Plug-In Hybrid Maker BYD Reportedly Considering Leasing Its Technology
By John O'Dell January 23, 2009
China's BYD Co., whose auto-making unit just launched the world's first mass-produced plug-in hybrid, is believed to be considering a plan to license the technology to other car companies.
Citing a report in China Knowledge Press, analysts at Global Insight said that unnamed sources say that companies in the U.S., Europe and Japan have shown interest.
Such deals, whether with BYD Automotive or another hybrid maker, would be a double-edged sword.
Licensing plug-in hybrid technology would enable smaller carmakers to ready competitive hybrids more rapidly and at less expense than if forced to develop their own technology, but would leave a foreign entity in control of a key resource.
BYD is one of the largest battery producers in the world and has based its plug-in technology on its proprietary (and low-cost) batteries.
Plug-in hybrids such as the F3DM model (left)
that BYD has begun selling in China and plans to export next year to North America and Europe require larger and more powerful battery packs than conventional hybrids because they are designed to operate in all-electric mode for considerably longer periods of time.
The reduced cost of BYD's batteries makes its technology particularly attractive to carmakers with pinched R&D budgets.
But if Chinese batteries become the staple and widespread use of licensed hybrid technology replaces or even significantly delays internal development of alternative power plants, the industry would be trading the problem of dependence on imported oil for dependence on imported batteries and hybrid systems.
If used as a stopgap while proprietary technologies are being developed, though, deals such as BYD is considering could help small, independent automakers become competitive with giants such as Toyota in a market that demands the kind of fuel-efficiency and clean emissions that electric-drive automobiles can provide.
John O'Dell, Senior Editor
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Part of me wants to say that if the Chinese government doesn't respect the intellectual property of other countries, other countries shouldn't respect their IP. Just take it.
It's a good thing that I'm above making such comments.
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