Automakers adopt direct supply model to reduce costs

As car prices continue to fall, automakers are turning to a direct supply model to reduce costs. Agent Wang Lin revealed that domestic OEMs have been strongly integrating the supply chain since 2023, directly canceling agents, and signing direct supply and consignment agreements with the original manufacturers to "avoid middlemen making a profit" and achieve the purpose of reducing costs. Suppliers have basically no bargaining power under this model, and many suppliers have to sign harsh contracts.