BYDpart2 - Product The concept of electric vehicles has...

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Product The concept of electric vehicles has been around for quite some time, but has often failed because the batteries produced have often been too heavy, bulky, or expensive. Until recently, no battery has been able to store enough energy in a small amount of space, recharge quickly, and operate in various weather conditions. Lithium-ion batteries, however, hold the most promise. According to Mr. Wang, BYD’s lithium-ion battery uses an iron-phosphate technology that is chemically stable and inherently safe so that it can withstand differing climates. Such battery technology was created over a span of more than ten years of research and development. This continuous period of research, however, has given BYD a competitive advantage with its unique lithion-ion battery. BYD’s current hybrid vehicles include the F3DM and the F6DM model. However, close comparison of these vehicles with other well-established hybrid cars such as the Toyota Prius reveals that the BYD models are weaker in many features. These include areas such as size dimensions, highway mpg, and fuel tank size. Thus, BYD’s hybrid vehicles are not up to par with the quality levels of its competitors’ models. While BYD’s F3DM and F6DM models are not as attractive when compared to other hybrid vehicles, the company does have a competitive advantage with its advanced lithion-ion battery system. This battery system holds the most promise for BYD when entering the United States market, as the system presents advanced technology by allowing vehicles to plug into outlets with batteries that are able to be recharged on the go by the gasoline engine. Therefore, BYD should capitalize upon its battery system technology in order to build its brand within the United States. To enter the United States market, BYD should enter into a joint venture with an automobile company that is already established in the country. Research on automobile companies reveals that Mercury, a current automobile company in the United States, would be a promising company to partner with. Mercury would be a good company as it is a division of Ford and is currently in financial distress, with forecasts to end operations by 2012. Forming a joint venture with Mercury would therefore be beneficial for both automobile companies. The strategic alliance between BYD and Mercury would produce a new sub-brand, BYD AG. Such a partnership will allow new hybrid vehicles to be developed with BYD creating and developing battery systems, while Mercury builds the other internal automobile parts and external models for the vehicles. Thus, BYD’s sole contribution will be its lithion-ion battery, dual energy systems. The newly produced vehicles will be developed with mid-level quality levels. When
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This note was uploaded on 05/02/2010 for the course ACCT 3756 taught by Professor Leung during the Three '09 term at University of Sydney.

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BYDpart2 - Product The concept of electric vehicles has...

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