Three Automakers Praised by Authorities for Fully Implementing 60-Day Payment Terms

Recently, the official WeChat account of the Ministry of Industry and Information Technology (MIIT), "MIIT Micro Report," published an article titled "How is the Progress of Automakers' Commitment to 60-Day Payment Terms?" CCTV News also conducted related follow-up reports. What is the progress of this nationwide concern over payment terms? After conducting visits and investigations, the authorities publicly commended FAW Group, GAC Group, and Seres Group for their implementation of the commitment to payment terms with suppliers.

Xu Haidong, Executive Deputy Secretary General of the China Association of Automobile Manufacturers, stated: At present, major central state-owned enterprises such as FAW, Dongfeng, and Changan; major state-owned enterprises such as GAC, SAIC, and BAIC; private enterprises like Geely and Great Wall; as well as new forces such as Seres, Li Auto, and XPeng, are all actively responding. The China Association of Automobile Manufacturers has also conducted some relevant statistics. It can be said that these large and key automobile enterprises are already taking action. In the process of adjusting payment terms, automakers need to prepare funds, and related procedures—including acceptance, go-live, payment, and relevant supply and sales contracts—all need to be adjusted. A large number of enterprises are first implementing a 60-day payment period for new orders, and some old orders will be gradually resolved, which is understandable.

In June this year, in response to the implementation of the revised "Regulations on Guaranteeing Payments to Small and Medium-sized Enterprises" by the State Council, 17 major automobile companies nationwide have successively made a public commitment that "the payment period for suppliers will not exceed 60 days." On July 9, the Ministry of Industry and Information Technology further opened an "Online Issue (Suggestion) Reporting Window for Major Automobile Companies to Fulfill Payment Period Commitments" to better promote the implementation of these commitments by major automobile companies.

As time goes on, more automakers will face the test of a 60-day payment period. Which companies will be able to fulfill their commitments as promised, and which will experience payment difficulties—the answer will soon be revealed.