No, not one of the Big Three. Not Tesla, either, although I
think it might be a great investment when it issues its IPO, which
has been delayed due to the recession.
Mr. Buffett invested $250 million dollars in a little company
called BYD, a Chinese auto maker. It was a battery maker until it figured out that its battery technology was vastly superior to anything that the current auto industry was using. http://www.byd.com/news/newsmore.asp?id=50&show=media
Its 2010 model will be an all-electric model which can travel
nearly 300 miles on a charge, will charge enough to travel 150
miles in just 10 minutes, and has a top end of about 100 miles per
hour. It is expected to sell for less than $20,000 in China. One
neat thing: as opposed to the expected battery life of three years
or 36,000 miles for the Volt, the BYD 3e boasts a battery life of
over 400,000 miles.
http://www.byd.com/tech/F3etech.asp?show=t1&color=a
But that's next year. They are currently going into
production, THIS MONTH, with a plug-in gas/electric hybrid similar
to the Volt, but with approximately twice the range, at 100
miles, which will be able to charge enough to travel about 50 miles
in just 10 minutes, as opposed to the Volt's 8 hour charge time. It
will also plug into any standard outlet, making it convenient for
commuters. The backup gas engine will be a 1.8 liter four-cylinder. Its introduction into the company's line-up is expected to increase sales substantially.
http://www.huliq.com/3169/71973/byd-auto-sets-production-and-sales-plans-2009
http://www.huliq.com/3169/73057/byd-debut-new-models-guangzhou-show
Unlike GM, which only plans to produce 10,000 of the Volts at
a net loss of about $960 million dollars, BYD plans to mass-produce both
the 3e all-electric and hybrid models at a high profit margin. It
expects to double its total auto sales to 400,000 next year, with the hybrid
leading the way, and the 3e is expected to become a popular
offering with sales of at least 100,000 in 2010. The company plans
to begin selling the 3e hybrid models in Europe in 2010 and the
3e all-electric should be in showrooms in China in 2010, and Europe
in 2011. The company has no plans to bring either model to the U.S.
Here's an article from the New York Times about this little battery company that could. And did.
My question for Ford and GM: If a third-rate Chinese battery company can make a viable electric car, and a commercially viable consumer-friendly plug-in hybrid, why can't the two biggest car companies in the most technologically advanced country in the world make something equally amazing? Or at least a cheap knock-off that is nearly as good?