Due to the COVID-19 epidemic, the automobile industry has had a difficult start this year.
A few days ago, Toyota Motor announced that it has decided to extend the suspension of production at its Chinese factories until February 16, taking into account the guidelines of the State Council and local governments, as well as the impact of the epidemic on parts and logistics. On the same day, Renault also announced that due to disruptions in China's supply chain, its Korean subsidiary RSM's Busan plant will suspend production for four days starting from February 11. Also facing the crisis of production suspension is FCA, which stated that if Chinese parts suppliers cannot resume production as soon as possible, a European factory will suspend production within 2-4 weeks. Earlier, due to the shortage of Chinese-made parts, Hyundai Motor had suspended production at its factories in South Korea and postponed the resumption of operations at its factories in China until February 17. In addition, parts giant Bosch has also expressed concern about the supply cutoff crisis that may be triggered by the epidemic.
Image source: Toyota China
Just imagine, even car companies and parts giants such as Toyota, FCA, and Bosch are difficult to deal with the epidemic calmly, let alone those with relatively large scales. For small parts companies, life and death depend on a thin line. More importantly, there are not a few such companies in the automotive field. According to relevant statistics, the total number of auto parts companies in China currently exceeds 100,000, most of which are small and medium-sized enterprises. Therefore, how to ensure the normal production and operation of such enterprises has become the focus of current attention.
The good news is that in order to better support the development of small and medium-sized enterprises, Beijing, Shanghai, Suzhou, Chongqing, Guangdong, Haikou, Liaoning, Qingdao and other provinces and cities have recently introduced policies to reduce the burden on enterprises, We will provide policy support in terms of increasing financial support and stabilizing the workforce to reduce the burden on small and medium-sized enterprises.
Increase support for burden reduction
The main measures include suspending some administrative fees, reducing or exempting rents for small, medium and micro enterprises, applying for tax deferrals for enterprises with operating difficulties, and providing financial support to relevant enterprises and individuals. Tax incentives, subsidizing R&D costs for small and micro enterprises, mitigating the outstanding impact of the epidemic, etc.
For example, in terms of reducing or exempting corporate housing rents, Shanghai has proposed that small and medium-sized enterprises that rent commercial properties of state-owned enterprises in the city to engage in production and business activities will first be exempted from rent for two months in February and March; Enterprises that lease indirectly should ensure that rent reductions and exemptions are implemented so that the actual operating small and medium-sized enterprises can ultimately benefit.
Beijing City stated that small, medium and micro enterprises that rent properties from state-owned enterprises in Beijing City and districts to engage in production and business activities and continue to operate in accordance with government requirements or close operations in accordance with epidemic prevention regulations and do not lay off employees or reduce layoffs will be exempted from 2 Monthly rent; if the property is rented for office use, a 50% reduction in February rent will be given. For enterprises that reduce or reduce rents for small, medium and micro enterprises renting houses during the epidemic, the municipal government will provide certain financial subsidies.
The relevant policies of Sichuan Province and Chongqing Municipality are to reduce or exempt 1 to 3 months of rent for small, medium and micro enterprises that rent state-owned assets for business purposes during the epidemic period. Guangdong Province has waived the first month's rent for state-owned assets for business use, and halved the second and third month's rent for private lessees who have been severely affected by the epidemic and cannot operate normally. Haikou City is offering small and medium-sized enterprises that rent state-owned assets for business purposes, but are unable to resume normal production due to the impact of the epidemic, upon application by the enterprise, the rent will be reduced or exempted for three months starting from February 2020.
In terms of deferring tax returns, Shanghai, Beijing, Suzhou, Chongqing, Haikou and other places have stated that small, medium and micro enterprises that have difficulty filing tax returns due to the epidemic can apply for deferment of tax payments in accordance with the law, up to a maximum of 3 days moon. In addition, Shanghai has also proposed that taxpayers who fail to declare and pay taxes on time due to the impact of the epidemic can be exempted from corresponding late payment fees and tax administrative penalties after confirmation by the competent tax authorities.
Liaoning Province also proposed that for small and medium-sized enterprises that are affected by the epidemic and face temporary difficulties in production and operation and are expected to recover, and are unable to pay water, electricity, and gas bills on time, the enterprise shall apply to the competent authority, and upon approval The payment can be deferred later, up to 3 months. Haikou City has also proposed that small and medium-sized enterprises that have been seriously affected by the epidemic and are facing temporary production and operation difficulties can first pay 50% of the total water, electricity and gas bills in the first quarter of 2020, with the approval of the relevant competent authorities of this city. The remaining 50% can be deferred for up to 3 months, exempting enterprises from late payment fees or liquidated damages due to delayed payment of fees.
Increase financial support
The main measures include ensuring that the credit balance of small and micro enterprises does not decline, providing financial support to enterprises through multiple channels, increasing support for enterprises with liquidity difficulties, Reduce corporate financing costs, expand direct financing channels, strengthen financing guarantee support, etc.
For example, Beijing, Shanghai, Suzhou, Liaoning, Chongqing and other places have proposed not to withdraw loans, continue to lend, and not to suppress loans to enterprises that have temporary difficulties in operating due to the impact of the epidemic but have development prospects. Among them, Beijing has also proposed that small, medium and micro enterprises that have been seriously affected by the epidemic and have difficulties in repaying their loans when due can be extended or renewed. Suzhou and Chongqing proposed that banking institutions should increase support for small and micro enterprises to ensure that the credit balance of small and micro enterprises in 2020 is not lower than the balance of the same period in 2019.
In addition, Beijing also proposed that the stock pledge agreement of small and medium-sized enterprises expires during the epidemic prevention and control period. If the enterprise applies for an extension due to difficulty in repayment, it can negotiate with financial institutions such as securities companies for an extension of 3 to 6 months. .
Shanghai encourages Shanghai Pudong Development Bank, Bank of Shanghai, and Shanghai Rural Commercial Bank to increase credit to industries that are fighting the epidemic and affected by the epidemic, as well as small, medium and micro enterprises. The relevant loan interest rates during the epidemic prevention and control period are based on the same period. The loan prime rate (LPR) will be reduced by at least 25 basis points, and other financial institutions in Shanghai are encouraged to follow suit.
Guarantee the normal production and operation of enterprises
The main measures include implementing policies to assist enterprises and stabilize employment, deferring the payment of social insurance premiums, implementing training fee subsidy policies, appropriately reducing employee medical insurance rates, and implementing flexible employment policies etc.
In terms of policies to assist enterprises and stabilize employment, Beijing has proposed that insured enterprises that have been greatly affected by the epidemic, face temporary production and operation difficulties and are expected to recover, and insist on no layoffs or fewer layoffs, can receive a 6-month layoff. Unemployment insurance premiums will be refunded according to the city's monthly per capita unemployment insurance benefit standard and the number of insured employees in the previous year.
During the epidemic, for small, medium and micro enterprises that are in line with the functional positioning and industrial development direction of the capital, if the average number of employees of the enterprise as of the end of April is the same as or increased by less than 20% (exclusive) compared with the average number of the previous year, The enterprise will be given a one-time subsidy of 30% of the social insurance premiums payable for three months; if the average number of employees of the enterprise has increased by 20% or more compared with the average number of the previous year as of the end of April, the enterprise will be given a one-time subsidy of 30% of the social insurance premiums payable by the enterprise for three months. 50% subsidy on insurance premiums.
Shanghai City proposes that in 2020, the city will continue to refund 50% of the total unemployment insurance premiums actually paid by the units and their employees in the previous year to eligible employers that do not lay off employees, have fewer employees, and will The start and end dates of the employee social insurance payment year (including the employee medical insurance year) are adjusted from July 1 of the current year to June 30 of the following year, postponed by 3 months. If the city's social insurance participating units, flexible employment personnel and urban and rural residents fail to register for insurance and pay social insurance premiums on time, they will be allowed to make up for it after the epidemic is over.
Not only that, Shanghai also proposed that enterprises that have difficulty in production and operation due to the impact of the epidemic can stabilize their jobs through salary adjustments, job rotations, flexible working hours, and comprehensive adjustments to the use of rest days within the year. Specifically, The method shall be determined through consultation between the enterprise and its employees.
Chongqing City stated that small and medium-sized enterprises that are affected by the epidemic and have difficulty paying property tax and urban land use tax can apply to the competent tax authorities, and after review, they will be given no less than 2 months. reduction of tax payable. For small and medium-sized enterprises that are unable to file tax returns on time, they will be allowed to defer their tax returns in accordance with the law. If they meet the conditions for deferred tax payment, they will be allowed to defer their tax payments in accordance with the law. The maximum period shall not exceed 3 months. For enterprises facing temporary production and operation difficulties and indeed unable to pay social insurance premiums in full, the collection period for pension insurance, unemployment insurance and work-related injury insurance premiums payable in the first quarter of 2020 can be extended to the end of April. For small, medium and micro enterprises that encounter difficulties in production and operation, they can apply to reduce the housing provident fund payment ratio, which can be reduced to as low as 5% as prescribed by the state; for those that meet Chongqing's deferment conditions, the enterprise is allowed to defer payment for up to one year.
Optimize the environment for enterprises to resume work
The main measures include strengthening epidemic prevention guidelines, coordinating protection, making every effort to ensure the supply of daily necessities such as "vegetable basket" products, and standardizing enterprise employment.
For example, Guangdong Province has stated that it will refine its guarantee plan for resumption of work and production. One enterprise, one policy will help enterprises coordinate the return of employees, especially professional and technical personnel, as well as masks, protective clothing, disinfection supplies, and testing equipment. The purchase of prevention and control materials such as thermometers.
It also encourages large enterprises to set up centralized isolation points, and encourages various development zones above the provincial level (high-tech zones, economic development zones, industrial parks) to set up centralized isolation points uniformly by the management committee. For small and medium-sized enterprises that do not have the conditions to set up centralized quarantine on their own, the local government will make centralized arrangements.
Shanghai also stated that it will actively supervise and help enterprises that resume work and production implement epidemic prevention safety measures, focus on the needs of various enterprises for resumption of work and production and operation, and strengthen the supply of epidemic prevention materials such as masks, thermometers, and disinfectants. Relying on the Yangtze River Delta regional cooperation mechanism, we will give full play to the role of professional organizations such as industry associations and industry alliances, strengthen business docking through raw material supply, logistics and transportation, and other methods, and effectively help companies resume production and work.
Liaoning Province proposed to make every effort to ensure the supply of daily necessities such as "vegetable basket" products, actively organize the production of vegetables, livestock and poultry, promote related feed, slaughtering, and processing enterprises to speed up the resumption of production, release corn in stock, and ensure breeding meet industrial production needs and increase the supply of meat, eggs, and milk. Strengthen transportation security and promptly stop illegal activities such as setting up cards to intercept and block traffic without authorization.
Unique summary: There is no doubt that the introduction and implementation of the above policies can well help small and medium-sized enterprises get out of the current operating difficulties and resume production as soon as possible. However, the impact of the epidemic on enterprises is in all aspects. In addition to the government's help, enterprises should rely on their own capabilities to actively look for new business opportunities and business models during the epidemic and "overcome the crisis" as soon as possible.
This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.