7 days ago
China Parts Suppliers Are Wary of Carmakers' Bill Payment Pledge
Chinese carmakers' pledge to make timely bill payments — an effort to appease officials' growing scrutiny of a long-running price war — has left many suppliers skeptical about how readily they'll follow through on their promises.
After meeting with regulators in early June about the need for better self-regulation, the industry's biggest names including BYD Co. and Zhejiang Geely Holding Group Co. said they'll pay suppliers within 60 days. While that represents a shift toward global industry norms, it's a major change for some carmakers, including BYD, whose payment cycles can stretch to hundreds of days.
