Warren Buffett-backed BYD, the world’s largest maker of electric vehicles, replied yesterday to a critical article about the performance of its electric buses by saying new technology takes time to work out.
“As with any groundbreaking technology, issues do arise in manufacturing and performance,” President Stella Li said in a statement. “BYD aggressively responds and manages these issues, working with our customers and stakeholders.”
The newspaper aired criticism of the buses in an article titled: “Stalls, stops and breakdowns: Problems plague push for electric buses.”
The report comes as lower subsidies and heated competition have cut into BYD’s profits. The China-headquartered company recently warned its Jan.-June net profit may plunge as much as 83% from a year earlier. (See related story here.)
Overseas stock investors shrugged off the L.A. Times report. BYD’s shares rose by 0.4% to HK$53.20 in Hong Kong on Monday.
Wang is still worth $5 billion on the Forbes Real-Time Billionaires List today. BYD is about 8% owned by Warren Buffett’s Berkshire Hathaway.
–Follow me on Twitter @rflannerychina
