SAIC MOTOR(SH:600104) Zhong Guo Ji Jin Bao·2025-06-12 05:35Core Viewpoint - A total of 17 major automotive companies in China have committed to reducing the payment period to suppliers to no more than 60 days, which is expected to enhance the efficiency of capital turnover in the automotive supply chain [1][3]. Group 1: Commitment and Industry Response - The commitment from the automotive companies aims to create a collaborative and mutually beneficial ecosystem between vehicle manufacturers and parts suppliers, promoting sustainable industry development [1]. - The Ministry of Industry and Information Technology has emphasized the importance of this initiative for the health of the automotive industry [1]. - Many domestic automotive companies currently have payment periods exceeding 120 days, with some exceeding 200 days, while Tesla claims a payment period of around 90 days [1]. Group 2: Execution Challenges - There are concerns regarding the actual implementation of the commitment, as many companies are responding to regulatory calls without clear execution plans [3][10]. - The starting point for determining the payment period remains ambiguous, leading to skepticism about whether the commitment will effectively reduce the financial burden on suppliers [1][9]. - A senior accountant from a leading firm noted that companies could still manipulate the payment period by selecting different starting points for the calculation [9]. Group 3: Payment Methods and Financial Implications - The use of commercial acceptance bills for payments is common in the automotive industry, but this method can create hidden payment delays for suppliers [2][6]. - Only SAIC Motor and BAIC Group have explicitly stated they will abandon the use of commercial acceptance bills, which can increase financial pressure on suppliers [4]. - The financial risks associated with commercial acceptance bills are higher than those of bank acceptance bills, leading to increased costs for suppliers who need to discount these bills for cash [7][8]. Group 4: Industry Dynamics and Supplier Relations - The payment period is defined as the time from when suppliers deliver goods to when they receive payment, and automotive companies often extend this period to utilize supplier funds [9]. - The commitment to a unified 60-day payment period is contingent on when the supplier's invoice is received, not when the goods are delivered, allowing for potential manipulation of the timeline [9][10]. - Companies may delay invoice issuance by negotiating prices post-delivery, which can further complicate the payment process for suppliers [10].