China Looks to Enter U.S. Electric Car Market
Coming a year earlier than first anticipated, BYD, a Chinese company most known for its rechargable batteries, plans on entering the U.S. market for electric cars. By next year, BYD plans on providing the e6, its all electric sedan to the American public, something that surprised a lot of analysts. This comes at the same time that Chevrolet will be unleashing its Volt. The primary difference between the two is that the e6 will be much cheaper than the Volt.
It’s apparent with gas prices constantly fluctuating that there is a parched public waiting for a mass-marketed electric car that can save tremendous amounts of money on fueling it, but more importantly, provide a sound response to the environmental problems caused by fossil fuels.
Signs that BYD plans to be in the business for good rest in two key details. The first is that their vehicle is so much more reasonable due to the cost of the battery. Unlike other companies where the batteries cost so much more to make, BYD hires hundreds and thousands of laborers to create their batteries that cuts down on the price of the battery. This savings, in turn, is passed on to the consumer.
Secondly, Warren Buffet has already signed on with the purchase of 10% of BYD and is looking to expand that stake with his MidAmerican Energy Holdings company. Warren Buffet is known throughout the world as a safe investor. Wang Chuan-Fu told Reuters, “MidAmerican has always intended to raise its stake in BYD because it believes BYD has good prospects in the development of renewable energy, but we are still considering (whether to sell more).” Whether they sell or not is still undetermined.
By taking Buffet’s name and developing an inexpensive electric car, BYD has made a bold statement in entering the U.S. market. Whether or not the company finds success, though, is another story. What is known, though, is the fact that there are nearly one hundred car companies in China vying to be one of seven. BYD, with this success, could be one of those.