SHANGHAI, China — Berkshire Hathaway, owned by U.S. billionaire Warren Buffett, has agreed to pay $230 million for a 10 percent stake in BYD Co., Ltd., China's largest rechargeable battery maker and the parent of BYD Auto.
Berkshire Hathaway will buy 225 million BYD shares through its MidAmerican Energy Holdings unit.
Shenzhen-based BYD, primarily engaged in making rechargeable batteries for cell phones and other portable devices, has been diversifying into auto manufacturing, including electric and hybrid vehicles.
BYD Auto made its first appearance at the annual Detroit auto show earlier this year and is expected to return to the show in January.
Established in 1995, the company introduced the E6 crossover earlier this year at the 2008 Beijing Auto Show. A dual-mode version, which could be powered by both battery and conventional fuels, will begin mass production next year in China.
The firm has said it aims to start selling gasoline-electric hybrid cars in the United States as early as 2010.
"We are extremely pleased and grateful that Berkshire Hathaway and MidAmerican will be our long-term investor and partner as we bring our electric vehicles and other environmental protection measures to the global market," BYD chairman Wang Chuanfu said in the statement.
"Wang Chuanfu has an extraordinary managerial record, and we welcome the opportunity to work with him," Buffett said in his statement.
Berkshire Hathaway has been investing heavily in companies with eco-friendly technologies as market demand surged amid higher energy prices and increased environment awareness. David Sokol, chairman of MidAmerican, said as talks on global climate change and the environment continue, the technologies being developed by BYD will be an integral part of the future.
What this means to you: With his track record of wise choices, if Buffett is buying it, that alone makes the company and its plans worthy of a second and third look. — Vivian Jin, Correspondent
Berkshire Hathaway will buy 225 million BYD shares through its MidAmerican Energy Holdings unit.
Shenzhen-based BYD, primarily engaged in making rechargeable batteries for cell phones and other portable devices, has been diversifying into auto manufacturing, including electric and hybrid vehicles.
BYD Auto made its first appearance at the annual Detroit auto show earlier this year and is expected to return to the show in January.
Established in 1995, the company introduced the E6 crossover earlier this year at the 2008 Beijing Auto Show. A dual-mode version, which could be powered by both battery and conventional fuels, will begin mass production next year in China.
The firm has said it aims to start selling gasoline-electric hybrid cars in the United States as early as 2010.
"We are extremely pleased and grateful that Berkshire Hathaway and MidAmerican will be our long-term investor and partner as we bring our electric vehicles and other environmental protection measures to the global market," BYD chairman Wang Chuanfu said in the statement.
"Wang Chuanfu has an extraordinary managerial record, and we welcome the opportunity to work with him," Buffett said in his statement.
Berkshire Hathaway has been investing heavily in companies with eco-friendly technologies as market demand surged amid higher energy prices and increased environment awareness. David Sokol, chairman of MidAmerican, said as talks on global climate change and the environment continue, the technologies being developed by BYD will be an integral part of the future.
What this means to you: With his track record of wise choices, if Buffett is buying it, that alone makes the company and its plans worthy of a second and third look. — Vivian Jin, Correspondent
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