Samsung In Talks With BYD To Buy Stake In Electric-Car Maker (bloomberg.com)

An anonymous reader writes: Samsung is reportedly in talks with BYD Co. about investing in the Chinese electric-car manufacturer. Bloomberg reports: "Details including the size of the investment will be disclosed when they're confirmed, Samsung said Friday in an emailed statement. The investment in BYD, backed by Warren Buffett's Berkshire Hathaway Inc., would bolster Samsung's semiconductor business for cars, the South Korean company said. Samsung is pursuing the investment after its affiliate was among foreign battery makers left off a list of suppliers approved by China, where sales of electric vehicles are surging and the government has sped up construction of charging points. The talks with BYD also add to the global trend of technology companies and automakers collaborating as car buyers increasingly demand more advanced powertrains and features that improve connectivity and safety. 'It puts Samsung into the electric-vehicle subsystem supply chain for a key Chinese electric vehicle and battery manufacturer,' said Bill Russo, a Shanghai-based managing director at Gao Feng Advisory Co. 'BYD gets a technology innovation pipeline partner with a reputable brand.' China surpassed the U.S. as the largest market for electric vehicles last year. The government wants sales of what it calls new-energy vehicles to exceed 3 million units a year by 2025." With the success of its Galaxy S7 flagship smartphones, Samsung said that its second-quarter operating profit likely rose 17.4% from a year earlier.

Comments

Re:Detroit

[mspohr]

Ford, GM and all the other "established" automakers have been very slow to introduce EVs and the cars they have made are severely crippled (low range, expensive, bad design, etc.). They have mostly been producing limited production "compliance cars" which they are forced to make to avoid regulatory penalties.
Tesla demonstrated that there is significant demand for a practical electric car without compromises. I do hope that the old guard gets its act together but I think this may be another case of established producers reluctant to cannibalize their existing ICE cars where they have invested billions in ICE technology and production. I think they hope this whole EV car fad will go away and they can get back to making muscle cars, SUVs and pick up trucks powered by dinosaur juice.