BYD factories confiscated by the Chinese government

Article by Christian Andrei, on October 14, 2010

The Ministry of Land and Resources in China has revealed that BYD Co. has been ordered to pay a fine of 2.95 million yuan ($442,000) and to give up seven factories after a dispute over land use in central China.

BYD, which is a Chinese carmaker partially owned by billionaire Warren Buffett's Berkshire Hathaway Inc., will have its factories in Xi'an, Shaanxi confiscated. Before this ruling, BYD had already been suffering due to declining domestic sales and scaled-back plans to sell electric cars in California.

In a separate report, BYD said that its auto sales in September fell in 25%, even as the deliveries of its rivals (including SAIC Motor Co. and General Motors Co.) have grown.

Yu Bing, an auto analyst with Pingan Securities Co. in Shanghai, said that this will “affect their capacity expansion in the medium to long term.”

Yu said that BYD has to boost their capacity now if it wants to be able to fill its production requirements in the next two to three years. BYD was the fastest- growing major carmaker in China last year. [via Bloomberg]

Topics: byd, china

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016