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In the high desert just 69 miles from Los Angeles, the Antelope Valley Transit Authority has become the first public transportation system in North America to go fully electric.
Some 57 of AVTA’s 87 battery electric coaches and buses were built by BYD at its Lancaster Coach & Bus Manufacturing facility. And many BYD’s employees and their families are served by the agency in the Antelope Valley.
In order to achieve its fully electric fleet, R. Rex Parris, the visionary mayor of Lancaster, initially flew to China in 2010 to recruit BYD, and the company then established its first assembly plant in North America in the city.
Formed in 1992 by a Joint Powers Agreement between the cities of Lancaster, Palmdale and Los Angeles County, the AVTA serves that Lancaster-Palmdale area. In 2014, AVTA agreed to purchase up to 85 new all-electric zero emission buses from BYD, officially becoming the first transit agency in the nation to commit to a 100% electric fleet.
“This is an important and wonderful accomplishment,” said Stella Li, President BYD Americas. “We’re proud to have worked closely with AVTA to make this happen and know it’s the beginning of great things for all Californians.”
Portions of the fleet were purchased with the help of state funding, including $28.5 million from the Transit and Intercity Rail Capital Program (TIRCP) administered by Caltrans and the California State Transportation Agency.
Every American-built, zero-emission BYD bus eliminates approximately 1,690 tons of CO2 over its 12-year lifespan, according to the U.S. Transportation Department. This is equivalent to taking 27 cars off the road. Each bus also eliminates 10 tons of nitrogen oxides and 350 pounds of diesel particulate matter, improving air quality in the communities that they serve.
BYD is America’s first battery-electric bus manufacturer that has both a unionized workforce and a Community Benefits Agreement, which sets goals for hiring veterans, single parents, second chance citizens, and others facing hurdles in obtaining manufacturing employment.
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 $7.69 billion as of December 31, 2021.
© 2022 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.