Buffett's China Car Project Drives Into Trouble
Bloomberg calculated the earnings numbers based on the BYD financial release. BYD units sales dropped 25% in September to 33,085.
The company has been little more than trouble to Berkshire Hathaway (BRK.B), Warren Buffett's holding company, which owns 10% of BYD. One bright spot is that Daimler recently said it was close to a joint venture to build electric cars with BYD. But the deal has not been sealed. If the agreement advances, the German and Chinese companies would each put $90 million into the project. LDK Solar (LDK) also announced that it would buy polysilicon products from BYD in a transaction that could be worth $300 million.
Chinese car sales rose 19.3% in September and 36.7% for the first nine months of 2010 to 9.9 million units. As for now, BYD is moving in reverse in its home market.