China’s BYD (Build Your Dreams) has scrapped its planned truck manufacturing plant in Windsor, Ontario, Canada.
BYD’s Ted Dowling, Vice President of BYD Canada, was quoted as saying that the plant doesn’t currently make sense for the company.
As to whether it will ever be revisited, “When the business case makes sense, we’ll do it,” Dowling noted.
In December 2017, BYD announced that they would build the assembly plant. “BYD is working on many significant orders that will bring final assembly to the province,” said a statement at that time.
No specific reason has been given for the change in plans.
BYD and Berkshire Hathaway
In 2008, Berkshire Hathaway bet on BYD’s potential, purchasing 225 million shares. It’s an investment that has paid off handsomely. Berkshire’s original investment of $230 million has grown in value almost ten-fold, and is now worth roughly $1.96 billion.
For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.
© 2018 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the 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.