Warren Buffett reaffirms his support for BYD after stock drops
An endorsement from Warren Buffett is as close to a gold-seal of approval as their is in the investment world, and that is just what Chinese automaker BYD Co. has recently been adorned with. Buffett, whose company Berkshire Hathaway Inc., which owns a stake in BYD, said on a recent visit to China that “BYD is a young and promising company experiencing dynamic growth,”. He also added that “BYD will play a leading role in the future.”
Buffett”s statement comes after concerns that BYD would fail to meet a schedule for delivering cars to California, due in part to a 19% sales drop in August. Stock in the company, which fell 19% in the last year, spiked 4.3% today after the company said it has signed 30 dealers to market and sell the F3DM plug-in hybrid in 20 Chinese cities. The company has plans to sell its E6 electric car in the U.S. this year, and in Europe next year.
The company is heavily banking on its plug-in and hybrid vehicles as GM and Nissan expand into the Chinese market, which is flush with buyer incentives for fuel-efficient vehicles to help cut pollution in the world”s most polluted country. To expand upon its clean energy platform, the company announced separately, that it plans to build an energy storage facility with China Southern Power Grid Co. to expand its energy business.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)
