Buffett-Backed Auto Maker BYD is Probed Over Factory Emissions
BEIJING—Fast-growing car maker
BYD Co.
1211 -4.11%
is being investigated by local authorities in the central Chinese city of Changsha, after people living near one of the company’s biggest factories raised concerns about its emissions and complained of health problems.
The city’s government said Sunday that it has formed a team to look into gas emissions from BYD’s plant, “in response to the public’s feedback.” It has roped in third-party testing agencies and other relevant experts, according to a statement posted on Chinese social media.
Last week, some residents who live in compounds surrounding BYD’s manufacturing plant on the outskirts of Changsha, the capital of Hunan province, protested in front of the factory, according to local media reports and social-media posts.
On Saturday, China Philanthropist, a state-backed magazine, published a story that quoted residents as saying that some children living near the plant suffered nosebleeds in the past two months. It also said some adults have experienced symptoms such as nausea, vomiting and persistent coughs.
In response to residents’ complaints, BYD said Saturday on social media that its factory follows relevant national regulations and standards, and that it has taken steps to address “a potential odor situation” in residential areas near the plant.
The company added that messages circulating online suggesting that the plant’s “emissions have exceeded limits and led to nosebleeds” are a “malicious fabrication.” BYD added it has reported the matter to the police. The company didn’t respond to requests for comment Monday.
The Shenzhen-listed shares of BYD fell 3.9% Monday following news of the local government probe. The shares have dropped 13% in the year to date, but have performed better than an index of the largest stocks listed in mainland China.
A unit of billionaire
Warren Buffett’s Berkshire Hathaway Inc.
has owned shares in BYD for more than a decade; its stake recently amounted to about 7.7% of the company.
The Changsha plant, which started production in 2012, is one of Shenzhen-headquartered BYD’s main automotive plants, where around a fifth of its vehicles are produced. They include the electric Yuan sport-utility vehicle, the Song Max seven-seater multipurpose vehicle and its electric “e” product series.
BYD, one of China’s biggest auto makers and a major battery producer, recently reported a 63% year-over-year increase in first-quarter revenue to the equivalent of $10 billion, thanks to strong sales of its electric vehicles. The company’s net profit jumped 241% to the equivalent of $121.3 million.
Last year, BYD ranked No. 1 in electric car sales among auto makers in China. It sold 584,020 electric vehicles in the country, more than triple its total in 2020, according to data from the China Passenger Car Association.
It isn’t the first time BYD has faced complaints about its plant emissions. In 2017, a resident living near the same plant filed a complaint to Hunan province’s environment department, saying that pungent gas released by the plant made them feel nauseated, according to the environment department’s website.
The environment regulator in Changsha put the factory on a watch list in 2018 after receiving repeated complaints over pollution, and ordered BYD to rectify the problems and close a casting workshop. The plant’s emissions met standards in the following four inspections through mid 2019, the regulator said.
—Qianwei Zhang and Raffaele Huang contributed to this article.
Write to Yoko Kubota at [email protected] and Clarence Leong at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
BEIJING—Fast-growing car maker
BYD Co.
1211 -4.11%
is being investigated by local authorities in the central Chinese city of Changsha, after people living near one of the company’s biggest factories raised concerns about its emissions and complained of health problems.
The city’s government said Sunday that it has formed a team to look into gas emissions from BYD’s plant, “in response to the public’s feedback.” It has roped in third-party testing agencies and other relevant experts, according to a statement posted on Chinese social media.
Last week, some residents who live in compounds surrounding BYD’s manufacturing plant on the outskirts of Changsha, the capital of Hunan province, protested in front of the factory, according to local media reports and social-media posts.
On Saturday, China Philanthropist, a state-backed magazine, published a story that quoted residents as saying that some children living near the plant suffered nosebleeds in the past two months. It also said some adults have experienced symptoms such as nausea, vomiting and persistent coughs.
In response to residents’ complaints, BYD said Saturday on social media that its factory follows relevant national regulations and standards, and that it has taken steps to address “a potential odor situation” in residential areas near the plant.
The company added that messages circulating online suggesting that the plant’s “emissions have exceeded limits and led to nosebleeds” are a “malicious fabrication.” BYD added it has reported the matter to the police. The company didn’t respond to requests for comment Monday.
The Shenzhen-listed shares of BYD fell 3.9% Monday following news of the local government probe. The shares have dropped 13% in the year to date, but have performed better than an index of the largest stocks listed in mainland China.
A unit of billionaire
Warren Buffett’s Berkshire Hathaway Inc.
has owned shares in BYD for more than a decade; its stake recently amounted to about 7.7% of the company.
The Changsha plant, which started production in 2012, is one of Shenzhen-headquartered BYD’s main automotive plants, where around a fifth of its vehicles are produced. They include the electric Yuan sport-utility vehicle, the Song Max seven-seater multipurpose vehicle and its electric “e” product series.
BYD, one of China’s biggest auto makers and a major battery producer, recently reported a 63% year-over-year increase in first-quarter revenue to the equivalent of $10 billion, thanks to strong sales of its electric vehicles. The company’s net profit jumped 241% to the equivalent of $121.3 million.
Last year, BYD ranked No. 1 in electric car sales among auto makers in China. It sold 584,020 electric vehicles in the country, more than triple its total in 2020, according to data from the China Passenger Car Association.
It isn’t the first time BYD has faced complaints about its plant emissions. In 2017, a resident living near the same plant filed a complaint to Hunan province’s environment department, saying that pungent gas released by the plant made them feel nauseated, according to the environment department’s website.
The environment regulator in Changsha put the factory on a watch list in 2018 after receiving repeated complaints over pollution, and ordered BYD to rectify the problems and close a casting workshop. The plant’s emissions met standards in the following four inspections through mid 2019, the regulator said.
—Qianwei Zhang and Raffaele Huang contributed to this article.
Write to Yoko Kubota at [email protected] and Clarence Leong at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8