Quanlian Automobile Dealers Chamber of Commerce: Calls on auto manufacturers to optimize rebate policies and shorten the rebate cashing period – Passionategeekz

Passionategeekz On June 23, the Quanlian Automobile Dealers Chamber of Commerce released the “Initiative on Calling on Automobile Manufacturers to Optimize Rebate Policy and Shorten Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Rebate Re

Recently, some automobile manufacturers have made a commitment to shorten the supply chain accounting period to 60 days. If this commitment can be fulfilled, it will greatly alleviate the financial pressure faced by supply chain companies and take a solid step to promote the automotive industry’s opposition to “intra-roll” competition. But at the same time, we must also pay attention to the issue of auto dealers, as an important part of the automobile industry chain, and auto dealers are also facing the issue of rebate cashing periods for automobile manufacturers. Under the current market conditions, whether the rebates promised by automobile manufacturers to dealers can be fulfilled in a timely manner is crucial to alleviating the financial pressure of dealers and improving the operating conditions of dealers. At the same time, compared with other supply chain companies, the rebates of dealers are not only a matter of cashing out periods, but also business policy issues such as whether the rebate policy is clear and whether the use of rebates is restricted. If only the corresponding cashing out periods are clarified without adjusting unreasonable business policies, it is difficult to fundamentally solve the problem.

The Chamber of Commerce recently conducted a special survey on the rebate issues of 42 auto brands promised dealers. Judging from the research situation, there are mainly three problems:

• First, the rebate composition is complex and there is a vague space. Manufacturers give distributors a variety of rebates and complex compositions, which can be roughly divided into fixed rebates and non-fixed rebates. Fixed rebates such as monthly, quarterly, semi-annual, annual rebates, etc., non-fixed rebates such as phased promotional rebates, special subsidies (manufacturers give dealers various nominal subsidies to make up for the losses caused by distributors due to price inversions, etc.). Overall, fixed rebates are relatively clear, and there is a large vague space for non-fixed rebates, and some rebate dealers cannot calculate the details at all; there is a great uncertainty about whether to give or not, when to give, in what form, and how much to give.

• Second, there is a big difference between the brands that cash out during the account period. In terms of fixed rebates, 17 brands have a cashing period of no more than 30 days, 9 brands have a cashing period of no more than 60 days, 12 brands have a cashing period of no more than 90 days, and 4 brands have a cashing period of no more than 180 days. In terms of non-fixed rebates, 18 brands have a cash rebate period of no more than 30 days, 9 brands have a cash rebate period of no more than 60 days, 7 brands have a cash rebate period of no more than 90 days, 2 brands have a cash rebate period of 180 days, and 6 brands have no non-fixed rebate due to various reasons.

• Third, the cashing of rebates and how to use them are mostly limited. In terms of cashing requirements, the cashing of rebates for all brands is directly linked to the assessment of sales tasks or the number of car pickups, etc. If the sales tasks are not completed or the number of car pickups is not met, it will directly affect whether the rebates can be cashed and how much they can be cashed. In terms of cash and rebate use, there are 9 brands that can be used in cash and can be used by dealers and dealers at their own discretion, 8 brands that can be used in cash and system accounts to dealers and dealers at their own discretion, and 25 brands that can only be used to purchase cars and accessories by system accounts. Some brands also have clear restrictions on the proportion of rebates used by dealers when purchasing cars.

Auto dealers are a typical capital-intensive industry and require a large amount of funds to buy cars from manufacturers every month. Judging from the Chamber of Commerce’s research data,Currently, the main sales models are about 80% of the price inverted, and the inverted amount generally exceeds 20%.. This means that if the dealer fails to get the rebate in time, he will pay a lot of additional funds. Manufacturers and dealers have a cooperative relationship that is shared by weal and woe. We should fully recognize the direct impact of whether rebates can be cashed in a timely manner on dealers, come up with practical and feasible solutions to completely solve the problems of unclear rebate policies, rebate cash payment periods, and restricted rebate use that have long plagued dealers. Only in this way can we build a cooperative ecosystem of mutual trust and win-win between manufacturers and dealers, and solve the “intra-roll” competition problems in the automobile industry more deeply. To this end, the Chamber of Commerce made the following appeals to various automobile manufacturers:

• First, set up a clear and clear rebate policy. Simplify the rebate settings, clarify the rebate standards, and eliminate fuzzy rebates. In particular, manufacturers give dealers various nominal non-fixed rebates to dealers in order to make up for the losses caused by dealers due to price inversions and other reasons, they should enable dealers to have expectations and relatively clear calculation standards based on objective market conditions.

• The second is to shorten the rebate cashing period. Among the car brands surveyed, 18 of the rebate cashing periods have reached less than 30 days, fully reflecting the social responsibility and brand image of these brands. Given the importance of rebates to dealers, all brands are called on to adjust the rebate cashing period to no more than 30 days.

• Third, no longer have too many restrictions on rebate cashing and rebate use. Nine of the car brands surveyed returned rebates directly to dealers in cash, and dealers can use them at their discretion, calling on all brands to return rebates to dealers in cash, and ensuring that dealers can use them at their discretion. At the same time, do not set too strict assessment conditions for rebate cash.

Achieve healthy and high-quality development of the automotive industry is everyone’s common pursuit. Establishing a fair and win-win market competition order requires everyone’s joint efforts. Opposing “involved” competition is becoming increasingly a consensus in the industry. We firmly believe that as long as manufacturers go in both directions, they will be able to establish a mutually trusted and win-win cooperation ecosystem between automobile manufacturers and dealers, and promote higher-quality development of China’s automobile industry.

Survey the list of automobile brands:BMW, FAW Audi, SAIC Audi, Mercedes-Benz, Hongqi, Lexus, Cadillac, Volvo, Porsche, Lincoln, Jaguar Land Rover, BYD, Equation Leopard, Tengshi, Geely Auto, Changan Automobile, Changan Ford, Zekrch, Chery Automobile, Haval, Wenjie, Jetour, GAC Aion, GAC Trumpchi, Zero-Road, Lynkor, Geely Galaxy, Deep Blue, Tank, Xiaopeng, SAIC Roewe, Xiaomi, Zhiji, Dongfeng Nissan, FAW-Volkswagen, SAIC Volkswagen, FAW Toyota, GAC Toyota, Dongfeng Honda, GAC Honda, Buick, Beijing Hyundai.

Passionategeekz inquired about public information and learned that the Quanlian Automobile Dealer Chamber of Commerce (hereinafter referred to as “Quanlian Automobile CADCC”) was established in Beijing on December 3, 2006. It is an industry chamber of commerce directly under the All-China Federation of Industry and Commerce. It is a national, industry-oriented and non-profit social group with automobile dealership service enterprises and related enterprises, groups and individuals in this industry field as the main body.

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