#BYD

It used to be a common joke in China that makers of refrigerators entered the car business by adding wheels to their refrigerators. (Don’t laugh: GM sold their Frigidaire business in 1979, after 50 years of making refrigerators.) Now, BYD comes full circle. They will enter the home appliance business.

Ah, there’s nothing like a good old Chinese catfight over a foreign joint venture partner. Daimler’s Chinese partner BAIC (they build the E-Class and C-Class in Beijing) became increasingly green-eyed watching Daimler playing footsie with up-start BYD. Now, BAIC is throwing a fit.

Gasgoo says that BAIC might withdraw from or delay its planned acquisition of Fujian Daimler, and this could frustrate Daimler’s partnership with BYD. Why is that?

Got a nice empty property in an industrial park in Germany? Centrally located, close to a major airport like Frankfurt, or Munich would be a plus? Then we know some Chinese you may want to talk to. They are in Shenzhen and work for BYD. BYD is coming to Europe. And they want to put their European HQ right into the German hornet’s nest.

China has finally revealed its worst kept secret and announced a pilot program for five Chinese cities. It’s raining cash for buyers of electric vehicles and plug-in hybrids. And it “reflects Beijing’s resolve to foster domestic brands,” says Reuters.

Really? At first glance, there is no discrimination against laowei cars.

Someone is in a big hurry: In March, Daimler and BYD signed an agreement to develop an all electric vehicle “specific to the requirements of the Chinese market.” Usually, it takes a while until something comes from these announcements, especially in China, where everything needs a lot of big red chops. Much to our surprise, we hear that BYD and Daimler signed the contract today to form a 50:50 joint venture for the aforementioned purpose.

You are probably going batty awaiting the American arrival of the all electric Made in China BYD e6. Fret no more: It’s coming! BYD will start selling the plug-in e6 in the U.S. “in 2010,” writes People’s Daily. The price? “Around 40,000 U.S. dollars.”

Thank you, God, or make that Uzume, for keeping me alive long enough so that I can announce this: The Governator himself, that Austrian incarnate of Red, White, Blue, Mom & Apple Pie, has received a starring role in China’s Xinhua newswire:

“California Governor Arnold Schwarzenegger announced on Friday that Chinese manufacturer BYD Auto Company Limited (BYD) will locate its North American headquarters in Los Angeles.”

As my revered colleagues at China Car Times rightly remark, “March is the first full month of car sales after the Chinese New Year where the majority of dealerships are closed for around two weeks, thus stunting growth of that month, but March is always a very busy month with many customers flush with cash after the New Year.” That’s why everybody who knows the Chinese car industry has a sharp eye on the March numbers. And that’s why everybody gasped when total vehicle sales in China climbed 55.79 percent from March a year earlier. Something else happened. A revolution.

Nearly everything ever written about BYD in the Western press has focused on the Chinese automaker’s hybrid or electric drivetrains, or the firms and investors who have bought into their future promise. It’s an understandable state of affairs: after all, the firm started life as a cell phone battery maker, providing OEM cells for firms like Nokia. Meanwhile, BYD sold nearly a half-million cars in China last year, all gas powered, doubling both sales and profit over 2008 levels. And with plans for a pure EV now on hold, BYD is going back to basics, readying a range of new, allegedly more upscale, gas-powered cars for the Beijing Auto Show later this month.

Yesterday, Chinese site auto.sina.com had what our Ed Niedermeyer called “a belly-laugher of a wild-ass rumor: they say BYD has its eye on Daimler’s zombie luxury brand Maybach.” Funny as it may be, media all over the world jumped on the story. Now, the story is heading right to Snopes. After what must have been a round of heated phone calls between Stuttgart and Shenzhen, Daimler denounced the dumb-ass tale:

Chinese site auto.sina.com [via thetycho.com] has a belly-laugher of a wild-ass rumor: they say BYD has its eye on Daimler’s zombie luxury brand Maybach. The rumor is clearly based on the fact that BYD and Daimler recently closed a cooperation deal, in which they will jointly build vehicles in China for sale under a new brand name. But beyond that, there’s not much to go on. From what I can tell from the Google Translate version of the story, auto.sina.com seems to have an anonymous source in BYD that on March 23 divulged:

BYD is on the matter and approached Daimler, Daimler announced soon abandoned the brand, BYD Auto will soon be underway acquisition action.

A week ago, we ran a story about China’s BYD scaling back – way back – plans to mass produce their E6 pure plug-in. We reported that all they’ll make will be 100 E6 electric cars to be used as taxis in the city of Shenzhen, where BYD is based. Further development of the vehicles will depend on how that test fleet will be doing. At the time, it was only a rumor. Now, the rumor has been confirmed by the BYD man himself, Chairman Wang Chuanfu.

Wonder how a formerly little known company called BYD can turn into a major player in the auto business and turn a record profit? Here is one of the reasons: BYD “has scrapped its highly publicized plan to mass-produce pure electric cars on the mainland by the middle of this year,” writes Hong Kong’s South China Morning Post.

All they’ll make will be 100 E6 electric cars to be used as taxis in the city of Shenzhen, where BYD is based. Further development of the vehicles will depend on how that test fleet will be doing. Now that is one way to delay production.

Chinese battery maker and aspiring automaker BYD earned $215m in the fourth quarter of 2009, bringing its net profit for last year to $555.2m, reports Automotive News [sub]. BYD’s performance outstripped analyst estimates, which projected fourth quarter profits of $130.5m, and full-year profits of $473.2m. Though the Chinese auto market grew 46 percent to 1.6m vehicles, 47 percent of BYD’s 2009 sales came from the firm’s cell phone battery business, which is expected to give back recent gains as the global economic crisis takes its toll. Not so with BYD’s auto business: the firm has raised its 2010 car sales projections 14 percent, with sales of 800k foreseen. And as China’s car market takes off, BYD, which has one of the nation’s best-selling cars in its F3 compact, is expected to keep growing. Says one JP Morgan analyst:

BYD is a company that can’t be underestimated. If the Chinese vehicle market expands 10 percent this year BYD’s sales will grow at least 40 percent — 50 or even 60 percent is also a possibility.

Even since Landwind crash test, and the Brilliance crash test, the reputation of Chinese cars in Europe has been a little, shall we say, challenging. Watching the bonnet of a car crumble like Professor Gilbert’s theory on Toyota’s UA tofu does have its effect on prospective customers.

But none of this seems to worry BYD. Europe is their next target. Autocar reports that BYD, the maker of China’s biggest selling car, the F3, will be coming to Europe in 2011. Not with their bestselling F3, but with a pure electric E6. The car was introduced at the Geneva Motor Show.