China's BYD hopes for turnaround with Si Rui sedan

Associated Press (Guangzhou) - Chinese automaker BYD Co. may be hoping that Si Rui (pronounced suh-ray), the name for its new midsize sedan, translates into turnaround. The ailing company, which counts billionaire Warren Buffett as an investor, is banking on the new model to help spur a revival in sales.

The car, which made its debut at the Guangzhou auto show this week in southern China, is a follow up to the bestselling F3. That model was hugely popular with buyers in China partly thanks to now-discontinued government subsidies.

But the company's incoherent business strategy means it was an isolated success. BYD, which also makes rechargeable batteries and mobile phone handsets, was aggressive with its expansion into electric cars as Beijing announced the goal of making China a global power in electric car manufacturing. But the bet failed to pay off because of a lack of buyer interest and technological hurdles.

BYD and other Chinese carmakers have also been squeezed by growing numbers of foreign brands entering China's fast-growing auto market, the world's biggest. BYD is hoping the Si Rui can help the company stand out against numerous other direct competitors in the hugely competitive smaller midsize slice of the market, which ranges from Geely's Emgrand line to the Volkswagen Santana and Citroen Elysee.