FAW, Dongfeng, GAC, and Seres Pledge to Improve Supply Chain Liquidity
SHANGHAI, June 10 – Four of China’s leading automakers – FAW Group, Dongfeng Motor, GAC Group, and Seres – jointly announced today their commitment to standardize supplier payment terms within 60 days, marking a significant step toward stabilizing the automotive supply chain ecosystem.
Company-Specific Commitments
| Automaker | Key Measures | Implementation |
|---|---|---|
| FAW Group | Digital payment tracking systems | Immediate |
| Dongfeng Motor | Supply chain financing support | Q3 2025 |
| GAC Group | Streamlined approval processes | Rolling out |
| Seres | Cluster competitiveness programs | Ongoing |
Policy Context
The coordinated announcement responds to:
- MIIT and SASAC directives on supply chain stability
- State Council’s SME Payment Protection Regulations
- CAAM’s fair competition initiative
Operational Impact
Industry analysts highlight three major benefits:
- Improved cash flow for 5,000+ Tier 1-3 suppliers
- Reduced financing costs across the value chain
- Enhanced quality control through stable supplier relationships
Strategic Implications
“This represents a maturation of China’s automotive ecosystem,” noted CICC auto analyst Zhang Wei. “By standardizing payment terms, OEMs are acknowledging their role as supply chain anchors while addressing chronic liquidity pain points.”
The move comes as China’s auto sector faces both export opportunities and domestic overcapacity challenges. The 60-day benchmark aligns with global best practices, potentially improving international competitiveness for Chinese suppliers.
Implementation will be monitored through each company’s digital procurement platforms, with FAW already demonstrating real-time payment tracking capabilities on its cloud-based workflow system.
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