Mei Ri Shang Bao·2025-09-17 22:20Core Viewpoint - The China Automotive Industry Association (CAIA) has released a new initiative to standardize payment practices among automotive manufacturers, aiming to alleviate financial pressure on suppliers and promote healthy industry development [1][5]. Group 1: Payment Norms and Framework - The initiative establishes a structured framework for payment processes, focusing on four core areas: order confirmation, delivery acceptance, payment settlement, and contract duration [2]. - In the order confirmation phase, it mandates clear specifications regarding order dates, part specifications, quantities, and delivery timelines to prevent disputes [2]. - The delivery and acceptance regulations address industry pain points by requiring manufacturers to complete acceptance within three working days after receiving goods [2]. - Payment terms are defined to start from the date of delivery acceptance, with a maximum payment period of 60 calendar days, encouraging cash or bank acceptance bills for payments [2][3]. Group 2: Long-term Cooperation and Flexibility - The initiative promotes long-term stable partnerships, advocating for contract durations of at least one year to reduce signing costs and stabilize supplier expectations [3]. - It allows for flexible arrangements in special circumstances, such as consolidated billing for non-small enterprises with continuous supply, ensuring monthly reconciliation [3]. Group 3: Industry Response and Implementation - Data shows that the average payment cycle for major domestic automakers was 183 days in the first half of the year, an increase of about 7 days from the previous year, highlighting the need for reform [4]. - Following the initiative, several automakers, including FAW, GAC, and Xpeng, have already implemented the 60-day payment cycle [4][5]. - Major companies like SAIC and Changan have publicly committed to adhering to the new payment norms, with SAIC having already unified its payment terms to 60 days [5]. Group 4: Challenges Ahead - Despite the positive response, challenges remain in implementing the 60-day payment cycle, particularly in financial management and internal coordination among departments [6].