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American automakers, alive only with federal assistance and in need of massive restructuring to survive 2009, may soon face competition on their home turf. Chinese automaker BYD, displaying its wares now at the Detroit Auto Show, says it plans to move into the U.S. market by 2011.
Kicking Tires reports that the company “says it will launch models…in Europe in 2010, and that it plans to enter the U.S. market in 2011.” The company is displaying two plug-in hybrids and a pure electric vehicle at the show, and believes that environmentally-friendly cars will be its niche in the American marketplace.
Reporting from the auto show floor, the New York Times comments, “Few people here are willing to dismiss [BYD's] goals as absurd.” Industry analysts reportedly “are not so sure that BYD, or any other Chinese manufacturer, is that close to arriving in the United States.” David Champion, director of auto testing for Consumer Reports, tells the Times “They underestimate how much it’s going to take to break into the market.” However, the Times notes that BYD already “produces many of the world’s cellphone batteries.” Battery technology is an increasingly important factor in an automaker’s success. Also, the Times notes, “a recent investment in BYD by Warren E. Buffett’s holding company, Berkshire Hathaway, has considerably increased its credibility.”
One of the vehicles the company brought to Detroit has particularly impressed Autoblog. The BYD e6, they write, is “the world’s first production plug-in hybrid crossover.” The small wagon-like vehicle features a battery that, the company claims, can be recharged to 50% of its capacity in ten minutes. “Granted, the remaining 50% requires another hour or so, but half a charge is good for about 125 miles, which should ease customers’ range anxiety. The e6 has a simple but pleasant shape and adequate room inside,” Autoblog comments, “So if the price is right, it could attract a broad demographic of buyers — and that’s what BYD is counting on.”
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