BYD to Sell Electric Yard Trucks to PepsiCo

(BRK.A), (BRK.B)

Chinese battery and vehicle maker BYD will deliver three 8Y electric yard tricks to PepsiCo.

The company’s Frito-Lay facility in Modesto, California, will test out the trucks as part of a state project designed to showcase economically and environmentally sustainable warehousing and distribution technology.

The BYD 8Y electric yard trucks are part of what the California Air Resources Board (CARB) has termed a bold and transformative effort to replace the use of all diesel-powered freight equipment within one of Frito-Lay’s largest facilities.

“We’re honored to be part of this major milestone demonstrating the operational, economic, and environmental sustainability benefits of our zero-emission trucks,” said John Gerra, BYD Director of Business Development, Electric Trucks. “BYD trucks are out there right now working hard every day throughout California.”

The San Joaquin Air Pollution Control District is the lead agency with funding from CARB’s Zero and Near-Zero Emission Freight Facilities program.

The Frito-Lay Zero and Near-Zero Emission Project: Modesto, CA is part of California Climate Investments, a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities.

The project includes equipment testing, a one-year demonstration period, data collection, and associated reporting. The San Joaquin APCD anticipates the various equipment to be rolled out at different times to complete the demonstration, with full project completion in early 2021.

CARB anticipates the project will be emulated statewide.

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.

© 2019 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.