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The Antelope Valley Transit Authority (AVTA), which serves some 450,000 residents of the cities of Lancaster and Palmdale, California, and the unincorporated portions of northern Los Angeles County, has ordered up to 85 pure-electric buses from China’s BYD Company Limited.
The buses will be built at BYD’s manufacturing facility in Lancaster, California.
Berkshire Hathaway owns roughly 9.1% of the company, and Berkshire’s stake is worth roughly $12.3 billion.
“BYD Coach and Bus is proud to partner with AVTA on its groundbreaking decision to completely electrify its fleet,” said Stella Li, president of BYD Motors. “With more than 6,000 electric buses deployed world wide and 90 million miles of dependable service already accumulated, we know that our technology will help AVTA save money and improve local air quality. Pure-electric powered transportation is no longer in the future – it’s here now. I hope other transit agencies in California and across the country take note and follow the example AVTA has set today.”
AVTA notes that it is anticipating a cost savings as a result of electrifying its fleet. Over the lifetime of the new electric bus fleet, the transit agency forecasts it could save more than $46 million compared to an all diesel bus fleet, equivalent to $46,000 per bus per year in savings. And, by reducing dependence on foreign oil imports, AVTA will no longer be subject to oil price volatility for its bus fleet. This will help create greater stability for budget forecasting for the fleet manager – an important factor for a public agency.
The AVTA expects to take delivery of 29 electric buses within the next 12 months and is working to secure additional grant funding from the Air Resources Board to purchase another 17 buses.
“This is a historic day for AVTA which has been working diligently to secure grant funding to purchase these state-of-the- art zero-emission vehicles,” said Len Engel, executive director of AVTA. “We are proud to be the first transit system to adopt a goal of ‘100% Green in 2018’ and we look forward to leading the nation toward a new alternative in public transportation.”
Additional benefits AVTA will see as a result of electrifying its entire fleet include:
• Noise Pollution Reduction: noise pollution will be reduced by 50 percent, making it a more pleasant ride for bus operators and transit passengers.
• Emissions Reductions: AVTA’s all-electric fleet will provide elimination of CO2, NOx, PM10 and PM2.5, thereby improving air quality and positively impacting human health.
• Safer Work Environment for Technicians: The electric batteries are safe, thermal runaway proof, non-toxic, and maintenance free. There are no diesel or diesel emission fluids needed for bus maintenance, providing a safer and healthier working environment for vehicle technicians.
BYD’s Pure-Electric Buses Around the Globe
BYD’s electric buses have been hot sellers not only in China, but around the world, with orders from the U.S, Brazil, Columbia, England, Malaysia and Thailand.
In September 2015, BYD scored a massive order in the U. S. from the state of Washington. BYD won a contract from the Washington State Department of Transportation (WSDOT) for up to 800 pure electric buses.
For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.
© 2016 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.