3 6 Ke·2025-06-11 02:02Core Viewpoint - The automotive industry is responding to a national call to standardize payment terms to suppliers within 60 days, aiming to alleviate cash flow issues and promote high-quality development in the sector [1][2][4]. Group 1: Industry Response - GAC Group was the first to announce the commitment to a 60-day payment term for suppliers, followed by major state-owned enterprises like FAW and Dongfeng, and other leading companies such as Geely and Changan [1][2]. - As of the latest updates, a total of eight automotive companies, including BYD and Chery, have pledged to adhere to the 60-day payment term, indicating a potential trend for more companies to follow suit under public pressure [4][11]. Group 2: Historical Context and Current Issues - Historically, the average payment cycle for domestic automotive companies has increased from approximately 45 days a decade ago to over 170 days currently, with some companies exceeding 240 days [5][6]. - In contrast, international automotive giants like Toyota and Ford maintain much shorter payment cycles, averaging around 54 to 64 days [5][6]. Group 3: Implications of the New Policy - The introduction of a standardized 60-day payment term is seen as a revolutionary change for the automotive supply chain, potentially improving cash flow and reducing financial strain on suppliers [5][11]. - The policy aims to shift the automotive industry from a "dominance of manufacturers" model to a more equitable collaboration between manufacturers and suppliers, fostering a healthier business environment [15]. Group 4: Regulatory Framework - The revised "Regulations on Payment to Small and Medium Enterprises" effective from June 1, 2023, addresses long payment cycles and aims to enhance regulatory oversight, ensuring timely payments [10][15]. - The regulations include provisions to prohibit coercing small businesses into accepting non-cash payment methods, thereby preventing the circumvention of the 60-day payment rule [15]. Group 5: Market Reactions and Concerns - While the announcement has been met with optimism from industry stakeholders, there are concerns regarding the actual implementation and potential loopholes that could allow companies to extend payment periods through various means [13][15]. - The effectiveness of the new policy will depend on the commitment of automotive companies to adhere to the regulations and the enforcement of penalties for non-compliance [15].