WOLFSBURG, Germany — Volkswagen and China's BYD Auto will "explore options" to cooperate on development of hybrid and electric vehicles based on BYD's lithium-ion battery technology, the two companies said.
VW and BYD signed a memorandum of understanding during a visit last week by BYD Chairman Wang Chuanfu to VW's headquarters in Wolfsburg and its EV Technology Center in Isenbuettel.
A VW statement said Wang test-drove a prototype EV and participated in technical discussions with VW management, including Chairman Martin Winterkorn.
Dr. Ulrich Hackenberg, VW's head of technical development, said that "hybrids and electric vehicles will play an increasingly important role" in VW's future. "Particularly for the Chinese market, potential partners such as BYD could support us in quickly expanding our activities," he said.
Earlier this year, BYD displayed its latest battery technology at the 2009 Detroit Auto Show, along with such vehicles as the compact F3DM plug-in hybrid sedan and the pure-electric e6 crossover, which is slated to go into production in China later this year.
Last week, German automaker Daimler bought a 10 percent stake in Tesla Motors, the California-based maker of high-end electric vehicles.
Inside Line says: First with Warren Buffett, now with VW, BYD is running in some fast company lately. — Anita Lienert, Correspondent
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