China's BYD Auto plans to sell pricey, not budget, vehicles in the United States in 2011.

 

The F6DM plug-in hybrid sedan will sell for "less than $30,000 (205,365 yuan)," Chairman Wang Chuanfu told Automotive News China here at the Detroit auto show. The E6 electric van will be priced between $30,000 and $40,000 (205,365 and 273,820 yuan),  he says.

 

Many questions are unanswered, however. The cars' batteries use a lithium iron phosphate chemistry developed by BYD. Wang says the battery has been tested in China, but the results have not been made public.

 

"The Chinese government has given us permission to sell it," which is proof that it is ready for consumers, says Wang.

 

But the cars have not passed federal strict safety and emissions tests for the U.S. market.

 

"The most difficult issue could be certification" for sale here, Wang acknowledges.

 

No dealership network exists for the cars; BYD is still evaluating how to distribute the cars, says Wang.

 

Sales volume for the two models depends on what incentives are in place in the United States for alternative fuel vehicles, says Wang.

 

U.S. investor Warren Buffett invested $230 million in BYD in September. That money is being used for alternative fuel product development, says Wang.  BYD is also consulting Buffett on various issues, including dealers and distribution in the United States, he says.

 

In December, BYD began selling the F3DM plug in hybrid in China. The car is pricey at 149,800 yuan ($21,913). BYD has sold only a few hundred, all to government agencies.

 

The high price is due to low-volume production, says Wang. Higher volumes -- and lower prices -- await government incentives, he says.

 

For comparison, the Ford Focus, an inexpensive small car for American families, starts at $15,690 (107,406  yuan) in the United States.