BYD cancels plans for financial company

Gasgoo.com (Shanghai July 6) - BYD announced today it will not establish an independent finance company, China Business News reported today. The company was originally planned to be opened in cooperation with the French Compagnie Générale de Location d'Equipement (CGL). It was deemed by both sides that the Chinese automobile industry is too unstable to embark on such a venture.

BYD and CGL signed the agreement in mid-June of last year to open the new company, with both sides to invest a total of 500 million yuan ($73,317,000). BYD would undertake the majority of the financial burden and hold the controlling stake in the company. The company would provide end-user services.