Chinese automaker BYD has long promised a low-cost, high-quality electric sedan. And up until now, it has failed to deliver. The company may have just gotten the kick in the pants it needs, however, now that it has partnered with European automaker Daimler to build a four-door electric sedan–a different model than the electric e6 car that BYD has reportedly been working on.
The partnership makes good business sense for both companies. BYD has plenty of capital (including $250 million from Warren Buffett), but lacks Daimler’s reputation for quality. And Daimler can use BYD’s expertise in building battery packs, as well its alleged knowledge of EV manufacturing.
Daimler isn’t just betting on BYD’s success. The company also has a nearly 10% stake in Tesla Motors, and it plans to release an all-electric Mercedes Benz A-Class vehicle later this year.