China's BYD Plans to Sell Plug-in Electric Car in U.S. Market Next Year, WSJ Reports
By Scott Doggett August 24, 2009
China's BYD Auto is finalizing plans for all-electric plug-in vehicle - the e6, pictured - that would be sold in the U.S. next year, roughly a full year ahead of schedule, The Wall Street Journal reported today (subscription required), citing an interview with BYD Chairman Wang Chuanfu.
In an interview at a BYD factory in Xian, China, Wang said the company aims to use money from a planned new-share sale in China to help pay for the U.S. push, as well as for a second production line for automotive lithium-ion batteries near BYD's Shenzhen headquarters.
The Journal described the e6 as a five-seat passenger car that can be fully charged in seven to nine hours when plugged into a standard (presumably 110-volt) home outlet.
According to BYD's Website, the e6: can receive a quick charge (presumably from a 220/240-volt outlet) to 50 percent capacity in just 10 minutes; is capable of accelerating from zero to 60 miles an hour in 8 seconds; has a top speed of 100 mph; and can travel 249 miles on a single charge.
The Website also says that four power offerings are planned for the e6: 75 kilowatts (101 horsepower), 75+40 kilowatts (101+54 horsepower), 160 kilowatts (215 horsepower) and 160+40 kilowatts (215+54 horsepower). The "+" signs indicate the presence of two electric motors.
Wang said BYD wants to build up its brand name in the U.S. by offering one of its most advanced cars, the five-seat e6 pictured here, before eventually expanding its offerings.
He said the company plans to pick a specific region within the U.S. and initially market "a few hundred" e6s, priced at slightly more than $40,000, through a small number of dealers.
"In the beginning, our target customers are going to be government agencies, utilities and maybe some celebrities," Wang said, according to the Journal. He added that BYD hopes to enter Europe with a similar strategy in 2011 or later.
BYD, which lists shares in Hong Kong, plans to sell up to 100 million new shares in mainland China ahead of a listing on the Shenzhen Stock Exchange as early as next year. The offering, which still needs government approval, could raise up to $500 million based on current prices.
One source of Wang's confidence in attacking the U.S. car market is BYD's ties with MidAmerican Energy Holding Co., a unit of American moneyman Warren Buffett's Berkshire Hathaway Inc., which paid about $230 million for a 9.9 percent stake in BYD last September.
As we reported in July, MidAmerican Energy had earned about $1 billion in paper profits on the $230 million by last month. Or put another way, the company had earned $77 million a month on the $230 million for the 10 months ending last month. Dang.
MidAmerican Chairman David Sokol, who was also interviewed in Xian, said MidAmerican is ready to assist BYD's foray into the U.S. auto market in "any way we could be helpful." MidAmerican also might invest in BYD's new initiatives in the U.S., which, in addition to automobiles, could involve solar panels and battery technology for power utilities.
Sokol also said MidAmerican hopes to boost its BYD stake if the chance arises. "If in the future there is an opportunity for us to continue to invest in BYD, we will be happy to increase our stake over time, but we will do it in cooperation with BYD," he said. Wang said an increase is "negotiable."
BYD already sells a plug-in hybrid car, with a small gasoline engine to charge batteries, called the F3DM. BYD began selling it late last year to fleet customers in China but has since failed to make it available for consumers. Some analysts have speculated that problems with the car's lithium-ion-battery technology might have dogged the car.
The Journal reported that Wang tried to dispel the criticism, saying the delay is because BYD is waiting for government incentives for private buyers in China to buy "new energy cars."
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