Why Warren Buffett is investing in electric car company BYD - Apr. 13, 2009
Wang about the company name. It's been reported that BYD stands for "Build your dreams,"
Warren Buffett is predicting all cars will be electric by 2030. He has invested substantially in Build Your Dreams. BYD has started with deployment of hybrids in China, and plans to come into the U.S. with the totally electric BYD e6.
The company itself is frugal. Until recently, executives always flew coach. ... This attention to costs is one reason that BYD has made money consistently even as it has expanded into new businesses. Each of BYD's business units - batteries, mobile-phone components, and autos - was profitable in 2008, albeit on a small scale. Overall, net profits were around $187 million. BYD, which is traded on the Hong Kong exchange, has a market value of about $3.8 billion. That's less than Ford (F, Fortune 500) ($7 billion at the beginning of April), but more than General Motors (GM, Fortune 500) ($1.3 billion). Near the end of our conversation, I ask Wang about the company name. It's been reported that BYD stands for "Build your dreams," but he says he added that as the company motto only later. Others say that as Motorola, Apple, and Berkshire Hathaway have made their way to Shenzhen, the name has taken on yet another meaning: Bring your dollars
A history and analysis of electric car company BYD and how it will compete with bigger carmakers.
edan in China, topping well-known brands like the Volkswagen Jetta and Toyota (TM) Corolla. BYD has also begun selling a plug-in electric car with a backup gasoline engine, a move putting it ahead of GM, Nissan, and Toyota. BYD's plug-in, called the F3DM (for "dual mode"), goes farther on a single charge - 62 miles - than other electric vehicles and sells for about $22,000, less than the plug-in Prius and much-hyped Chevy Volt are expected to cost when they hit the market in late 2010. Put simply, this little-known upstart has accelerated ahead of its much bigger rivals in the race to build an affordable electric car. Today BYD employs 130,000 people in 11 factories, eight in China and one each in India, Hungary, and Romani