BYD to sell electric car in U.S. market next year

BYD Co., the Chinese auto maker part-owned by Warren Buffett's company, is finalizing plans for an all-electric battery car that would be sold in the U.S. next year, ahead of the original schedule, Chairman Wang Chuanfu said.

In an interview at a BYD factory here, Mr. Wang said the company aims to use money from a planned new-share sale in China to help pay for the U.S. push, as well as for a second production line for automotive lithium-ion batteries near BYD's Shenzhen headquarters.

He said BYD wants to build up its brand name in the U.S. by offering one of its most advanced cars, the five-seat e6, before eventually expanding its offerings.

Mr. Wang said the company plans to pick a specific region within the U.S. and initially market "a few hundred" e6s, priced at slightly more than $40,000, through a small number of dealers. "In the beginning, our target customers are going to be government agencies, utilities and maybe some celebrities," Mr. Wang said. He added that BYD hopes to enter Europe with a similar strategy in 2011 or later.

BYD, which lists shares in Hong Kong, plans to sell up to 100 million new shares in mainland China ahead of a listing on the Shenzhen Stock Exchange as early as next year. The offering, which still needs government approval, could raise up to $500 million based on current prices.

One source of Mr. Wang's confidence in attacking the U.S. car market is BYD's ties with MidAmerican Energy Holding Co., the unit of Mr. Buffett's Berkshire Hathaway Inc. that paid about $230 million for a 9.9% stake in BYD.

MidAmerican Chairman David Sokol, who was also interviewed in Xian, said MidAmerican is ready to assist BYD's foray into the U.S. auto market in "any way we could be helpful." MidAmerican also might invest in BYD's new initiatives in the U.S., which, in addition to automobiles, could involve solar panels and battery technology for power utilities.

Mr. Sokol also said MidAmerican hopes to boost its BYD stake if the chance arises. "If in the future there is an opportunity for us to continue to invest in BYD, we will be happy to increase our stake over time, but we will do it in cooperation with BYD," he said. Mr. Wang said an increase is "negotiable."

The BYD e6 is a five-seat electric-powered passenger car. The company says it takes about seven to nine hours to fully charge when plugged into a regular home outlet. BYD already sells a plug-in hybrid car with a small gasoline engine to charge batteries that is called the F3DM. BYD began selling it late last year to fleet customers but has since failed to make it available for consumers. Some analysts have speculated that problems with the car's lithium-ion-battery technology might have dogged the car.

Mr. Wang tried to dispel the criticism, saying the delay is because BYD is waiting for government incentives for private buyers in China to buy "new energy cars."