Changan Automobile (000625) on June 7 issued a public statement regarding the online Complaint Letter to the Purchasing Department of Changan Automobile. It stated that Changan Automobile has never received any "letter" from any supplier.
"Due to changes in raw material prices, changes in demand, technological innovation and other reasons, upstream and downstream companies in the supply chain negotiate supply prices every year, and that’s a conventional practice in the automotive industry. The methods adopted are all based on the business negotiations between Changan Automobile and the spare parts companies, and the settlement prices are all implemented in accordance with the business contracts signed after the negotiations. The content of "direct deduction of production value" and "direct deduction of payment for goods" mentioned in the letter is not true.”
In addition, Changan Automobile has reported the defamation of goodwill involved in the letter to the public security authority. The case is now being investigated.
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