Core Viewpoint - The article discusses the challenges faced by the automotive industry in implementing a 60-day payment term commitment made by 17 car manufacturers to alleviate pressure on suppliers, highlighting the need for systemic changes to ensure compliance and transparency [1][5][6]. Group 1: Payment Terms and Industry Practices - The average payment cycle for automotive parts suppliers is around 9 months, with some manufacturers publicly committing to 60-day payments but facing operational hurdles [2][3]. - Many car manufacturers delay payments until parts are installed and sold, creating a "pay after use" model that exacerbates cash flow issues for suppliers [2][3]. - The lack of standardized acceptance criteria and hidden clauses in contracts complicates the payment process, leading to further delays [2][4]. Group 2: Supplier Challenges and Market Dynamics - Suppliers often prioritize maintaining relationships with major car manufacturers over negotiating payment terms, even accepting price cuts of up to 20% [3][4]. - The competitive pressure within the supply chain leads to practices such as cash rebates to secure contracts, further straining supplier finances [3][4]. - The financial health of car manufacturers directly impacts payment speed, with good sales correlating to faster payments [4]. Group 3: Recommendations and Regulatory Actions - Industry experts suggest optimizing payment processes and reducing reliance on supply chain financing to alleviate supplier cash flow issues [5][6]. - There is a call for regulatory bodies to establish a breach compensation mechanism and to publicly disclose payment compliance data to enforce accountability [5][6]. - The Ministry of Industry and Information Technology plans to guide the development of standardized payment norms and contracts to reduce disputes and promote sustainable industry growth [6][7]. Group 4: Industry Outlook - Experts believe that addressing payment term issues, optimizing capacity, and regulating competition will help the automotive industry move towards a more efficient and resilient development phase [7].

Core Viewpoint - The commitment of car manufacturers to shorten payment terms is aimed at alleviating pressure on the supply chain and promoting a healthier industry ecosystem [3][10]. Group 1: Payment Term Commitments - 17 car manufacturers have made commitments to a 60-day payment term to ease supply chain pressures and counteract "involution" in the industry [3][10]. - Some manufacturers, like Chery, have successfully reduced their average payment period to 47 days, but many others still face challenges in implementing these commitments [1][3]. - The average payment cycle for many suppliers is around 9 months, with some manufacturers delaying payments until parts are installed and sold [3][4]. Group 2: Challenges in Payment Processes - The lack of standardized acceptance criteria and varying project review processes among manufacturers complicates timely payments [4][10]. - Some manufacturers extend payment periods through the use of commercial bills, which can lead to longer cash flow cycles for suppliers [4][10]. - Suppliers often lack bargaining power, leading to conflicts between maintaining customer relationships and securing timely payments [5][6]. Group 3: Industry Dynamics and Recommendations - The automotive industry is experiencing increased competition and price pressures, with many suppliers forced to accept lower prices and longer payment terms [6][7]. - Experts suggest that government intervention, such as linking subsidy policies to adherence to payment terms, could incentivize manufacturers to comply [12]. - Strengthening oversight of payment cycles and establishing a breach compensation mechanism are recommended to ensure manufacturers fulfill their commitments [10][12]. Group 4: Market Conditions and Future Outlook - The automotive industry is facing overcapacity issues, which contribute to the current competitive pressures [13]. - Experts believe that addressing payment term challenges, optimizing capacity, and regulating competition will help the industry transition to a more efficient and resilient phase [13].

Core Viewpoint - The Ministry of Industry and Information Technology has opened a platform for small and medium-sized enterprises (SMEs) to report issues regarding major automotive companies' adherence to payment terms, specifically focusing on the 60-day payment commitment [2][4]. Group 1: Issues Addressed by the Reporting Window - The reporting window primarily addresses four types of issues: 1. Major automotive companies failing to adhere to the 60-day payment commitment, with payment terms exceeding 60 days as stipulated in procurement contracts [3]. 2. Companies extending payment terms through unreasonable start dates, delaying the issuance of inspection or acceptance certificates without justification, or conditioning payments on third-party receipts [3]. 3. Companies coercing or indirectly forcing SMEs to accept non-cash payment methods such as commercial bills or electronic receivables [3]. 4. Other issues related to the inadequate implementation of the "Regulations on Guaranteeing Payment to SMEs" by major automotive companies [4]. Group 2: Industry Context - In the automotive industry, companies often leverage their strong bargaining power to extend payment terms, thereby occupying suppliers' funds [4]. - In mid-June, 17 major automotive companies, including FAW, Dongfeng, and GAC, made a public commitment to limit payment terms to no more than 60 days for suppliers [4]. - However, there are concerns within the industry regarding the actual implementation of these commitments, as many companies appear to be responding to regulatory pressure without clear execution plans [4].