And you need shorter springs and shocks so that it can be aligned properly right?
They do make lowering springs for the 124 chassis. I am not sure if they would be too much for your application.
1994 Mercedes 300E H&R Sport Lowering Springs Benz W124 29569-2
You can further tune the ride height by using a different thickness spring pad. Mercedes made these in various heights. The height is indicated by the number of nubs on the pad. 1 is lowest 4 is highest.
Bilstein also makes sport struts that might be useful in your application.
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