Chinese auto brands face fierce competition, suppliers face tough times

It is not just the price cuts that lead to thinning profits. The large investment scale and long payment terms of parts suppliers generally require companies to borrow money to operate, resulting in high debt ratios and capital costs, making the cash flow security of enterprises very fragile. "Sometimes I miss the old days." A person in charge of an automobile interior decoration factory lamented to Caijing that when he supplied goods to joint ventures, everything was done according to the rules. The other party had high requirements for products, but as long as the products met the standards, he could get the money within the normal payment period. Now, when supplying goods to independent brands, the payment period is long, the standards are high, and the treatment is difficult to be respected. Often, they are called and dismissed day and night. The person in charge is very entangled: he hopes to see cars become more and more cost-effective and more and more cars are bought; he also hopes to see independent brand cars become better and better and sold to more foreigners; he also hopes to get the benefits he deserves.