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Minority Stock Positions Stock Portfolio

Anheuser-Busch Highlights First Zero-Emission Beer Delivery Featuring BYD Truck

(BRK.A), (BRK.B)

Beer brewer Anheuser-Busch, in partnership with Nikola Motor Company (Nikola) and BYD Motors LLC, completed their first ever ‘Zero-Emission Beer Delivery’ in the company’s hometown of St. Louis – utilizing both companies’ innovative fleet technology to deliver beer from the local Anheuser-Busch brewery to the Enterprise Center using only zero-emission trucks.

The Nikola hydrogen-electric truck picked up the load of beer, including flagship beer brand Bud Light, and delivered it to Anheuser-Busch local wholesaler partner, Lohr Distributors – marking the first commercial delivery onboard a Nikola hydrogen-electric vehicle. Lohr Distributors then delivered the beer to the Enterprise Center, home of the St. Louis Blues, on a BYD electric truck – a milestone delivery for the brewer as the beer reached its destination with zero-emissions from transportation.

“At Anheuser-Busch, we are continuously searching for innovative ways to improve sustainability across our entire value chain, progressing towards reaching our sustainability goals and driving our industry forward,” said Ingrid De Ryck, Vice President of Procurement and Sustainability at Anheuser-Busch. “No single company can build a more sustainable future alone but this zero-emission delivery has shown what is possible when we bring together the various strengths and assets within our supplier network to work towards a shared objective of a better world.”

The delivery builds on Anheuser-Busch’s ongoing commitment to sustainability and existing partnerships with both Nikola and BYD. Through their 2025 Sustainability Goals, Anheuser-Busch has committed to reducing carbon emissions across their value chain by 25% by 2025.

Last year, Anheuser-Busch placed an order for up to 800 hydrogen-electric powered semi-trucks from Nikola, a pioneer in hydrogen-electric renewable technology. The partnership will help the brewer transition their entire long-haul dedicated fleet to zero-emission vehicles.

“As the first commercial delivery of freight with our hydrogen-electric truck, this is an exciting time for both Nikola and Anheuser-Busch. This milestone will become an example for all other OEM’s to move away from diesel trucks and towards zero emission vehicles,” said Trevor Milton, Nikola’s chief executive officer. “We look forward to helping the Anheuser-Busch team achieve their sustainability goals by leveraging Nikola’s zero-emissions technology. We are now preparing production vehicles for Anheuser-Busch and plan on delivering the trucks as fast as possible.”

To complement the Nikola partnership within their routes, Anheuser-Busch also announced a pilot project with BYD in California last month to improve the sustainability of their fleet at four Anheuser-Busch distribution facilities across southern California. The 21 BYD electric trucks as well as a 958.5 kW solar array to charge the vehicles will be implemented this year as the largest Class 8 electric truck deployment in North America.

“Partnering with Anheuser-Busch is a great opportunity to showcase BYD’s performance and reliability with an industry leader,” said Stella Li, President of BYD Motors. “Our dedication to innovation pairs nicely with Anheuser-Busch’s sustainability commitment.”

To further highlight the power of partnership, Anheuser-Busch is hosting more than 100 strategic suppliers and partners in St. Louis this week for their inaugural Eclipse Summit to discuss best practices and align on collective action in sustainability. Both Nikola and BYD will be participating in the summit to highlight their cutting-edge technology and the impact of their partnerships with the brewer.

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.

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Mouser Electronics

Mouser Electronics Builds Local Customer Service Center in the Philippines

(BRK.A), (BRK.B)

Berkshire Hathaway’s Mouser Electronics, Inc., the industry’s leading new product introduction distributor with the widest selection of semiconductors and electronic components, is pleased to announce a significant expansion of its customer service in Asia with the addition of a Customer Service Center in the Philippines.

The new customer service center located in Manila will serve local design engineers, buyers and hardware innovators in local languages and time zone, facilitating their design activities and helping them locate the newest products for their designs. Mouser now has 27 service locations worldwide, with 11 locations in the Asia Pacific region. A grand opening event was held today for the new branch opening.

Electronics exports from the Philippines have increased steadily in recent years, including record high growth in 2017, and demand within the country remains high. Semiconductors and electronics account for the largest contribution to the country’s manufacturing sector, with emerging focus on design and innovation.

“Mouser’s business in the Philippines has seen over 40 percent annual growth in the past two years,” said Mark Burr-Lonnon, Mouser’s Senior Vice President of Global Service & EMEA and APAC Business. “The exceptional growth is not only a result of strong regional demand for semiconductor and electronic components, but also proof of our successful strategy to provide fast delivery of the newest products and leading technologies. We see our local presence here as an important step in providing the best-in-class service that customers in the Philippines have come to expect.”

As the global authorized distributor with the newest semiconductors and electronic components, Mouser gives design engineers, buyers and innovators easy access to the newest electronic components and comprehensive design resources. The Services and Tools site, available on Mouser.com, makes it easy for customers to search for products, personalize their orders and access their previous purchases, helping to speed time-to-market. With real-time availability 24 hours a day, 7 days a week, the site’s many resources offer unique capabilities that help customers in their design and creation processes.

Mouser has been offering products and services to engineers in the Philippines through its comprehensive website, Mouser.ph, as well as via phone, email and fax. The new office will better support existing customers while also enhancing Mouser’s overall marketing efforts to serve new customers in the area.

© 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.

Categories
Minority Stock Positions Stock Portfolio

BYD Receives 379 E-Bus Order from Bogotá, Columbia

(BRK.A), (BRK.B)

BYD will provide the Colombian capital of Bogotá with a fleet of 379 pure electric buses, in a deal awarded by the capital’s TransMilenio SA mass transport authority.

The fleet will begin operations in September 2020, giving Bogotá the largest electric bus fleet on the continent and one of the largest in the world.

Along with the 64 pure electric buses in Medellín, Colombia will have a total of 443 BYD electric buses, putting it at the vanguard of Latin America’s rapid push towards public transport electrification.

The buses will be manufactured entirely by BYD and operate in the Integrated Public Transportation System – SITP, with the towns of Usme and Fontibón to be the first to enjoy the firm’s cutting-edge electric bus technology. This order also sees BYD again smashing the record for the largest electric bus order in the Americas, following its delivery of 183 buses to Chile during August 2019.

“With the arrival of zero emission electric buses to the SITP, we fulfilled a dream that this administration had proposed, and for which we worked hard, to give the city a better public transport service, with technology that’s both state-of-the-art and user-friendly,” said María Consuelo Araujo, General Manager of TransMilenio SA.

“The Somos Group has over 50 years of experience in passenger transport in Bogotá and 20 years in the TransMilenio system, for us the operation of electric buses is a great challenge and we trust that it will bring great benefits to all of Bogotá’s citizens,” said Enrique Wolf, General Manager of the Somos Group. “BYD has shown great interest in the Latin American and Colombian market and was an essential part of our decision to enter this business, by giving us the necessary confidence and solidity that should support such an important process.” Somos Group is one of the local bus operators that will run BYD electric buses.

“BYD’s successful bid to provide 379 buses today is a great achievement for Bogotá and TransMilenio, which is leading the global shift to cleaner and more sustainable transport,” said Lara Zhang, Country Manager of BYD Colombia. “More importantly, these electric buses produce zero emissions and are environmentally friendly, bringing better air quality and improved living conditions to local people. Today is an important milestone in the transport history of Bogotá, and every Bogotá resident should be proud of being part of the great transition to electric.”

It is estimated that in its first year of operation, this fleet will cancel out 21,900 tons of CO2 and 526 kilograms of PM 2.5 pollutant particles. It will also be 60% cheaper to operate these buses, compared to traditional diesel-powered buses.

BYD’s zero-emission transportation solutions have gained ground in Latin America, and now successfully service markets in many other countries across the region, including Ecuador, Chile, Brazil, Peru, Panama, Uruguay and Argentina, which join the nations across the world betting on greener, electrified public transport systems to help tackle climate change. Globally, BYD buses, taxis and other electric vehicles are present in more than 300 cities, 50 countries and regions.

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.

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Acquisitions Johns Manville

Johns Manville Acquiring ITW Insulation Systems

(BRK.A), (BRK.B)

Berkshire Hathaway’s Johns Manville has signed an agreement to acquire ITW Insulation Systems, a business owned by Illinois Tool Works Inc. that is well known in the industrial industry for its premium, low-temperature polyisocyanurate foam insulations and metal jacketing solutions.

ITW Insulation Systems has been a division of Illinois Tool Works Inc.

The deal is expected to close in early December.

“The acquisition of ITW Insulation Systems represents an important strategic opportunity to offer expanded insulation solutions to the industrial market,” said JM President and CEO Mary Rhinehart. “This will give us greater versatility and allow JM’s Insulation Systems business to continue to offer a robust and well-rounded portfolio of insulation solutions.”

ITW Insulation Systems has 100 employees who work at four manufacturing plants in the U.S. and Canada (Houston, Texas; La Porte, Texas; Edmonton, Alberta; and Mississauga, Ontario).

ITW Insulation Systems’ primary markets include refining, petrochemical, power, LNG, food & beverage, oil sands and other energy applications.

“There is substantial growth occurring in the cold and cryogenic markets,” said Bob Wamboldt, President of JM’s Insulation Systems business. “We wanted to participate more actively in this space and the product portfolio offered by ITW Insulation Systems allows us to do exactly that.”

JM plans to integrate ITW Insulation Systems as a key part of its industrial insulation portfolio without making significant changes to the existing operations at ITW Insulation Systems.

“JM’s Industrial Insulation business is a market leader, producing the broadest product portfolio of any manufacturer in the industrial insulation industry,” said Dave Skelly, General Manager of Performance Materials at JM. “Historically, this has included high-temperature calcium silicate, expanded perlite, mineral wool, microporous blankets and silica aerogel, and now, with the addition of ITW Insulation Systems, our portfolio includes both low-temperature polyisocyanurate foams and metal jacketing. These additions make our industrial insulation portfolio incredibly robust and allow us to be a single source for our customers’ insulation and jacketing needs.”

© 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.

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Berkshire Hathaway HomeServices

Mountain Sky Properties Joins Berkshire Hathaway HomeServices Network

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices, part of the HSF Affiliates LLC family of real estate brokerage franchise networks, has announced that independent brokerage Mountain Sky Properties has joined its network operating as Berkshire Hathaway HomeServices Mountain Sky Properties.

The brokerage remains independently owned and operated by local real estate veteran Cindy Stuart. It serves the greater Blue Ridge Mountains region from its Wytheville headquarters and offices in Bland and Hillsville. Berkshire Hathaway HomeServices is one of America’s fastest-growing real estate brokerage franchise networks with more than 50,000 agents and nearly 1,500 offices added to the brand since its launch six years ago. This includes global network members in Berlin and Frankfurt, Germany; London, England; Milan, Italy; Dubai, United Arab Emirates; Madrid and Barcelona, Spain; and Lisbon, Portugal.

“We’re proud to welcome Berkshire Hathaway HomeServices Mountain Sky Properties as our brand ambassador to the incredible Blue Ridge Mountains,” said network CEO Chris Stuart. “Cindy is a passionate, highly engaged leader and her team is smart and works hard to ensure client satisfaction.”

Cindy Stuart said her brokerage, founded in 2006, had progressed as far as it could as an independent operation. “I wanted to grow my company and expand its reach and influence,” she explained. “I looked at just about every real estate brokerage network and chose Berkshire Hathaway HomeServices. The brand has invested substantially in real estate technology and its tools, resources and support are second to none. In addition, we get to link the Berkshire Hathaway HomeServices name to ours and that’s great for business.”

With their brand transition, Mountain Sky Properties agents gain access to Berkshire Hathaway HomeServices’ active referral and relocation networks, and its “FOREVER Cloud” technology suite, a powerful source for lead generation, marketing support, social media, video production/distribution and more. Berkshire Hathaway HomeServices has aligned with Salesforce to deliver world-class technology support to its network members far into the future.

The brand also provides global listing syndication, professional training and ongoing education and the exclusive Luxury Collection marketing program for premier listings. Its Prestige Magazine showcases network members’ premium listings with a strong lineup of feature stories covering topics that appeal to high-end real estate consumers.

Cindy Stuart said FOREVER Cloud components will help her team cover more ground with even greater efficiency. “This is great news for our agents and clients who are spread across as many as 10 counties in Southwestern Virginia.”

She believes the Berkshire Hathaway HomeServices brand will help her as she recruits more of the region’s top sales professionals, and the brand will be an important asset as she expands Mountain Sky Properties to another key market: Blacksburg, home of Virginia Tech University, a percolating local economy and a healthy, growing real estate market.
“We couldn’t be more excited for the future,” Cindy Stuart said. “Our entire team is energized and ready to serve more of our region’s customers.”

© 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.

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Berkadia

Berkadia Appoints David Leopold as Head of Affordable Housing

(BRK.A), (BRK.B)

Berkadia, Berkshire Hathaway’s joint venture with Jefferies Financial Group, has appointed David Leopold as Senior Vice President and Head of Affordable Housing.

Leopold will lead Berkadia’s Affordable Housing team, a national platform that provides mortgage banking, investment sales and tax credit syndication services. He will report to Hilary Provinse, Executive Vice President and Head of Mortgage Banking.

“We are thrilled that David is joining Berkadia,” said Berkadia CEO Justin Wheeler. “He brings unparalleled experience in affordable housing and excitement and energy for the opportunities that lie ahead. Berkadia is committed to providing solutions to meet the critical need for affordable housing in communities across the country—something David has dedicated his career to. He is the perfect leader to spearhead our strategy to build the dominant presence in the affordable housing market, and we’re lucky to have him.”

At Freddie Mac, Leopold served as Vice President for Targeted Affordable Sales and Investments for the multifamily business. During his tenure, Leopold grew Freddie Mac’s annual affordable housing production from just over $2 billion in 2014 to about $9 billion, made up of new mortgage originations and structured finance. At the same time, he led the organization’s reentry into the tax credit equity market. He was also the primary contact with housing finance agencies, municipalities and community-based organizations for Freddie Mac Multifamily’s affordable housing and community development products and services.

“Berkadia has been making bold moves in the affordable housing space, adding talent and strategic capabilities to build a platform that is truly an industry leader,” said Leopold. “I’m excited to join this growing team and to bring my experience to bear to continue to fuel its exponential growth. There is a tremendous need for new and creative solutions to the complex challenges in the affordable housing landscape, and I’m excited to tackle those challenges at the helm of Berkadia’s talented Affordable Housing team.”

Prior to his tenure at Freddie Mac, Leopold led Tax Credit Equity Origination for Bank of America Merrill Lynch, where his team produced $1.2 billion in annual equity investments in low-income housing, historic and new markets tax credits. Prior to that, he managed Bank of America’s Community Development Lending platform, where he was responsible for $1.6 billion in annual loan originations and a portfolio of $4 billion in real estate secured assets.

Leopold has undergraduate and graduate degrees with honors from Fordham University and the University of Colorado, respectively.

About Berkadia

Founded in 2009 as a 50/50 joint venture between Berkshire Hathaway and Leucadia National Corporation (now known as Jefferies Financial Group), Berkadia is a third-party commercial mortgage servicer, as well as an approved lender for Fannie Mae, Freddie Mac, and HUD/FHA.

The company is among the top Freddie Mac and Fannie Mae multifamily lenders.

Berkadia owes its origins to GMAC Commercial Mortgage Corporation, which was acquired in 2009 by Kohlberg Kravis Roberts & Co., Five Mile Capital Partners LLC, and Goldman Sachs Capital Partners. Christened Capmark Financial, the company had $10 billion of originations in 2008 and a servicing portfolio of more than $360 billion before running into bankruptcy in October 2009.

In a deal approved by the bankruptcy court, Capmark sold its mortgage loan and servicing to the newly formed Berkadia in a deal worth $515 million.

The deal brought Berkshire into the heart of the commercial loan serving business, and the company has one of the largest commercial real estate servicing portfolios.

© 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.

Categories
Berkshire Hathaway HomeServices

Startup Brokerage Evolution Properties Joins Berkshire Hathaway HomeServices

(BRK.A), (BRK.B)

Berkshire Hathaway HomeServices has announced that local real estate veteran Julie Etter has formed real estate brokerage Evolution Properties and entered the network as Berkshire Hathaway HomeServices Evolution Properties.

Etter for several years led the Julie Etter Team as a top-producing agent serving Wrentham and surrounding markets. She launches her brokerage with more than 30 experienced agents and staff, many of whom have worked with Etter for 10 years. She selected her company name to symbolize how her career evolved from agent to team leader and now brokerage owner.

Evolution Properties is the 19th brokerage to join Berkshire Hathaway HomeServices this year. The network remains one of America’s fastest-growing real estate brokerage franchise networks with more than 50,000 agents and nearly 1,500 offices added to the brand since its launch six years ago. This includes global network members in Berlin and Frankfurt, Germany; London, England; Milan, Italy; Dubai, United Arab Emirates; Madrid and Barcelona, Spain; and Lisbon and Porto, Portugal.

“We are proud to welcome Julie Etter and her Evolution Properties team to our network,” said Berkshire Hathaway HomeServices CEO Chris Stuart. “Julie is a skilled and experienced leader who is also a terrific teacher – guiding and inspiring real estate professionals. As important, her team is talented, dedicated and ready to serve the region.”

Etter said she chose Berkshire Hathaway HomeServices for its distinctive brand and attractive value proposition. “The brand has a strong presence in our region, and it offers my team the tools and resources to help us grow and be our very best for clients,” she said. “We’re excited to begin a new era as Berkshire Hathaway HomeServices Evolution Properties.”

With their brand transition, Evolution Properties agents gain access to Berkshire Hathaway HomeServices’ active referral and relocation networks, and its “FOREVER Cloud” technology suite, a powerful source for lead generation, marketing support, social media, video production/distribution and more. Berkshire Hathaway HomeServices has aligned with Salesforce to deliver world-class technology support to its network members far into the future.

The brand also provides global listing syndication, professional training and ongoing education and the exclusive Luxury Collection marketing program for premier listings. Its Prestige Magazine showcases network members’ premium listings with a strong lineup of feature stories covering topics that appeal to high-end real estate consumers.

“My primary objectives are to help my agents grow their businesses and achieve new skills and standards as real estate professionals,” Etter said. “We will achieve those core objectives with our ongoing focus on continuous improvement and with help from FOREVER Cloud components and other network resources.”

Evolution Properties agents will begin training this week on the tools and resources provided by Berkshire Hathaway HomeServices. The brokerage will commemorate its brand transaction with an open house celebration early next year.

© 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.

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Pilot Flying J

Pilot Flying J Announces Parental Leave for its Employees

(BRK.A), (BRK.B)

Pilot Flying J, the 14th largest private company in America, with more than 28,000 team members, is adding paid, gender-neutral parental leave to its benefit package.

The benefit provides 100% paid parental leave for six weeks to all team members, both full- and part-time, who have at least one year of service and have worked at least 1,250 hours in the past 12 months.

“As a family-owned business that is one of the country’s largest private companies, it is critical that we support our team members with growing families,” said Ken Parent, president of Pilot Flying J. “We recognize the importance of focusing on your family’s well-being and that welcoming a new family member can be an exciting and stressful time. We strongly believe that paid parental leave for both mothers and fathers is a much-needed benefit, especially for hourly workers in the retail and convenience store industries and we are proud to provide this benefit to our team members.”

According to the U.S. Department of Labor, as of March 2018, only 17% of all civilian workers had access to paid family leave.

In the retail industry, where many employees are part-time and hourly, this number is even lower at 7%. In addition, 7 in 10 fathers in the U.S. that took parental leave only used 10 days of leave or less.

Pilot Flying J’s workforce is comprised of a wide variety of full and part-time roles across its locations, including the headquarters in Knoxville, offices in Texas, and the more than 650 travel centers across the U.S.

In 2017, Berkshire Hathaway made a $2.76 billion investment in Pilot Travel Centers. Under the terms of the agreement, the Haslam family will continue to own a majority of Pilot Flying J and Jimmy Haslam will remain as chief executive officer. Pilot Flying J President Ken Parent and the Company’s management team will also remain in place. The Company will continue to be headquartered in Knoxville, Tennessee.

Berkshire will become the majority owner in three more years.

© 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.

Categories
Minority Stock Positions Stock Portfolio

BYD and Toyota Form Joint R&D Car Venture

(BRK.A), (BRK.B)

BYD Company Ltd. and Toyota Motor Corporation have signed an agreement to establish a joint company to research and development for battery electric vehicles (BEVs).

The new R&D company, which will work on designing and developing BEVs (including platform) and its related parts, is anticipated to be established in China in 2020, with BYD and Toyota to evenly share 50% of the total capital needed.

Additionally, BYD and Toyota plan to staff the new company by transferring engineers and the jobs currently involved in related R&D from their respective companies.

On the establishment of the new company, BYD senior vice president Lian Yu-bo said:

“We aim to combine BYD’s strengths in development and competitiveness in the battery electric vehicle market with Toyota’s quality and safety technology to provide the best BEV products for the market demand and consumer affection as early as we can.”

Toyota executive vice president Shigeki Terashi commented:

“With the same goal to further promote the widespread use of electrified vehicles, we appreciate that BYD and Toyota can become “teammates”, able to put aside our rivalry and collaborate. We hope to further advance and expand both BYD and Toyota from the efforts of the new company with BYD.”

BYD was founded in 1995 as a battery business and has grown into a total energy solution company, manufacturing not only electrified vehicles but other products such as large-size energy storage cells. The company name BYD stands for “Build Your Dreams” and core parts for electrified vehicles such as batteries, motors and power electronics are among the products that BYD develops in-house. In 2008, BYD became the first company in the world to sell mass production of plug-in hybrid electrified vehicles (PHEVs).

Since 2015 onwards, BYD’s sales of BEVs and PHEVs have been ranked first in the world for four consecutive years.

Since Toyota launched the Prius, the world’s first mass-produced hybrid electric vehicle (HEV), in 1997, the company has become a pioneer of electrified vehicle development with a focus on HEVs. Toyota has sold more than 14 million electrified vehicles worldwide and has accumulated extensive knowledge concerning the development, production, and sale of both HEVs and their related core components. Also, based on the thinking that electrified vehicles contribute to the society only when its popularized, Toyota is initiating electrification globally. In China, Toyota is also working on spreading electrification and also developing vehicles which meets Chinese customer’s needs in collaboration between Toyota Motor Engineering & Manufacturing (China) Co., Ltd. (TMEC) and the R&D centers established at Chinese joint-venture companies with China FAW Group Corporation (FAW) and Guangzhou Automobile Group Co., Ltd (GAC).

With the newly established joint R&D company, Toyota and BYD aim to work together to further develop BEVs that are attractive to Chinese customers, and by further promoting their widespread adoption, aim to contribute toward environmental improvement.

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.

Categories
Minority Stock Positions Stock Portfolio

BYD Lands Mega Order from Los Angeles Department of Transportation

(BRK.A), (BRK.B)

New energy company BYD (Build Your Dreams) has announced that the Los Angeles Department of Transportation has ordered 130 of its battery-electric K7M buses.

The order is the largest single purchase of battery-electric buses to date in the United States.

The order is a major milestone for BYD as it continues its green dream to bring innovation and cutting-edge zero-emission technologies to forward-thinking communities and private enterprises. LADOT purchase is a signal to the market that zero-emission buses are here to stay and that their use will continue to spread.

The project fits perfectly with the City of Los Angeles’ “Green New Deal,” a set of sustainability goals that includes converting the entire LADOT fleet to zero-emission buses by 2030. The City of Los Angeles has set a bold goal of converting every city vehicle to zero-emission technology by 2050.

It is estimated the 130 buses will reduce greenhouse gas emissions by 8,225 metric tons per year and by 98,700 metric tons over the buses’ 12-year life, reducing greenhouse gas emissions by 81% compared to LADOT’s compressed natural gas buses.

“We applauded LADOT for its bold leadership, ambition, and desire to improve the air quality for the City of Los Angeles,” said BYD North America President Stella Li. “BYD buses will be an important component of the city’s efforts to meet its sustainability goals. We are proud to partner with an agency that shares our green dream.”

The buses will be built at BYD’s Coach & Bus factory in Lancaster, California. BYD’s zero-emission buses not only meet but also exceed Federal Transit Administration “Buy America” requirements, incorporating more than 70% U.S. content.

BYD is the only 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.

The 30-foot K7M has 22 seats, a range of up to 150 miles, and can be charged in 2.5 to 3 hours. The K7M is one of BYD’s top products. It has no air emissions and runs quietly, improving quality of life wherever it operates. With lower fuel and maintenance costs, the K7M has lower total cost of ownership than diesel or CNG.

BYD notes that it offers a 12-year warranty on its batteries, the longest in the industry.

LADOT has been working with BYD since 2014 when it conducted a 90-day trial of a battery-electric bus. In January 2017, city officials introduced the first of four K9S battery-electric buses acquired by the LADOT with a grant from the California Energy Commission.

LADOT is one of more than a dozen customers who have shown their confidence in BYD’s product performance and service to make additional orders. Earlier this year, Anaheim Resort Transportation added to its initial purchase by ordering 40 more buses from BYD. With this purchase, BYD has now sold more than 460 electric buses to customers in Southern California including airports, universities, private operators and transit agencies.

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.