Plugged in: Does Buffett prove BYD is golden?
What does the oracle of Omaha know about cars?Not much, according to Warren Buffett, but Buffett partners, Charlie Munger and David Sokol, knew enough and Buffett listened. Thus, last fall Buffett settled on a 10 percent share of BYD.
Why?
According to a great Fortune piece, the Buffett team now believes that BYD could become the world's largest automaker thanks to its ability to sell plug-in hybrid cars and other electric vehicles at a cheaper cost than other manufacturers. For instance, BYD's current plug-in, the F3DM costs just $22,000 - far cheaper than most hybrid cars on the road today.
Unfortunately, don't expect a BYD hybrid in America anytime soon. BYD isn't sure it wants to come to America because the economics are not compelling for plug-in viability, however, BYD is interested in selling batteries to American auto manufacturers, which is ultimately, the key to BYD's future.
Thus far BYD believes it has developed a technological breakthrough enabling the safe and cost-effective mass-production of lithium batteries. If true, even mighty Toyota better watch out according to Warren Buffett.
Labels: byd f6 plug-in hybrid, Hybrid Vehicles, plug-in hybrid vehicles
posted by Dahcredyns at
10:07 AM
3 Comments:
I think that Buffet has a great knack for predicting what companies will be successful in the long term.
ok 'the economics are not compelling for a plug in hybrid' ??? Did I just miss something here ? This site talks a lot about hyrids, and here is a company that can offer a luxury hybrid PLUG IN no less for around 22k...and we just say 'there is no market here for them ?"
I beg to differ, however I would add that Toyata, Honda, Hyundai and more will offer great competition to BYD in china.
Buffett has used the cheap labor of the masses to feed the wealth of the 5% worldwide....hes statistically good with the numbers but thats it..his value and worth as a person is = to any laborer anywhere in the world feeding his wealth at an average rate of 1 US dollar a day.
I didn't say it. BYD said it. BYD doesn't believe the economics for plug-ins are there yet in America.
In terms of this $22,000 car, BYD has only sold about 50 of these cars, so the real world costs might be different. Moreover, making this car so that it meets us safety standards, etc. might have costs.
Still, that's BYD's statement, not mine.
Post a Comment
<< Home