Core Viewpoint - The China Association of Automobile Manufacturers (CAAM) has launched the "Payment Norms Initiative for Automotive OEMs and Suppliers" to promote timely payments to suppliers, particularly small and medium-sized enterprises (SMEs), and to foster a collaborative ecosystem in the automotive industry [2] Group 1: Initiative Overview - The initiative aims to implement the "Regulations on Ensuring Payment to SMEs" and support key automotive enterprises in fulfilling their payment commitments to suppliers [2] - 17 major automotive companies have publicly committed to a payment period not exceeding 60 days [2] Group 2: Key Aspects of the Initiative - **Order Confirmation**: OEMs and suppliers must confirm order details including delivery dates, part specifications, and quantities through purchase orders, with any changes requiring mutual agreement [3] - **Delivery and Acceptance**: Suppliers must deliver goods as per the purchase order and complete factory inspections before delivery. OEMs are required to complete acceptance within three working days [4] - **Payment and Settlement**: Payment terms start from the date of delivery acceptance, with a maximum of 60 calendar days. For continuous supply, payment can be consolidated after mutual agreement [5] - **Contract Duration**: The initiative encourages long-term partnerships, with contracts having a minimum validity of one year [7]

Core Viewpoint - The article emphasizes the importance of establishing a standardized payment process for suppliers in the automotive industry, aiming to support small and medium-sized enterprises (SMEs) and promote a collaborative ecosystem between vehicle manufacturers and component suppliers [2][9][10]. Group 1: Overall Principles - The initiative adheres to principles of equality, voluntariness, fairness, and integrity, ensuring compliance with national laws and regulations, particularly the "Regulations on Ensuring Payment to Small and Medium-sized Enterprises" [2][10]. - It aims to prevent large enterprises from exploiting their advantageous positions to harm suppliers' interests, fostering a win-win development ecosystem in the automotive industry [2][10]. Group 2: Key Processes Order Confirmation - Both parties (vehicle manufacturers and suppliers) must confirm order details such as order date, component specifications, quantity, and delivery schedule through a purchase order [3]. - Any changes or cancellations to the confirmed orders must be mutually agreed upon [3]. Delivery and Acceptance - Suppliers are required to deliver goods according to the purchase order and delivery notice, ensuring that products pass factory inspections before delivery [4]. - Vehicle manufacturers must complete acceptance within three working days of receiving the goods, issuing an acceptance certificate if the goods meet the requirements [4]. Payment and Settlement - Payment terms start from the date of delivery and acceptance, with a maximum payment period of 60 calendar days [5]. - For continuous supply (more than twice a month), parties may agree to a consolidated settlement, with the payment period starting from the reconciliation date [5]. - In cases where pricing is not agreed upon, manufacturers should make an initial payment based on the last contract price or a certain percentage of the development price [5][11]. - Suppliers must provide compliant and auditable invoices promptly, and manufacturers retain the right to delay payment if invoices are not provided on time [6]. Contract Duration - The initiative encourages establishing long-term cooperative relationships, with contracts having a minimum validity of one year [7][11]. Group 3: Background and Implementation - The automotive market has faced intensified competition, leading to issues such as prolonged payment cycles and reduced procurement prices, adversely affecting the supply chain [9]. - In response, 17 key automotive enterprises have publicly committed to a payment period not exceeding 60 days, which has received positive feedback [9]. - The initiative is a result of extensive consultations and aims to standardize payment processes across the industry, ensuring better support for vehicle manufacturers in fulfilling their payment commitments [9][12].