CD has been keeping an eye on developments in the
auto industry's global push to make energy-efficient vehicles and the infrastructure to support their sale.
Here's the latest: MidAmerican Energy Holdings Co., majority owned by Warren Buffett's Berkshire Hathaway Inc., just invested HK$1.8 billion ($230 million), in China's BYD Co. Ltd. BYD, which makes electric cars, rechargeable batteries, automobile products and handset components.
On Saturday, we saw congressional
approval of a $25 billion loan package aimed at helping U.S. automakers build more fuel-efficient vehicles. Just before that, General Motors Co. announced plans for a
$370 million plant to build four-cylinder engines for the Chevy Volt electric car and other models.
Joint ventures figure prominently in the push to get hybrid and other energy-efficient vehicles to market. Most recently, Sanyo Electric Co. Ltd., which controls the greatest market share for lithium-ion battery systems used in vehicles, is injecting ¥80 billion ($764 million) into a JV with Volkswagen AG, according to Yahoo! Finance, to expand production of the batteries by 2015.
We may see a lot of these vehicles coming to market in the next few years. But there remains the problem of not enough fueling stations around to make driving them really convenient. A Renault SA-Nissan Motor Co. JV is addressing that key issue as it sets up necessary
infrastructure by teaming with governments and numerous companies in numerous industries to create the stations. That JV also produces and plans to mass market cars globally by 2012. -
Baz Hiralal
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It wouldn’t surprise me if you haven’t heard anything about BYD electric car. It wouldn't be too surprising if you haven't. Despite the fervor for electric cars, the BYD electric car is made by BYD Auto, an auto-manufacturing firm in China. The F3DM, their electric model, was unveiled in December, but it hasn't been selling and, as of now, the public isn't eligible to line up personal loans to get one, as it's aimed at fleet applications. However, they do plan to vamp up to mass production, but the cost is still a bit prohibitive – coming out to about $22,000 USD. Still, let us hope that some people line up for installment loans for green vehicles like the BYD electric car.