Core Insights - The automotive industry is currently facing two significant developments: the introduction of a payment guideline by the China Automotive Industry Association and a joint initiative by six government departments to address online misconduct in the sector [1][2]. Group 1: Payment Guidelines - The China Automotive Industry Association has launched an initiative to ensure that payment terms do not exceed 60 days, responding to a government regulation aimed at protecting small and medium-sized enterprises [1][2]. - A survey revealed discrepancies in the execution of payment processes between automakers and suppliers, prompting the release of this initiative to clarify and standardize these processes [2][3]. - The initiative aims to enhance management capabilities and streamline payment processes, thereby facilitating the commitment to the 60-day payment term [3][4]. Group 2: Industry Conduct - The joint action by the Ministry of Industry and Information Technology and other departments targets illegal profit-making, exaggerated claims, and malicious attacks within the automotive industry [1]. - The behavior of executives publicly disparaging competitors can harm the brand image and long-term market position of their companies, despite any short-term gains [5]. - The industry is encouraged to focus on product quality, innovation, and customer satisfaction rather than engaging in negative competitive tactics [5].

Core Viewpoint - The automotive industry is witnessing two significant developments: the introduction of a payment guideline by the China Automotive Industry Association and a joint initiative by six government departments to address online misconduct in the sector. These efforts aim to create a healthier internal ecosystem and a clearer external environment for the industry. Group 1: Payment Guidelines - The China Automotive Industry Association has launched an initiative to ensure that payment terms do not exceed 60 days, responding to a government regulation aimed at protecting small and medium-sized enterprises [1][2] - The initiative was prompted by findings from surveys and discussions with key automotive companies and their supply chains, highlighting discrepancies in processes that could delay the implementation of the 60-day payment commitment [2][3] - The initiative aims to enhance management capabilities and streamline processes for both automakers and parts suppliers, ensuring the 60-day payment term is effectively realized [3] Group 2: Coordination and Timeframes - The 60-day payment term is designed to foster collaboration between automakers and suppliers, establishing a win-win situation within the industry [4] - Confirmation of delivery should occur within three working days, and the 60-day payment period starts from the date of delivery confirmation, including holidays, with provisions for delays due to holidays [4] - The shift from payment terms exceeding 100 days to 60 days places significant pressure on larger companies while providing crucial cash flow benefits for smaller enterprises [4] Group 3: Industry Conduct and Competition - The behavior of executives in public forums can negatively impact a company's brand image, even if it appears to yield short-term benefits [5] - Market competition should rely on product quality, innovation, and customer satisfaction rather than negative tactics against competitors, as such actions can backfire and harm the company in the long run [6]

中国汽车工业协会副秘书长 陈旭：今年6月1日国务院发布了保障中小企业款项支付的条例之后，条例也明确规定，大型的企业要向中小企业的采购的货物 工程和服务的时候，要及时支付账款，不超过60天。为了积极响应这个政策，6月10日到11日，17家重点的企业都做出了承诺，在社会中起到了非常积极的 反响，中国汽车工业协会也一直在关注着近几个月的60天账期的执行情况。 通过我们对重点企业和供应链企业的调研、访谈和沟通，我们发现整车企业和供应链之间针对一些流程规范，包括在执行过程中还有很多分歧。所以今天我 们就发布了这样一个倡议，来把这些有分歧点的一些内容，经过双方确认之后落实下来，并且倡导大家来执行。 同时，这也是我们对17家汽车行业重点企业的执行情况，也是一个积极的回应。 央视网消息：近日，汽车行业的两大重要动态引发广泛关注。一方面，中国汽车工业协会发布《汽车整车企业供应商账款支付规范倡议》，精准聚焦"支付 账期不超过60天"落地实施过程中的堵点难点问题；另一方面，工信部等六部门联合启动针对汽车行业网络乱象的专项整治行动，集中整治非法牟利、夸大 和虚假宣传、恶意诋毁攻击等问题。 两项工作同步推进，一个着眼于产业链内部的健康 ...

Core Viewpoint - On September 15, 17 automotive companies, including BYD and Xiaomi Auto, publicly committed to a supplier payment term not exceeding 60 days, with detailed guidelines on the payment process, which has garnered significant attention [1][2]. Group 1: Payment Terms and Conditions - The new initiative specifies that suppliers should expect acceptance of goods to be completed within three working days after delivery [1]. - The 60-day payment term starts from the date the goods are delivered and accepted, with a maximum duration of 60 calendar days [1]. - For non-small and medium-sized enterprises with continuous supply (more than twice a month), a consolidated reconciliation method can be used, with the payment term starting from the reconciliation date [1]. Group 2: Payment Methods and Supplier Relationships - To avoid delays in payment due to price disagreements, the initiative suggests an initial payment based on the last supply contract price (at least 80%) or a predetermined development price (at least 50%) [2]. - The initiative encourages cash or bank acceptance bills as payment methods, particularly for small and medium-sized enterprises [2]. - The China Automotive Industry Association advocates for long-term stable relationships between manufacturers and suppliers, with contracts having a minimum validity of one year [2]. Group 3: Market Reaction - Following the announcement of the initiative, the automotive parts sector saw a positive market response, with several stocks, including Langbo Technology and Tianlong Shares, hitting the daily limit, while others like CATL and Meichen Technology rose nearly 10% [2].

Core Viewpoint - The China Automobile Manufacturers Association (CAAM) has launched an initiative to standardize payment terms between automobile manufacturers and suppliers, establishing a maximum payment period of 60 days from the date of delivery and acceptance of goods [1][3]. Group 1: Payment Terms and Procedures - The initiative specifies that the payment period starts from the date the supplier delivers goods and they are accepted by the manufacturer, with a maximum of 60 calendar days [1][2]. - Manufacturers are encouraged to complete the acceptance of goods within three working days and issue an acceptance certificate upon successful verification [2]. - For small and medium-sized suppliers, the initiative advocates for payments to be made entirely in cash or through bank acceptance bills [2]. Group 2: Industry Support and Compliance - The initiative aims to support the implementation of the "Regulations on Payment for Small and Medium Enterprises" and to promote high-quality practices among key manufacturers regarding payment commitments [3][4]. - The Ministry of Industry and Information Technology (MIIT) supports the initiative, emphasizing its importance in guiding industry enterprises to fulfill payment commitments and promoting standardized development in the automotive sector [4][5]. Group 3: Challenges and Recommendations - A previous survey indicated that there are four main issues with the current implementation of the 60-day payment term, including ambiguity regarding the starting point for the payment period [3]. - Suppliers have expressed concerns about the continued use of commercial acceptance bills, which complicates payment processes [3]. - The MIIT highlighted that delayed payments increase operational pressure on suppliers, negatively impacting their ability to invest in technological innovation and the overall supply chain resilience [5].

Core Viewpoint - The automotive industry is experiencing a shift towards a standardized payment term of 60 days for suppliers, initiated by 17 major car manufacturers, although challenges remain in fully implementing this commitment [1][6][21]. Group 1: Payment Terms and Supplier Experience - Suppliers report some improvement in payment cycles, but the full realization of the "60-day payment term" is still problematic due to uncertainties in project completion and acceptance processes [2][9][10]. - A survey indicates that 50% of suppliers are concerned about the sustainability of the 60-day payment term, highlighting a gap between policy and execution [11][15]. - The payment speed has shown positive changes, with 83.33% of suppliers noting slight improvements, and 33.33% reporting significant reductions in financial pressure [13]. Group 2: Regulatory and Industry Response - The implementation of the "60-day payment term" aligns with the "Regulations on Ensuring Payment to Small and Medium Enterprises," which took effect on June 1 [6][21]. - The Ministry of Industry and Information Technology (MIIT) is actively promoting compliance with the 60-day payment commitment among major automotive companies, with some firms already achieving significant reductions in payment cycles [22][23]. - Companies like Chery and China FAW have adopted measures to streamline payment processes, with Chery reducing average payment terms to 47 days through various strategies [23]. Group 3: Challenges and Concerns - Despite improvements, suppliers express concerns about potential delays in payment due to ambiguous contract terms and varying interpretations of the payment start date [18][25]. - The use of commercial acceptance bills has not been entirely eliminated, with 66.67% of suppliers indicating that while usage has decreased, it still exists [14]. - Industry experts warn that the shift to shorter payment cycles may pressure manufacturers' cash flow, necessitating better financial management to avoid passing costs back to suppliers [24][27].

Core Viewpoint - The implementation of the revised "Regulations on Payment of Small and Medium-sized Enterprises" has revealed that only a few of the 17 major automotive companies have fulfilled their commitment to pay suppliers within 60 days, highlighting challenges in cash flow management and organizational capabilities in the industry [1][2][3]. Group 1: Company Commitments - 17 automotive companies, including major players like China FAW, GAC Group, and BYD, initially pledged to adhere to a 60-day payment term for suppliers [1]. - As of now, only three companies—China FAW, GAC, and Seres—have successfully implemented the 60-day payment term [2]. - Companies like Xpeng have signed supplementary agreements with some suppliers to formalize the 60-day payment commitment, although some suppliers are still in the process of signing [2][3]. Group 2: Industry Challenges - The average accounts payable turnover days for domestic listed automotive companies reached 182 days in 2024, indicating a long-standing issue of delayed payments in the industry [3]. - Reducing the payment cycle from over 100 days to 60 days would require automotive companies to release over 1 trillion yuan in cash flow, posing significant pressure on an industry already facing declining profit margins [3]. - The transition to a 60-day payment term involves complex organizational management challenges, including procurement, contract review, financial payments, and tax documentation [3]. Group 3: Regulatory Environment - The new regulations prohibit companies from forcing small and medium-sized enterprises to accept non-cash payment methods, which could extend payment periods [3]. - China FAW has committed to 100% cash payments to recognized small and medium-sized suppliers starting from June [3]. - Regulatory bodies are encouraged to enhance oversight to ensure compliance with the 60-day payment commitment and to address issues of hidden payment delays [4].

从6月中旬至今，汽车行业"支付账期不超过60天"（下称"60天账期"）第一次满期。近日，就"兑现情 况"，一汽、广汽、赛力斯对外披露最新进展。 广汽：可视化管控 入库为起算时间 记者获悉，广汽已经构建起覆盖"订单下发—验收入库—对账结算—货款支付"全流程的管控体系。数字 化系统支持可视化管控，供应商与广汽均可实时查看各环节进度。支付期限以货物入库为起算时间，入 库即完成验收，不存在模糊时间节点。支付方面，广汽以"现金支付"为主，占比约95%，其余5%采用 由广汽集团贴息的银行承兑方式。 一汽方面，自今年6月起，对经认定的中小企业供应商，全部执行100%现金支付，改变此前"现金+银行 承兑汇票"的混合支付模式。赛力斯则首创"厂中厂"模式，从合作起点就划定了付款时间的刚性底线。 "60天账期"兑现，加上以旧换新补贴推动，对产销提升也带来立竿见影的效果。今年7月汽车产销分别 完成259.1万辆和259.3万辆，同比分别增长13.3%和14.7%。 供应链是汽车产业的"筋骨血脉"，是产业转型升级的关键一环。中国汽车工业协会专务副秘书长许海东 表示，在调整账期的过程中，车企的资金需要筹备，"相关的流程，包括验收、上线、 ...

Core Viewpoint - The article discusses the implementation of a 60-day payment term for suppliers by major automotive companies in China, highlighting both the progress made and the challenges faced in adhering to this commitment [3][5]. Group 1: Supplier Payment Practices - The Ministry of Industry and Information Technology (MIIT) reported that companies like FAW, GAC, and Seres have successfully implemented the 60-day payment term through process optimization [5][7]. - However, the execution of this commitment varies across the industry, with some suppliers reporting that the actual practices have not changed despite official notifications [7][9]. - Many suppliers express skepticism about the real impact of the 60-day term, citing operational challenges and a lack of proactive communication from automotive companies [8][9]. Group 2: Industry Payment Dynamics - The average accounts payable turnover days for listed automotive companies is projected to be 182 days in 2024, indicating that suppliers often wait six months to a year for payment [11][12]. - The traditional payment model involving long payment terms and commercial acceptance bills has become a norm, further extending the actual payment cycle for suppliers [11][12]. - The financial strain on automotive companies is evident, with major firms like BYD and SAIC having significant accounts payable, which constitutes over 55% of their current liabilities [12][13]. Group 3: Challenges to Implementing 60-Day Terms - The successful implementation of the 60-day payment term hinges on balancing the cash flow needs of automotive companies with the operational needs of suppliers [15][16]. - Structural imbalances in the supply chain, where larger companies dominate, create pressure on smaller suppliers to accept unfavorable terms [16][17]. - The automotive industry is facing declining profit margins, with the average profit rate dropping from 7.3% in 2018 to 4.3% in 2024, complicating the financial landscape for companies to adhere to the new payment terms [16][17].

Group 1 - The Ministry of Industry and Information Technology has opened a complaint platform for small and medium-sized enterprises regarding major automotive companies' adherence to payment cycles, indicating a focus on the actual implementation of commitments rather than just verbal assurances [1] - The collective commitment of major automotive companies to a "60-day payment cycle" is seen as a potential positive shift for the industry, promoting a transition from price competition to value competition, which could enhance supplier cash flow and investment in innovation [1] - However, the shortened payment terms may increase financial pressure on dealers, who must pay for vehicles more quickly, potentially leading to cash flow issues if sales do not improve significantly [1] Group 2 - Many small and medium-sized automotive dealers are facing severe cash flow challenges due to delayed payments, which is exacerbated by the need to prepay for vehicles before selling them to consumers [2] - The ongoing price competition in the automotive market has led to significant financial strain on dealers, with many experiencing losses and a sharp increase in the number of dealers exiting the market [2] - The decline in service quality due to cost-cutting measures by dealers could negatively impact consumer trust and ultimately harm vehicle sales, creating a detrimental cycle for the industry [2] Group 3 - The collective commitment from major automotive companies primarily addresses suppliers, while the struggles of dealers have not received adequate attention, prompting local automotive associations to call for more equitable business practices [3] - Automotive companies are encouraged to implement measures to alleviate dealer pressure, such as timely rebate settlements and extending interest-free inventory financing periods to support dealer operations [3] - A collaborative approach between automotive companies and dealers is essential for fostering a sustainable and high-quality development within the automotive industry [3]