BYD = JOBS

AutoChina.org (LA  November 3)-Last week, Chinese hybrid/electric car manufacturer BYD (Build Your Dreams) opened its North American headquarters in Los Angeles. With this step, the car manufacturer plans to make big inroads into the Los Angeles market. They hope to make deals with LA officials to contract for their electric and hybrid vehicles in public transportation. Mayor Antonio Villaraigosa, who officiated at the inauguration of BYD’s offices, was effusive as he welcomed the company and the 150 new jobs they would probably seek to fill. The autos will be manufactured abroad and imported into the US.

At first glance, the deal seems like a beneficial idea. Bringing a new business to the LA area and creating new jobs will be a welcome change in the current economic crisis of job losses and budget cuts. The new jobs would be immediate openings, mostly in engineering and management positions. As the company picks up steam in the competitive North American market, more jobs pertaining to supply chain, vehicle maintenance and installation of BYD products will become available. BYD’s plan is to introduce shuttle and public transport buses into limited markets within their first year, selling their products to rental companies and the like for their shuttle systems. Hertz has already added an all-electric shuttle to their fleet and the leading rental car company plans to offer BYD’s e6 5-seater to customers at LAX. Eventually BYD, a company whose projects extend to LED lighting, solar panels and recharging technology, hope to roll-out nationwide to compete with Toyota’s Prius and Chevy’s Volt.

However, some Chinese industries hold a lackluster track record in the US. Several years ago, Chinese tire manufacturers began selling their products in the US, which were primarily used in large work vehicles, such as heavy-duty trucks and big rigs. However, due to a lack of quality control the tires had high rates of failure, causing the US government to levy heavy tariffs upon imports of Chinese tires. Will this misstep happen again? Hopefully BYD recognizes these mistakes made by predecessors and does everything within their power to avoid repeating them.

California is one of the most competitive markets for the automotive industry, and the consumers here recognize when a product doesn’t live up to expectations. It is still unclear whether or not Chinese BYD is here to stay; their performance in the coming months will determine their long term plans within North American territory.