Tag: BYD Co

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BYD Profits Surge as Electric Vehicle Sales Soar

(BRK.A), (BRK.B)

BYD Company Limited, the Chinese battery and vehicle-maker that is 9% owned by Berkshire Hathaway, saw its net profits in 2015 grow a dramatic 550% to 2.82 billion yuan ($431 million).

The growth comes as BYD took over the number one position as the world’s top selling EV manufacturer.

BYD was only ranked seventh in 2014, and its position as the global leader comes while it has yet to retail its EV cars in the United States.

BYD’s success is due in part to the popularity of its Qin sedan and Tang SUV in China, and on the growing sales of its pure-electric buses, not only in China, but around the world.

BYD has pure-electric bus 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.

On the auto front, the company will introduce two new models in 2016, the SUVs Song and Yuan.

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 9.1% of the company.

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.

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Minority Stock Positions Stock Portfolio

BYD Debuts 15-Meter Pure Electric Bus in Brazil

(BRK.A), (BRK.B)

Electric bus manufacturer BYD Co. Ltd, which makes pure electric buses in sizes big and small, has debuted its biggest one yet, a 15-meter bus now in service in São Paulo, Brazil.

The bus, model K10A, is a public transit bus designed for urban settings, and has its batteries stored in the floor of the vehicle.

In addition to the K10A, BYD makes a wide range of pure electric transit buses, including the K7 (8 meters), the K9 (12 meters) and the K11 (18 meters).

According to BYD, the K10A carries up to 95 passengers, has five doors and also relies on the proprietary technology of the BYD Iron-Phosphate Battery, a fire-safe, long-cycle and extended lifetime battery which is totally clean and recyclable. The battery pack enables the K10A to achieve a driving range of around 265 km on a single charge, making the bus capable of covering most of the public transportation routes in Brazil.

The batteries feature a 6,000-cycle lifespan and guarantee of over 15 years of operation. Just like the other BYD buses in Brazil, the K10A features regenerative braking and highly efficient in-wheel motors, making it possible for the bus floor to be lower, greatly simplifying maintenance and significantly reducing operational costs.

São Paulo already has a BYD K9 bus run by Ambiental transport operators.

Berkshire and BYD

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 9.1% of the company.

At the time, Warren Buffett said: “”We are thrilled to be partners with BYD and the people of China. Mr. Wang Chuanfu has an extraordinary managerial record, and we welcome the opportunity to work with him.”

The move has certainly worked out well for Berkshire, as BYD’s electric buses have been hot sellers not only in China, but around the world.

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.

BYD’s electric car business is booming as well, and it is now the number one seller of electric cars worldwide with 11% of the market share.

Berkshire’s stake in BYD is worth roughly $12.3 billion.

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.

Categories
Minority Stock Positions

BYD’s 300 Electric Buses Just the Start for Chinese City of Shanwei

(BRK.A), (BRK.B)

With air pollution in China making headlines almost daily, BYD Co. Ltd., the Chinese battery and vehicle-maker that is 9% owned by Berkshire Hathaway, is providing 300 pure electric buses to the Chinese city of Shanwei, in Guangdong Province. The electric buses are the first of what could be thousands for the city in the next three years.

BYD will be gradually adding the buses to the city’s public transportation fleet as the city sets ambitious goals for electric bus transportation for the city’s 409,000 population.

According to BYD, the city is purchasing the BYD K7, an 8-meter, 23-seat pure electric bus running on BYD’s proprietary Iron-Phosphate batteries, which give it a driving range of up to 240km on a single charge.

The battery packs are placed on the roof and floor, making it quite spacious inside. It also features in-wheel motors, which saves a lot in terms of maintenance costs, as well as one-button-start system and continuously variable transmission. The company touts the model as ideal for urban transit or as an airport shuttle.

Not Hundreds of Buses, Thousands

The city of Shanwei plans to have 1,810 pure electric buses in service by the end of 2017. Additionally, 1,200 units of 6-to-8-meter new energy buses will be used as short-distance transit buses in urban areas and shuttle buses in suburban areas between 2017 and 2019.

By 2019, the city of Shanwei will have a total of 3,010 pure electric buses in operation. It is the first city in China to make large-scale use of the BYD K7.

Berkshire and BYD

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 9.1% of the company.

At the time, Warren Buffett said: “”We are thrilled to be partners with BYD and the people of China. Mr. Wang Chuanfu has an extraordinary managerial record, and we welcome the opportunity to work with him.”

The move has certainly worked out well for Berkshire, as BYD’s electric buses have been hot sellers not only in China, but around the world.

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.

BYD’s electric car business is booming as well, and it is now the number one seller of electric cars worldwide.

Berkshire’s stake in BYD is worth roughly $1.77 billion.

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.

Categories
Minority Stock Positions Stock Portfolio

BYD Moves into First Place in Worldwide EV Sales

(BRK.A), (BRK.B)

The headlights flashing to pass you on the autobahn just might be coming from an EV built by BYD Company Ltd.

Chinese auto and battery-maker BYD Company Ltd has zoomed into the number one position as the world’s top selling EV manufacturer.

Nissan, Mitsubishi, Tesla, Volkswagen and BMW rounded out the top five, in that order.

BYD Co Ltd, which Berkshire Hathaway holds a minority stake in of nearly 10%, sold 6,099 pure electric cars in October 2015, which was almost double the 3,115 sold by second-place Nissan.

The Winner Month After Month

BYD’s first-place finish in October was the sixth consecutive month since May that it has led worldwide EV sales figures. The company has an eleven-percent market share of the total EV market.

BYD’s success is due to the popularity of its Qin sedan and Tang SUV. The company will introduce two new models, the SUVs Song and Yuan, in 2016.

BYD’s rise to the top is dramatic, as it was only ranked seventh in 2014, and it’s sure to continue to grow, as the company has yet to retail its EV cars in the United States.

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 10% of the company.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2015 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

BYD Number One in Electric Vehicles in August

(BRK.A), (BRK.B)

While everyone watches Tesla and Nissan to get the pulse of EV car sales, Chinese car-maker BYD is quietly topping their world-wide sales figures month after month.

BYD Co Ltd, which Berkshire Hathaway holds a minority stake in of nearly 10%, sold 5,307 pure electric cars in August 2015. The sales substantially topped both Tesla and Nissan, which had sales of 2,805 and 3,405 respectively.

The August win meant that the company beat Tesla’s and Nissan’s sales figures for the top EV manufacturer for the fourth month in a row.

For the year to date, BYD is in second place behind Nissan and ahead of Tesla.

Multiple Models

BYD’s Qin and Tang models make the company the only automaker to have two models in the top ten. The Qin ranks number one and the Tang is number eight, and  BYD will be adding two SUV models, the Song and Yuan, to the product lineup as well.

BYD’s marketing strategy has seen it make inroads across the globe, and it currently has buses and taxis running in over 160 cities in 36 countries.

BYD, which is the world-leader in rechargeable batteries, has yet to enter the U.S. car market with either its all-electric or hybrid vehicles. In the U.S., the company has focused on the battery-powered zero emission bus market, winning contracts in San Diego and Long Beach, California, and in Colorado, Oregon and Washington. The company has built a factory to assemble the buses in Long Beach.

However, BYD is inching toward U.S. car sales. In the spring of 2015 it began a pilot program with Uber in Chicago that used BYDs E6 sedan. The car is a cross between a sedan and SUV, and currently gets roughly 186 miles (300 km) of driving range per charge. The 2016 E6 will reportedly get a range increase to 250 miles (400 km).

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2015 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 Solar Signs Major Deal for Middle-East Luxury Hotels

(BRK.A), (BRK.B)

BYD Co. Ltd., the Chinese battery and vehicle-maker that is 10% owned by Berkshire Hathaway, has signed a deal in Jordan to provide polycrystalline solar photovoltaic modules for the largest private photovoltaic project in the Middle-East country. The project will supply electricity to a number of luxury hotels.

Partnering with Phoenix Solar, BYD will build three power plants that will supply all the electricity needs of Arab International Hotels, plc (owner of Marriott Amman), Al Dawliyah Hotels & Malls, plc (owner of Sheraton Amman) and Business Tourism Company (owner of Marriott Dead Sea and Marriott Petra).

The goal of the solar project is to reduce to zero the carbon impact of power generation, eliminating 10.7 million kilograms of CO2 emissions per year that would ordinarily be produced through burning fossil fuels.

Phoenix Solar will handle the engineering, procurement and project management. The solar plants will be built in the Mwaqqar and Damikhi/Qatraneh areas, connecting to the electrical networks Jordan Electric Power Co, plc and Electric Distribution Company, plc.

“This project is a milestone in pursuing our ambitious environment targets of zero CO2 emissions,” said Bassam Maayeh, Managing Director of Arab International Hotels, and spokesman for the consortium of hotels involved.

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 9.1% of the company.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2015 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

Sudan First African Country for BYD

(BRK.A), (BRK.B)

BYD Co. Ltd., the Chinese battery and vehicle-maker that is 10% owned by Berkshire Hathaway, has reached a deal to sell 10,000 vehicles to Sudan’s state-run company GIAD Motor Co Ltd.

The cars will include both hybrid and traditional gasoline-powered vehicles, and the deal represents the company’s first major order in Africa.

The vehicles’ power systems and key components will be built in China and the cars will be assembled in Sudan. BYD has assembly plants for gas-powered cars in Sudan and Egypt.

BYD’s Sudanese partner, Giad Motor Co. Ltd., is a subsidiary of Sudan’s Giad Group, the only corporation with a license to produce vehicles in the country, as well as its largest state-owned company.

BYD’s Sale on the Rise

Despite recent turmoil in the China’s stock markets, BYD has had a strong year for global sales.

BYD’s revenues are up 21% to 30.4 billion yuan ($4.75 billion) for the first six months of 2015. Gross profits were up 21.4% for the same period at 4.6 billion yuan with car sales up 14% to 210,000 units.

Berkshire and BYD

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 9.1% of the company.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2015 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

BYD Scores Massive Bus Order from Washington State

(BRK.A), (BRK.B)

In what it is touting as “America’s Largest Electric Bus Order,” BYD Co. Ltd., the Chinese battery and vehicle-maker that is 10% owned by Berkshire Hathaway, has scored a massive order from the state of Washington.

BYD has won a contract from the Washington State Department of Transportation (WSDOT) for up to 800 heavy duty buses from all different propulsion types that includes 12 different categories for all-electric buses.

The company won contracts in 10 of the 12 available vehicle categories of WSDOT’s RFP, and says it has the ability to deliver any of their buses within six months.

The contract includes buses from 30 – 60 feet in length for both highway and transit applications, as well as long-range and shorter range on-route charging configurations.

BYD is the only company world-wide that manufactures 7 different all-electric buses capable of long range as well as in-route charging configurations.

The company notes that its buses can drive for more than 155 miles even in heavy city traffic on a single charge, and BYD will also supply wireless on route charging as an option approved by WSDOT.

The buses use BYD’s Iron-Phosphate battery which has a 12-year-battery warranty, and use the company’s proprietary in-wheel hub motors and regenerative braking system.

Single RFP Process Speeds Procurement

The single WSDOT RFP speeds procurement, and the buses will serve public transportation systems in the states of Washington and Oregon without their having to go through a separate RFP.

Any transit agency or public institution in the states of Washington and Oregon is now able to procure electric buses using the RFP.

“Our staff has spent the past few years researching every electric bus on the market,” said WSDOT’s David Chenaur, Capital Programs Manager, “and after rigorous evaluations of each manufacturer and their products we believe we have given our transit authorities the very best electric buses in each vehicle category to build their fleet with.”

BYD’s subsidiary BYD Motors will build the buses at its plant in Lancaster, California.

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 9.1% of the company.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2015 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

Denver the Latest City for BYD’s Pure-Electric Buses

(BRK.A), (BRK.B)

There was a time when cities were very pleased with adding hybrid buses to reduce emissions from smoky diesel buses. These days, the mantra is zero-emissions, as cities work to meet tougher pollution and climate change goals. These goals benefit BYD Co. Ltd, the Chinese company that is a world-leader in rechargeable batteries, and maker of pure-electric and traditional fuel vehicles.

The company, which is partially-owned by Berkshire Hathaway, continues to make inroads in the U.S. market with its all-electric buses.

In Denver, Colorado, the Regional Transportation District (RTD) has approved the purchase of 36 of BYD’s 45-foot pure-electric buses for its 16th Street Mall shuttle, which is the RTD’s busiest bus route.

The buses replace a more than decade-old fleet of hybrid buses, which are aging out of service. The new buses will eliminate emissions on the heavily travelled route.

The RTS is spending $27.1 million to purchase the buses, which will have a 12-year lifespan.

BYD has been begun assembling its buses for the U.S. market in a plant it opened in Long Beach, California. The company is already making pure-electric buses for Long Beach’s transportation system.

In 2008, Berkshire Hathaway bet on BYD’s potential and purchased 225 million shares, and today owns roughly 10% of the company.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2015 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

BYD a Willing Partner

(BRK.A), (BRK.B)

Berkshire Hathaway’s roughly 10% ownership in BYD Company Limited, the Chinese automobile and new energy company that is the largest supplier of rechargeable batteries in the world, makes the company especially worth watching for Berkshire shareholders.

In 2008, Berkshire Hathaway placed a major bet on BYD’s potential when it purchased 225 million shares, and the company has not disappointed as it has aggressively moved into new markets.

A Willing Partner

While Tesla has mostly gone it alone, BYD not only manufactures its own line of cars and buses, but it is willing to form manufacturing partnerships that give it entry into new markets.

The key is BYD’s electric vehicle technology that makes it an excellent partner for other manufacturers looking to meet ambitious climate change and pollution goals.

On July 27, 2015, BYD announced a joint project worth $29.6 million deal with British bus manufacturer Alexander Dennis Limited to build 51 single-deck zero-emission buses for London. The buses will utilize BYD’s chassis and electric drivetrain with the bodies supplied by ADL. The partnership helps London move towards its goal of having all single-deck buses totally emission-free by 2020.

“This combination will deliver a unique vehicle which we believe will have a strong appeal in London and elsewhere in the UK,” said Isbrand Ho, the managing director of BYD Europe.

The buses will run on two routes served by London bus operator Go-Ahead London, and are scheduled to be in service by August 2016.

“Working together with our partners and friends at ADL we can provide a truly optimized blend of expertise. Our deep experience of not only battery technology but the critical battery management systems and driveline components necessary to deliver unequaled range and reliability are matched to ADL’s strong track record in building low weight, attractive and durable buses,” Ho said.

“We are delighted to have placed this order with BYD and have every confidence that along with ADL. They will deliver the world’s most advanced, zero-emission, pure electric bus fleet, and one that will match the rigorous demands of the London operating environment. This is a considerable step towards a cleaner, greener London bus fleet,” noted Richard Harrington, engineering director of Go-Ahead London.

For More on BYD, read the Special Report: BYD, Berkshire’s Tesla.

© 2015 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.