At some time after the political turmoil triggered by the famous Wikileaks, news have surfaced about BYD Auto, a Chinese producer of cars and batteries. The automaker is also the leading producer of batteries for mobile phones in the world and it is supported by Warren Buffett.
Some of this information has been disclosed in a report published by Reuters, which suggests that the U.S. investor is very much at risk by supporting the Chinese BYD with the 232 million dollars it has spent to purchase a package of 9.9 % of the Chinese company’s stock portfolio.
According to Reuters, the technology of BYD in the domain of electric vehicles is not as advanced as it is said, and here we are talking about the batteries used by their electrical models.
In addition, the report says that sales of BYD electric cars are not at all great and their technology and design are not very impressive. Another problem concerns the safety standards at which these cars are built. More specifically, a consultant who preferred to remain anonymous said that one of the BYD models is so inadequately built that the doors fall if they are are slammed too hard.
In addition, BYD could have a problem with international copyright laws in terms of original designs, says Guangzhou Consul-General Brian Goldbeck. That doesn’t just concern the interior and exterior designs, but also the used parts of these cars. More specifically, some car manufacturers have told Reuters that BYD buys a small amount of components from respectable suppliers, which they then copy and reassemble with inferior materials for use on their own models.