Core Viewpoint - The automotive industry is facing significant challenges, particularly for dealers, who are experiencing financial strain despite increased vehicle sales. The commitment from GAC Group to ensure timely rebate payments to dealers is seen as a positive step towards alleviating some of these pressures and promoting high-quality development in the industry [1][6][7]. Group 1: Dealer Challenges - A survey by the China Automobile Dealers Association revealed that 84.4% of dealers are experiencing price losses, with 60.4% facing losses exceeding 15% [6]. - The phenomenon of "selling more but losing more" has become common, driven by price wars and the rapid transition to new energy vehicles, leading to increased liquidity risks for dealers [7][11]. - The high operational costs and declining quality of sales leads have exacerbated the difficulties faced by dealers [6]. Group 2: Industry Response - In response to the challenges, several major automotive companies, including GAC Group, have committed to standardizing supplier payment terms to a maximum of 60 days, aiming to improve cash flow within the supply chain [4][9]. - The Ministry of Industry and Information Technology emphasized that the 60-day payment term is a crucial step towards building a collaborative and sustainable development ecosystem in the automotive industry [10]. - The China Automobile Industry Association has called for fair competition and adherence to legal standards to combat the negative effects of price wars on industry profitability and consumer rights [12][13]. Group 3: Future Outlook - The commitment from GAC Group to complete dealer rebate payments within two months is viewed as a significant positive move that could help mitigate financial pressures on dealers and support the overall health of the automotive industry [7][8]. - The industry is urged to shift production strategies to align with market demand, which could help stabilize dealer operations and improve profitability [7].
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