BYD to build electric buses in California
BYD Co., the Chinese automaker partially owned by Warren Buffett's Berkshire Hathaway Inc., is preparing to make electric buses in California as the company seeks to bolster its visibility in the United States.
The company will open facilities in Lancaster, California, on May 1 that will assemble electric buses, said Marketing Director Sherry Li. BYD's K9, which is 12 meters long, has a range of 249 kilometers when fully charged, according to the company.
U.S. production may help BYD, which has had three consecutive annual profit declines, to capitalize on Buy America government provisions that subsidize purchases of U.S.-made products for public transportation projects. Efforts to expand in the U.S. have yet to bear fruit, with revenue in the country accounting for less than 2 percent of its total last year.
"It certainly allows them an opportunity to penetrate into the U.S. market, especially in California, where electric buses
are very popular," said Rebecca Lindland, an automotive consultant with Rebel Three Media & Consultants in Cos Cob,
Connecticut. "While strategically it's a very positive move, it's very high risk as they don't have a contract. If they don't
have a contract, it's certainly a very risky proposition."
Outside China
BYD, based in Shenzhen, is betting on public transportation to boost its electric-vehicle business, though mainly in China. As of last year, 200 of the company's K9s and 800 of its e6 electric taxis were running on Shenzhen's roads, according to the company. BYD also has K9 and e6 vehicles in trial operations in Changsha, Xi'an, Shaoguan and Baoji as part of a goal to have its vehicles nationwide.
Outside China, BYD's K9 bus is running trials in the U.S., Spain, Hungary, Austria, Belgium and the Netherlands. It
has won orders from the Netherlands, Israel, Uruguay, Colombia and Canada. In January, BYD received approvals to sell its electric buses without any restriction in European Union countries, according to the company.
The Wall Street Journal earlier reported on BYD's plans to begin assembling electric buses in the U.S.
U.S. production may help BYD, which has had three consecutive annual profit declines, to capitalize on Buy America government provisions that subsidize purchases of U.S.-made products for public transportation projects. Efforts to expand in the U.S. have yet to bear fruit, with revenue in the country accounting for less than 2 percent of its total last year.
"It certainly allows them an opportunity to penetrate into the U.S. market, especially in California, where electric buses
are very popular," said Rebecca Lindland, an automotive consultant with Rebel Three Media & Consultants in Cos Cob,
Connecticut. "While strategically it's a very positive move, it's very high risk as they don't have a contract. If they don't
have a contract, it's certainly a very risky proposition."
Outside China
BYD, based in Shenzhen, is betting on public transportation to boost its electric-vehicle business, though mainly in China. As of last year, 200 of the company's K9s and 800 of its e6 electric taxis were running on Shenzhen's roads, according to the company. BYD also has K9 and e6 vehicles in trial operations in Changsha, Xi'an, Shaoguan and Baoji as part of a goal to have its vehicles nationwide.
Outside China, BYD's K9 bus is running trials in the U.S., Spain, Hungary, Austria, Belgium and the Netherlands. It
has won orders from the Netherlands, Israel, Uruguay, Colombia and Canada. In January, BYD received approvals to sell its electric buses without any restriction in European Union countries, according to the company.
The Wall Street Journal earlier reported on BYD's plans to begin assembling electric buses in the U.S.
