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Berkshire Hathaway-Backed BYD Receives Bus Order From DB Regio Bus

(BRK.A), (BRK.B)

BYD, the world’s leading electric bus manufacturer, has secured its first order from DB Regio Bus, the national bus transport division of one of Germany’s largest transport operators, Deutsche Bahn.

The order is for BYD’s latest generation 12-meter eBus model, equipped with a host of new technical innovations.

In a significant move, BYD and Deutsche Bahn have together signed a framework agreement paving the way for further BYD eBus orders in 2021.

Initially, a total of five pure-electric, emissions-free 12-meter BYD eBuses will enter service with DB Regio Bus later this year in Ettlingen, in the federal state of Baden-Württemburg. It is the second delivery of BYD electric buses in Germany after 22 vehicles were handed over in October 2020 to Public Transport Operators (PTOs) in Gelsenkirchen and Bochum.

Despite restrictions still in place following the coronavirus pandemic, BYD continues to meet its build and delivery schedules for Local Authority and PTO customers right across Europe.

The order from DB Regio Bus is also the first for BYD’s latest generation 12-meter, low-floor eBus model.

Launched at Busworld in 2019, the new, enhanced model features a host of upgrades including an all-new air-conditioning system, a ‘6-in-1’ controller which integrates the vehicle’s principle electronic components, a larger capacity 422 kWh battery capacity, and BYD’s FleetLink vehicle monitoring system to provide PTO’s with a highly effective fleet management tool. From an interior and exterior design perspective, BYD’s iF award-winning ‘Home from Home’ concept combines a dynamic visual aesthetic with high levels of safety and comfort to deliver a complete sense of well-being for passengers.

“This important order is indicative of the confidence that Deutsche Bahn places in our best-selling, and latest generation, 12-metre product,” said BYD Europe Managing Director, Isbrand Ho, “which has also been rubberstamped by the framework agreement for the supply of eBuses later this year. Moreover, the order from such a high profile Public Transport Operator is acceptance of the BYD marque generally in the German bus market. We are a supplier of total eMobility solutions,” he said, “and our ability to form strong partnerships with Local Authorities and PTOs will mean, I believe, that we’ll see more and more BYD eBuses in towns and cities throughout Germany.”

BYD and Berkshire Hathaway

In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares for $232 million. It’s an investment that has paid off handsomely. Berkshire’s original investment of $232 million had grown in value to $5.897 billion as of December 31, 2020.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.