warren buffett takes charge - lithium ion rechargeable battery

Not only did Buffett see the future car, he was still sitting in the driver's seat.
Why is he counting on a humble Chinese electric vehicle company and a CEO --no joke -
Drink his own battery fluid. (
Fortune magazine)--
Warren Buffett is known for his investment rules: when a brilliant management deals with a business known for its bad economy, it is often the reputation of the business that remains the same.
You should invest in a business that even a fool can run, because a fool will do so one day.
Perhaps most famous, never invest in a business you can't understand.
So when Buffett's friends and long-term partners at Berkshire HathawayBRKB)
Charlie Munger hinted earlier last year that they would invest in BYD ). BYD is a humble Chinese company of batteries, mobile phones and electric vehicles. 3 above.
After all, he is a man who avoids the booming United States. S.
Science and technology industry in the 1990 s
But Mr. Buffett, 78, is interested in Mr. Munger describing the entrepreneurs behind BYD.
He knew each other through a common friend.
Munger told Fortune magazine, "This man is a combination of Thomas Edison and Jack Welch --
Like Edison solving technical problems, like Welch solving what he needs to do.
I have never seen such a thing before.
"From Munger, that means a lot. Munger, the 85-year-
The former vice chairman of Berkshire Hathaway, a grumpy man, dismissed most investment ideas.
Buffett told me, "When I called Charlie, he said, 'This is really a stupid idea, 'which means we should put 100% of our net worth into it.
If he says "this is the stupidest thing I 've ever heard" then you should put 50% of your net worth into it.
Only when he says, 'I want you to promise,' does that mean he really doesn't like the idea.
"This time, Buffett asked another trusted partner, David Sokol, chairman of Berkshire --
The utility, called China-US energy, will travel to China to watch BYD carefully.
Last fall, Berkshire Hathaway bought a 10% stake in BYD for $0. 23 billion.
The deal was awaiting final approval from the Chinese government, but was not given much notice at the time.
As global financial markets plunged into the abyss, the news was announced at the end of September.
But Mr Buffett, Mr Munger and Mr Sokol believe it is a big deal.
They think it is possible for BYD to become the world's largest car manufacturer, mainly by selling electric vehicles, as well as in the rapid
The development of solar industry. Wang Chuan-Pay start BYD (
Letters are the initials of the company's Chinese name)
1995 in Shenzhen, China.
Wang Jianlin, a chemist and government researcher, raised about $300,000 from relatives, rented about 2,000 of the space, and started making rechargeable batteries with Sony and Sanyo
About 2000, BYD has become one of the world's largest cell phone battery manufacturers.
The company continues to design and manufacture mobile devices
Motorola mobile phone and accessories (
Ministry of Transport, top 500 in the world), Nokia (NOK)
Sony Ericsson and Samsung.
Wang entered the auto industry in 2003 by acquiring a state in China.
A car company that has almost closed down.
He knows little about making cars, but it turns out to be a quick study.
In October, a BYD car called F3 became the best-selling car in China.
Popular brands such as Volkswagen Jetta and Toyota (TM)Corolla.
BYD is also selling a plug.
Among electric vehicles with spare gasoline engines, the move is ahead of GM, Nissan and Toyota. BYD's plug-
Called F3DM (For "dual mode ")
, Go further in a charge62 miles -
More than other electric cars, priced at about $22,000, lower than the plug
And a lot in Prius.
When it went public at the end of 2010, the hyped Chevrolet Volt is expected to pay a price.
To put it simply, this little-
It is well known that upstarts are ahead of their larger rivals in the competition to build an affordable electric vehicle.
Today, BYD employs 130,000 employees in 11 factories, eight of them in China and one in India, Hungary and Romania. Its U. S.
Small scale operations-
About 20 people work at a sales and marketing outpost in the sick village of elkgrove.
Around Motorola, about 20 others work in San Francisco, not far from Apple.
BYD produces about 80% of Motorola's RAZR phones, as well as ipod, iphone and low-
Cost computers, including models distributed by Nicholas negompert, a non-profit organization for children in Cambridge, Massachusetts.
In the past five years, annual revenues have increased by about 45% per year, reaching $4 billion in 2008.
Buffett violated some of his rules when buying BYD shares.
"I don't know anything about cell phones and batteries," he admitted . "
"I don't know how the car works either.
But, he added: "Charlie Munger and Dave Sokol are smart people and they do understand that.
There is no doubt that BYD's achievements since 1995 have been remarkable.
One more thing reassured him.
Berkshire Hathaway initially tried to buy a 25% stake in BYD, but Mr. Wang declined the offer.
He wants to do business with Buffett-
Promote his brand in the United States and open the doorS. , he says -
But he will not give up more than 10% of BYD's shares.
"This guy doesn't want to sell his company," Buffett said . "
"This is a good sign.
We lost our way in Shenzhen.
I have flown 8,000 miles to see King, and on my way to the interview my driver stopped by a dusty highway.
He yelled at his mobile phone in Cantonese and frantically painted Chinese characters on the GPS navigator's touch screen.
The PR woman next to me looks worried.
"GPS is not working," she said . ".
"There are too many new roads.
"I can't blame the driver and the GPS --
It seems to me that this is probably made nearby as Shenzhen is the manufacturing center of the global electronics industry and your phone, digital camera and laptop may come from this place.
Just across from Hong Kong, Shenzhen is the largest and fastest --
Most Americans can't find the world's growing cities on the map.
It is also the most Chinese city like the United States because the people who live here come from other places and seek a better life.
In 1980, when Deng Xiaoping identified Shenzhen as China's first "special economic zone" and invited capitalism to take root, Shenzhen was a fishing village;
Today, it is a huge city with a population of 12 million to 14 million people, most of which are migrant workers, who work hard in large factories such as BYD and earn about 1,300 yuan, about $190 a month.
When we found BYD's new headquarters
A silver office building will not appear out of place in Silicon Valley --
I visited the company's "museum" to celebrate the products and milestones in the company's history and was escorted to a conference room with apples, bananas, cherry tomatoes on the table.
Wang sits across from me-
He is 43 years old, short in size, with black hair and glasses.
Start telling me his story by translating.
He started BYD with a modest goal: leading the Japanese market
The battery business dominates.
"It is very expensive to import batteries from Japan," Wang said . "
"There is import tax and the delivery time is very long.
He said: "He studied patents for Sony and Sanyo and took the batteries apart to see how they were made, a" process that requires trial and error ". (
Sony and Sanyo later sued BYD for violating its patents but failed. )
When Wang decided to replace the machine with migrant workers, BYD made a breakthrough.
Replacing the robotic arms used on the assembly line in Japan, BYD actually reduces costs by hiring hundreds of people and then thousands of people who sell for $100,000 or more per vehicle
"I was shocked when I first visited the BYD factory," said Daniel Kim, a technical analyst at Merrill Lynch in Hong Kong who has been to fully automatic production lines in Japan and South Korea.
"It's a completely different business model.
"In order to control the quality, BYD breaks down each job into basic tasks and applies strict test protocols.
As of 2002, BYD has become one of the four largest manufacturers in the world.
Largest manufacturer in China
Each of the 3 charging battery technologies (Li-
Ion, NiCad and NiMH)
According to the Harvard Business School case study of the company.
Wang stressed that unlike Sony and Sanyo, BYD has never faced a battery recall.
Deploying the workforce in BYD is a team of officers for managers and engineers who invent and design products.
Today, the company employs about 10,000 engineers who have graduated from the company's training program.
About 40% of people either drop out of school or get fired --
Another 7,000 college graduates are being trained.
Engineers come from the best schools in China, Wang said.
"They are top notch," he said . "
They worked hard-
They can compete with anyone.
"BYD can hire a lot of these companies because they only earn $600 to $700 a month.
They also get subsidized housing at the company.
Apartment complex with low
Dining fee for BYD canteen.
"They basically breathe, eat, think and work at 24/7 companies . "S.
Have studied executives at BYD.
Wang Tong worked as a regular worker until 11: 00. m.
Or midnight, five or six days a week.
"In China, our generation puts work first and life second," the CEO said . " His wife is responsible for raising two children.
This "human resource advantage" is the "most important part" of BYD's strategy, Wang said ".
His engineers studied a variety of technologies from the air of the car.
A regulation system that can operate on a battery for the design of solar energy
Electric street lights.
Unlike most automakers, almost all of BYD's cars are made by itself --
Not only the engine and body, but also air conditioning, lights, seat belts, airbags and electronics.
"It's hard for others to compete," Wang said . "
"If we put our employees in Japan or the United StatesS.
We can't do things like this.
He himself grew up in extreme poverty.
His parents were farmers and died before he entered high school. he was raised by a brother and sister.
From the village where he grew up by train to the Central South University of Technology where he got his degree in chemistry, he took him to Huangshan, a popular destination for hikers and tourists, but he never went there
"I didn't go at the time because we had no money," he said . "
"I'm not going now because we don't have time.
"As for the accumulation of wealth?
"I'm not interested in that," he said . "
His way of life is certainly not a luxury.
He was paid about $265,000 in 2008, and he lives in byd-
Own apartment building with other engineers.
His only love is a Mercedes and a Lexus, and they have a practical purpose: he takes their engines apart and sees how they work.
On a trip to the United StatesS.
On one occasion, he tried to disassemble the seat of a Toyota car driven by Fred Ni.
Shortly after BYD went public, Wang Jianlin did something unusual: he held about 15% of BYD's shares and distributed the shares to about 20 other executives and engineers at the company.
He still holds about 28% of the shares, worth about $1 billion.
The company itself is very frugal.
Until recently, executives were always flying.
One told me that he was shocked when he learned that Ford had a party at the George V during the Paris auto show. Ford lost billions of dollars last year.
In contrast, BYD executives rented a suburban home for the last time they went to the Detroit auto show to save on hotel rooms.
This focus on costs is one of the reasons why BYD keeps making money, even if it has expanded to new businesses.
Business units of BYD-
Mobile Battery
Mobile components and cars
Despite its small size, it was profitable in 2008.
Overall, net profit was about $0. 187 billion.
BYD, which traded on the Hong Kong stock exchange, has a market capitalization of about $3. 8 billion.
Than Ford (F, Fortune 500)(
$7 billion in early April)
But than GM (Fortune 500 gm($1. 3 billion).
At the end of our conversation, I asked Wang's name.
It is reported that BYD represents "realizing your dream," but he said he later took this as the company's motto.
It is also said that with Motorola, Apple and Berkshire Hathaway coming to Shenzhen, the name has another meaning: bring your money.
** When David Sokol visited BYD's business last summer, Wang Leehom took him to a battery factory and explained that BYD wanted to make its battery 100% recyclable.
To this end, the company has developed a non-toxic electrolyte liquid.
To emphasize this, Wang poured the battery liquid into a glass and drank it.
"The taste is not very good," he said, giving Sokol a sip while making faces.
Sokol politely refused.
But he got the message.
"His focus is that if we are going to help solve environmental problems, we can't create new environmental problems with our technology," Sokol said . ".
Sokol, author of the book "principles of management", called "happy but not satisfied", evaluated Wang Jianlin during that visit and considered him
Sokol said, "the income of many outstanding entrepreneurs can increase from zero to millions or hundreds of people.
He has more than 100,000 people.
Few people can do this.
"When he returned to the United States. S.
"This guy is amazing," Sokol told Buffett.
You want to meet him.
"Sokol believed in electric cars before visiting BYD.
Due to the threat of climate change, his staff in China and the United States have been studying clean technologies such as batteries and wind power for many years.
In any case, energy companies need to produce more energy while reducing carbon dioxide emissions, Sokol said.
Electric cars are the answer.
They produce less greenhouse gas emissions compared to cars that burn gasoline, and even if oil is cheap, fuel costs are lower.
This is because electric engines are more effective than internal engines.
Because energy is generated on a large scale (
In coal or nuclear power plants)
Less waste than small scale (
By burning gasoline inside
Internal combustion engine).
These numbers look like this: Suppose you drive 12,000 miles a year, gasoline is $2 a gallon, and electricity is $12 a kilowatt, which is what most Americans pay. A gasoline-
20 miles per gallon power car
For example, Chevrolet Impala or BMW X3
The cost of fuel is $1,200 per year, generating about 6.
6 tons of carbon dioxide.
Equipped with electric motors for these cars, fuel costs drop to $400 a year and emissions drop to about 1. 5 tons.
The biggest problem is that they have a high manufacturing cost and the battery is the biggest cost.
Make a safe, reliable, long-lasting
Lasting, fast
Charging a car is a complicated and expensive job.
BYD claims a breakthrough in lithium-ion iron phosphate technology, but no one can determine if it will work as promised.
Skeptics say BYD's batteries cannot be more powerful and cheaper than those made by competitors and the United States. S.
Doe bought a F3DM to take the battery apart.
Chitra Gopal, Singapore-based analyst at Singapore Securities, closely watched the company, saying BYD was betting on "new technology ", the capacity to produce on a low cost mass scale is still not confirmed.
Publisher and Editor William Moorein-
The head of EV World, an electric vehicle website, said, "they need to convince people that they are selling a reliable, durable, high-quality car.
Even BYD's admirers say there is still a big gap between the fit and finish of BYD's car.
Sokol admitted: "Their car is definitely far behind Toyota . "
BYD currently exports gasoline
There are power cars in Africa, South America, the Middle East and so on, but they compete in price, not in quality.
BYD's first plug-
In hybrid power, called double
Model cars, mainly operating on electricity, inside
Standby internal combustion engine. Two all-electric cars -
E3 and E6-
Will follow up later this year.
The two cars will be sold in China first, mainly for fleet users: government, post office, utilities and taxi companies, all of which will build central quickly
Charging facilities.
Europe is the most promising export market for BYD electric vehicles, with high gas prices.
Wang signed an agreement last year with Dutch dealer group Autobinck to sell cars in the Netherlands and five Eastern European countries.
The company has yet to decide whether it will enter the US market. S.
In this market, the economy of electric vehicles is not so noticeable.
Sokol, now a member of BYD's board of directors, said BYD could become a battery supplier for global automakers.
However, some Americans are eager to do business with BYD.
Fortune magazine visited BYD the second day of the Oregon government.
Ted Kulongoski is here to test.
Drive an electric car and urge the company to import it through Port Portland.
Meanwhile, BYD researchers are looking at their next big idea, what they call a product for a home clean energy solution.
It is essentially a set of rooftop solar photovoltaic panels with built-in batteries that store power when the sun does not come out, all designed and manufactured by BYD.
"Solar energy is an endless stream of energy," Wang said . "
"With better technology, we can reduce the cost.
Wang also focused on building a stronger executive team to move the company forward.
"The good news is that he is 42 years old," Sokol said . ".
"The bad news is that he is clearly the brain behind the organization and the drive.
He has to develop a team faster, but I think he knows that.
"Last winter, it was Sokol's turn to show the leader his country.
They started in Detroit, where BYD's car caused a stir at the North American auto show and ended up on the west coast, with Wang Jianlin meeting Charlie Munger for the first time.
They stopped in Omaha.
"How did BYD lead so far?
Warren Buffett asked Wang through translation.
"Our company is based on technical knowledge.
"How ? " Answer Wang.
Buffett, who has been cautious about the tech industry, asked how BYD would stay ahead.
"We will never, we will never rest," Wang replied . ".
Buffett may not understand batteries, cars, or Mandarin.
However, there is no need for translation to drive.