.

　　In the 1990s, due to outdated production technologies and poor management, the former Wuxian Internal‑Combustion Engine Parts Factory found itself in dire straits: the enterprise suffered heavy losses, wages could not be paid on time, operations were severely hampered, debts mounted, and bankruptcy loomed. At that time, the state was encouraging collective enterprises to undertake institutional reforms. Following thorough democratic deliberation, the original Wuxian Internal‑Combustion Engine Factory unanimously agreed to restructure and registered as Suzhou Shida Automotive Components Co., Ltd. Comrade Lu Jianxin, vigorous, quick‑thinking, bold in his ideas and actions, and driven by a strong spirit of enterprise—widely supported by employees and endorsed by the organization—assumed the critical responsibilities of general manager.

　　In the early days of Shida Company, the workforce numbered fewer than 40 employees, working capital was less than RMB 6,000, and outstanding debts exceeded RMB 500,000. Faced with these mounting challenges, General Manager Lu Jianxin conducted thorough investigations and analyses, pooled the collective wisdom of all managers and staff, and decided to begin by “shifting mindsets, diversifying products, strengthening technology, and expanding markets.” He promptly established a technical‑upgrade leadership team, explored new technologies and products, phased out the original agricultural‑machinery parts, and pivoted to the burgeoning production of automotive components, thereby effecting a major restructuring of the company’s product portfolio. The company dispatched sales personnel to other regions to assess market conditions and develop new offerings tailored to customer demand. By traveling south and north—participating in the Guangzhou Trade Fair, visiting long‑time clients in Shanghai, and introducing innovative products—the firm captured new market share, won back loyal customers, and opened up fresh markets, gradually reviving its vitality and reversing years of persistent losses. Upholding the corporate motto “Hold your head high to act with integrity; keep your head down to work diligently,” and guided by the business philosophy of “creating value for customers, opportunities for employees, profits for the enterprise, and wealth for society,” the company pursued technological excellence, tightened quality management, and earned the trust of its clients. As a result, its competitiveness, internal cohesion, brand recognition, and reputation have continued to grow.

　　After more than a decade of hard work, General Manager Lu Jianxin and his employees have stood together through thick and thin, sharing both prosperity and adversity. The company has grown from a small factory on the brink of bankruptcy into a medium-sized enterprise with a workforce that has expanded twentyfold and an annual output value reaching RMB 600 million. In 2004, the company acquired 70 mu of prime land in the Xiangcheng Economic Development Zone—covering 46,000 square meters—and built a modern workshop spanning 10,000 square meters along with a 2,500-square-meter multi‑purpose office building, laying a solid foundation for the company’s long-term, sustainable development. As business needs evolved, in 2010 the company added two new factory buildings totaling 5,000 square meters and a five‑story comprehensive office tower. Today, Suzhou Shida Tongtai Automotive Components Co., Ltd. has become a medium-sized automotive supplier specializing in the production of complete automotive muffler assemblies and exhaust system components. In 2012, the company achieved an annual output value of RMB 650 million and was recognized for eight consecutive years as a “major taxpayer” and one of the “Top Ten Taxpaying Enterprises.” Its products are primarily supplied to Shanghai GM, Shanghai Volkswagen, FAW‑Volkswagen, Beijing Hyundai, Tianjin Toyota, Guangzhou Honda, Hainan Mazda, and other leading automakers. Among domestic manufacturers of automotive mufflers and exhaust systems, the company is one of the few that virtually covers all major passenger car segments, firmly establishing itself as an industry leader. Meanwhile, its products are exported to more than ten countries across four continents—including Southeast Asia, Europe, and the Americas—earning it an increasingly prominent position in the global automotive exhaust market.

　　During an interview at Suzhou Shida Tongtai Automotive Components Co., Ltd., the reporter engaged in repeated conversations with frontline employees, asking what the primary reasons were for the company’s dramatic transformation. The frontline workers generally reported—

　　“We have an outstanding corporate leader—General Manager Lu Jianxin! The company’s transformation and growth to where it stands today are largely thanks to General Manager Lu’s broad vision, far-sightedness, and keen insight.”

　　“General Manager Lu Jianxin has, for more than a decade, worked with unwavering dedication and utmost diligence, running the company as if it were his own home and treating his employees as family.”

　　“General Manager Lu possesses a strong sense of responsibility, a keen dedication to his career, and a vigorous spirit of innovation and enterprise. He exudes an indomitable drive that refuses to rest until his goals are achieved!”

　　“General Manager Lu is both bold and skilled in management. He has championed an incentive‑and‑elimination system that promotes the capable and demotes the mediocre, and he has boldly appointed a cohort of young managerial talent. Today, the average age of the company’s department‑level leadership is under 35, ensuring the enterprise is vibrant, its core team is energetic, and employees have clear prospects for growth.”

　　“General Manager Lu demonstrates a wholehearted dedication to serving the enterprise, possesses exceptional managerial expertise and outstanding leadership, and has earned the sincere admiration and unwavering support of all employees. Under his guidance, the company has fostered a positive corporate culture characterized by pioneering spirit, unity, and collective progress; employee morale remains stable, and the organization enjoys a harmonious, upward‑moving environment.”

　　In terms of corporate management strategy, target management and performance appraisal are seamlessly integrated, establishing a comprehensive supporting system that encompasses guiding principles and objectives, organizational structure, procedures and methodologies, management policies, and human resource development. Through 5S management, job roles are optimized, tasks are quantified, and business processes are standardized; self-assessment and peer review ensure clear delineation of positions, staffing levels, work quotas, and compensation, thereby strengthening end-to-end control. By implementing position‑based pay aligned with responsibilities, authority, and incentives, employee motivation, initiative, and creativity are fully stimulated. Moreover, the adoption of enterprise‑wide budgeting—clearly defining cost targets and standardizing performance evaluation—has reduced production costs and enhanced overall corporate profitability. Under the leadership of General Manager Lu Jianxin, Shida Company has maximized the potential of its people, finances, and resources, effectively integrating corporate assets and laying a solid foundation for maintaining its industry‑leading position and achieving sustained, healthy growth. As a result, the company’s management practices have progressively advanced along a path of standardization, institutionalization, and proceduralization.

　　In terms of corporate marketing strategy, Comrade Lu Jianxin has demonstrated keen insight and decisive judgment, consistently introducing innovative approaches and placing sales at the forefront of all efforts. As competition in the automotive market has grown increasingly fierce, coupled with the ripple effects stemming from the company’s expanding production scale, the existing production model has faced new challenges. Consequently, how to implement a “lean, pull‑based production system” has emerged as a pressing issue for management. To adapt to evolving market conditions, Comrade Lu Jianxin promptly adjusted the marketing strategy, tirelessly canvassing the market and conducting thorough research. With a fresh perspective, he formulated a marketing plan that aligns with the company’s development goals: “consolidate the domestic market while actively expanding into international markets.”

　　In fulfilling his corporate social responsibilities, Comrade Lu Jianxin has served for many years as a member of the CPPCC Committee of Xiangcheng District in Suzhou, demonstrating equal concern for major national and societal issues as well as everyday matters that affect people’s lives. He has also actively and enthusiastically engaged in public‑welfare initiatives. In 2007, he pledged a donation of RMB 1 million to charitable causes; following the Wenchuan earthquake on May 12, 2008, he once again organized company employees to make charitable contributions and personally led by example, donating RMB 100,000.

　　China Brand, September 2013 issue