Zhong Guo Jing Ying Bao·2025-06-11 02:08Core Viewpoint - Major automotive companies, including Dongfeng Motor Group, have collectively announced a unified payment term of 60 days for suppliers, in response to the newly implemented regulations aimed at supporting small and medium-sized enterprises and promoting efficient capital flow within the industry [1][3][4]. Group 1: Industry Response - The announcement of a 60-day payment term has been adopted by several leading automotive companies, including China FAW, Seres Group, Geely, and Chery, indicating a growing trend among major players to enhance supply chain stability and efficiency [1][3]. - The revised regulations, effective from June 1, aim to ensure timely payments from large enterprises to small and medium-sized businesses, thereby optimizing the business environment [3][4]. Group 2: Payment Terms and Industry Standards - Historically, payment cycles in the automotive industry have been lengthy, with some companies experiencing payment terms as long as 300 days, significantly higher than international standards [5][6]. - For instance, domestic brands like Geely and Chery have average payment terms of 129.67 days and 142.88 days, respectively, compared to international companies like Volkswagen and Toyota, which have much shorter terms [5][6]. Group 3: Regulatory Framework - The new regulations encourage large enterprises to publicly commit to payment terms and methods for transactions with small and medium-sized enterprises, mandating payments within 60 days of delivery [4]. - Additionally, large enterprises are required to report overdue payments in their annual reports and integrate payment obligations into their risk management systems [4]. Group 4: Industry Collaboration and Future Outlook - Automotive companies are expressing a commitment to building a collaborative automotive value chain, aiming for high-quality development within the industry [8]. - Companies like Geely and Chery emphasize their roles in promoting fair competition and social responsibility, aligning with national policies to foster a healthier market environment [8].