Bus giants move towards £2billion deal
A £660m deal with the potential to more than triple in the next 10 years was signed in London today by two of the world’s leading bus manufacturers.
BYD - the world’s biggest producer of pure electric buses – is to join forces with British bus builder Alexander Dennis Limited (ADL) in a bid to transform the transport landscape in the UK, and elsewhere, with the introduction of revolutionary emission-free buses.
A joint venture agreement was signed today on the occasion of the State visit to the UK by President Xi Jinping of China. It envisages an initial contract between the two bus giants to build 200, 12-metre single deck buses per annum, representing turnover of around £660m over the next 10 years.
However, no sooner was the ink dry on the agreement than both companies confirmed that they are already in advanced discussions with a view to extending their alliance to include double deck buses, a sector in which ADL is a renowned world leader. When this happens there is potential to triple the scale of the current deal to almost £2billion.
The BYD-ADL collaboration deal was signed today by Wang Chuanfu, Founding Chairman of BYD, and Colin Robertson, Chief Executive of ADL, with both men confirming that their ultimate objective is to transform global transport systems to pure electric, emission-free buses.
Speaking at the signing ceremony, BYD’s Mr Wang said: “Working with top industry partners such as ADL will enable us to speed up acceptance of our vision for fully-electrified public transport systems that can make a major contribution towards the clean air challenges facing cities around the world. ADL’s know-how and local market experience in the UK, combined with their global expertise in the double deck sector and our class-leading knowledge of electric technology, creates the perfect platform to jointly develop a range of cost effective, emission-free vehicles to suit every requirement.”
ADL’s Colin Robertson added: “This is the start of an exciting journey with enormous potential and we are delighted to be working with BYD. Their expertise in electric vehicle technology is second-to-none, while we have a global reputation for robust, reliable, high performance vehicles that deliver what they promise – and are backed by world-leading parts and service support, both in the UK and international markets.”
“The combined strengths of BYD and ADL create a powerful new alliance and I look forward to our business relationship flourishing in the years ahead. It is a fine example of British-Chinese co-operation and two innovative companies working together to create cleaner, greener transport solutions. It is also important to recognise that it is initiatives like this that helps us support 2,500 ADL jobs and a further 1,500 in our build partnerships around the world.”
BACKGROUND
BYD and ADL first indicated their intention to work together in July this year when the former confirmed that it had won an order for 51 12-metre, full electric single deck buses for Transport for London, which is the biggest all-electric bus order ever to be tendered in the EU. All 51 of the vehicles will incorporate BYD chassis and electric powertrain technology and will be bodied by ADL at their Falkirk manufacturing facility in Scotland where over 1,000 people are employed. The vehicles will adopt ADL’s best-selling Enviro200 midi bus look.
The new partnership is important in that it demonstrates the growing acceptance in developed countries of new energy vehicle technology from China. Furthermore, it is a good example of the “Go Out Policy of Chinese Enterprises” and opens a new chapter for co-operation between Chinese and British businesses.
ABOUT BYD
BYD Co., Ltd is a leading-edge provider of green energy technologies that specializes in the IT, automotive, and new energy industries. Being the world’s biggest rechargeable battery manufacturer, BYD also has the largest global market share for cell-phone chargers and keypads. BYD branched out into the auto business in 2003, and has kept a robust yearly growth rate successively. In 2008, Warren Buffett invested $232 million to take a 9.89% stake in BYD. Today, BYD is the fastest-growing Chinese auto company and a global pioneer in the field of new energy vehicles including Dual Mode Electric Models and Pure Electric Models.
Based on its core Iron-Phosphate Battery technology, BYD has worked out a Green City Solution, which aims to electrify urban public transportation systems by transitioning from gasoline and diesel buses and taxis to pure electric ones. In March 2012, BYD and Daimler AG officially announced the entirely new EV brand Denza in China.
In addition, BYD has also focused on the Research & Development and manufacturing of a wide range of new energy products, including energy storage system, solar energy products and LED lighting. For more information, please visit www.byd.com, www.byd-auto.net, www.facebook.com/bydauto or email pr@byd.com.
ABOUT ADL
ADL is the largest British-owned business in the UK automotive sector and in recent years has been one of the fastest-growing bus and coach manufacturers in the developed world. It anticipates further growth of circa 20% with turnover moving towards £600m this year. It employs 2,500 people globally and supports a further 1,500 jobs through its global build partnerships. It specialises in the manufacture of lightweight, fuel-efficient city buses and coaches. ADL has extended its international reach significantly since 2007 through a series of alliances, JVs and acquisitions that now give it a significant presence in Europe, Hong Kong, China, Malaysia, Singapore, New Zealand, the USA and Canada.
Further information from:
Penny Peng, at BYD, on +31 -102070888 (office)
penny.peng@byd.com
Martin Hayes, at BYD, on +44 (0) 7836 21009 (mobile)
martin@mchassociates.org
Bill Simpson, at ADL, on +44 (0)1483 571271 (office) or 0776699 5000 (mobile)
bill.simpson@alexander-dennis.com