Lates News

The National Federation of Automobile Dealers Associations issued a call to automobile manufacturers to optimize rebate policies and shorten the rebate redemption period. Automobile dealers are a typical capital-intensive industry that needs to use a large amount of funds to purchase vehicles in full from manufacturers every month. According to data from the Association's survey, currently around 80% of the top-selling models have price inversion issues, with the inversion amount generally exceeding 20%. This means that dealers will have to advance a large amount of funds if they cannot receive rebates in a timely manner. Manufacturers and dealers have a cooperative relationship where they should fully recognize the direct impact on dealers if rebates are not redeemed in a timely manner. Practical and feasible solutions should be put forward to completely solve the long-standing issues of unclear rebate policies, lengthy rebate redemption periods, and restrictions on rebate use. Only in this way can a cooperative ecosystem of mutual trust and win-win cooperation between manufacturers and dealers be established to address the "tendency to compete in an increasingly intense manner" in the automotive industry. Therefore, the Association calls on all automobile manufacturers to: First, establish clear and concise rebate policies. Simplify rebate processes, clarify rebate standards, and eliminate vague rebates. In particular, the various kinds of non-fixed rebates that manufacturers provide to dealers to compensate for losses caused by price inversion should be based on market conditions, allowing dealers to have clear expectations and relative calculation standards. Second, shorten the rebate redemption period. Among the surveyed automobile brands, 18 brands have a rebate redemption period of fewer than 30 days, fully reflecting their social responsibility and brand image. Given the importance of rebates to dealers, all brands are urged to adjust their rebate redemption periods to not exceed 30 days. Third, no longer impose excessive restrictions on rebate redemption and use. Among the surveyed automobile brands, 9 brands directly give rebates to dealers in cash form and allow dealers to freely use them. It is recommended that all brands provide rebates in cash to dealers and ensure that dealers can use them freely. At the same time, do not set overly stringent assessment conditions for rebate redemption.