lithium ion starter batteries: will byd take the place of a123 systems?

This contribution is about building your dream\"BYD (OTCPK:BYDDF)
Buffett\'s most famous investment in China.
Its purpose is to analyze the company\'s introduction of Li-
Ion starter battery micro
Hybrid car market
BYD is now betting on a \"re-listing \".
The \"born\" plan turns around a series of setbacks faced in the past three years4 years.
According to a recent Reuters report, BYD\'s business \"spans batteries, batteries-
Cell phone components, solar panels, LED bulbs and electric and gasoline-
Electric cars and buses.
\"The company now wants to focus on what it\'s best at:\" advanced but affordable iron --
Lithium phosphate-ion batteries\".
In this regard, at the Shanghai auto show, the 2013 BYD released several exciting technologies that improved fuel efficiency by more than 20% of all their 2014 vehicles. up\".
One of the technologies is
Efficiency with Li-48 VDC vehicle voltage platform
Ion battery instead of 12VDC leadacid batteries.
New technology abandoned the first-
The battery is replaced while extending the battery life to the expected life of the car.
In addition, it allows the vehicle to \"go to the full
LED lighting, electronic parking system, hybrid and regenerative braking, idle start-up-
Stop Energy Management, automatic engine start-up, low rolling resistance and advanced aviation-Dynamic design.
Finally, as part of this progress, \"purification technology is integrated into the air conditioning system of the vehicle and detects the level of particulate matter inside and outside, triggering automaticair-
Filter equipment.
\"In an article published on 2011, I concluded: at that time, I was referring to a123 (OTC:AONEQ)
Intend to replace lead-acid batteries with 12v Lithium
Micro ion batteries in particularhybrid cars.
About a year later, A123 announced \"the company\'s production contract with the 12v engine start-up battery of three leading car manufacturers in Europe, including the McLaren motor company of MP4
12C and a major German OEM that will use batteries in passenger cars of the 2013 model year.
In retrospect, this progress seems to be \"too little, too late \". Why?
Well, because this is not part of the business strategy I have suggested in the above contribution.
In addition, A123 had to face a major setback in a few weeks: the consumer report found that A123\'s lithium-ion battery had created a huge failure in the Fisker Karma series
Extended Electric vehicles \"make the car impossible to drive\", forcing battery companies to replace defective battery modules and packages with a total cost of $55 million.
As a result, shares of A123 fell 29%.
Indeed, the company did its best to stay in the market.
In August 2012, it reached an agreement with Wanxiang Group, a major Chinese auto supplier, to secure emergency funding.
However, the agreement was never realized due to undisclosed reasons, resulting in A123 filing for bankruptcy in October 2012.
The rest is history.
A few months later, Wanxiang appeared, and in January 2013, after defeating Johnson Control\'s bid, acquired the devalued A123 asset.
Let\'s go back to BYD now.
The company\'s approach is different from that proposed by A123 Systems Inc.
More than two years ago, there were the following points: of course, the previous comparison was not completely without warning, because A123 and BYD are indeed very different companies.
In fact, while the former is nothing more than a battery manufacturer, the latter is an automobile company that, over the years, has been able to vertically integrate different production lines of internal combustion engines (ICE)
Cars are the same as electric cars.
Vertical integration can be seen as a major advantage of BYD over A123 (
In fact, most other major car manufacturers now
Especially electric cars. Why?
Because it is well known that batteries are the most important in this vehicle.
So if BYD can make competitive
Ion batteries for a particular type of electric vehicle can also be produced and commercialized so that it can control this part of the market.
This requires another consideration of BYD\'s \"reconsider\".
The plan, the new medium-and long-term plan.
As a long-term vision for a car company, because now BYD is talking about specializing in the production of light hybrid cars, according to Bill Moore, evWorld\'s editor, this is clearly a \"huge shift in strategy\"
Electric or no way so far. \"What\'s the matter?
My opinion is that BYD was forced to change its medium and long term.
Run perspective for two reasons.
First, because it learned the lesson of success, not only need to know where to sell, but also need to know what to sell basically, which is a lot of advanced battery companies (including A123)
Recent bankruptcies are largely unintelligible.
Second, because it may have realized that in all the competition
The electric vehicle market needs to be improved in quality, so it may take BYD at least five years after the Reuters report.
To my surprise, Johnson Control has come up with a similar approach in recent weeks. (NYSE:JCI)
It includes the use of its absorbent glass pad 12-
Premium Lead-free environmental protection
Acid battery technology and 48-volt Li-
Ion battery in Micro
Hybrid battery system.
While the former continues to \"power recreational systems such as vehicle starters, internal and external lights, and radios and DVD players\", the latter supports \"higher power loads such as air-
Capture of air conditioning, active chassis technology and direct renewable energy braking.
\"In this case, according to JCI executives Micro
Hybrid cars are the next big thing about energy-efficient cars.
What impressed me most was A123 Systems Inc.
In order to complete the basic same function with a month-volt Li-ion battery.
Does this mean that the battery of A123 is 4 times more efficient than the battery of JCI, or that A123 overestimates the development of this advanced Li-ion batteries?
We may never be sure.
However, JCI\'s interest in acquiring a123 assets last year may indicate the real value of a123 technology.
So now we need to ask why BYD needs 48-
Volt platform is only for the upcoming micro
Mixed revolution.
We have two possibilities.
First, BYD\'s Li-
Ion batteries are more efficient than JCI.
Second, BYD may have overestimated its ability to fulfill its commitments.
According to BYD\'s long-standing recordtime Li-
I prefer to support the first possibility.
Next, we should look at how the stock market reacted to the announcements of BYD and JCI.
This is described in figure 1, where it is clear that BYD\'s share price growth last month was much higher than that of JCI, which again provided additional support to my argument about market returns for innovation.
Finally, although limited, my overall advice to investors is that maybe it\'s time to start investing in BYD. Figure 1BYD vs.
Johnson Control(April -May 2013)(
Click zoom in)Source: Nasdaq.
Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours.
This article was written by myself and expressed my views.
I received no compensation (
In addition to Seeking Alpha).
I have no business relationship with any stock company mentioned in this article.