Buffett to Visit BYD in China Amid Declining Sales, Disputes
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When Warren Buffett visits Chinese carmaker BYD Co. next week, he’ll find a company facing sliding sales and legal disputes with the government and Foxconn International Holdings Ltd.
Berkshire Hathaway Inc.’s $232 million investment in Shenzhen-based BYD grew more than 10-fold in little over a year and was worth about $2.5 billion by October. That stake is now valued at about $1.6 billion after BYD’s shares plunged 21 percent this year. Sales at the company, the fastest-growing carmaker in China during 2009, fell 19 percent in August, while rivals Dongfeng Motor Group Co., General Motors Co. and SAIC Motor Corp. each gained at least 19 percent.