7 OEMs promised to shorten the rebate period for dealers to 60 days BMW and Audi on the list – Passionategeekz –

[CNMO Technology News]Starting from June 10, 17 car companies including Dongfeng, GAC, BYD, and Chery have successively declared that they would unify the payment period to suppliers to within 60 days. Nowadays, the downstream channel end of automobiles is also beginning to change.

On June 13, according to the report of late Auto, it exclusively learned from Song Tao, assistant president of the China Automobile Dealers Association that recently, no less than 7 host manufacturers have promised to pay sales rewards and rebates to dealers within 60 days. The currently promised manufacturers include BMW, BAIC New Energy, SAIC General Motors, GAC New Energy, GAC Toyota, FAW Audi and Yueda Kia.

According to the media, GAC Toyota’s rebate to dealers will be converted into monthly settlements, that is, vehicles sold in that month will be rebated in the next month and will be paid in cash. In specific operations, 80% to 90% of the rebates are paid in the next month (within 30 days), and 10% to 20% of the rebates are paid in 2 months.

A dealer of a traditional luxury brand said that the brand he operates is to pay a 60% rebate after three months of new car sales, and the remaining 40% are paid in the middle of the following year. According to him, most of the current rebate is not cash, but red invoices, which are used to offset the car when dealers continue to purchase cars.

Song Tao said: “The rebate period problem has always plagued the dealer group. The government, industry associations and enterprises continue to work together to shorten the rebate period, which will alleviate the operating pressure of the current dealer group.”

According to statistics from the China Automobile Dealers Association, in 2024, about 85% of car dealers have price inversions to varying degrees, and more than 60% of dealers have price inversions of more than 15%. Under operating pressure, more than 4,000 dealers retired from the network last year, doubled compared with previous years.

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